Summarizing The Case For Overstock.com Inc. (OSTK), Clear Channel Outdoor Holdings Inc. (CCO)

Overstock.com Inc. (NASDAQ: OSTK) shares are 1261.56% up in the year-to-date (YTD) period and have moved -12.35% or -$13.53 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +3,694.07% lower. Comparatively, the stock is -25.30% down YTD and 422.54% over the trailing 3-month period. If we look at the shorter duration, its week performance is -21.53% and 58.03% over the month.

Analyst Recommendations

On July 02, 2020, DA Davidson recommended the OSTK stock is a Buy, while earlier, Piper Sandler had Initiated the stock as a Overweight on August 17, 2020. 3 analysts offering the recommendations for the stock have a consensus rating of 2.00 to suggest that the OSTK stock is a “Moderate Buy. 0 of the 3 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 3 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $95.99 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $121.50. The forecasts give the Overstock.com Inc. stock a price target range of $140.00 on the higher side while at least one analyst think the stock could plunge to a low of $103.00. The two limits represent an upside potential of 31.44% or 6.81%.

Earnings Forecast

Analysts estimate the earnings to increase 1,100.00% in the current quarter to -$0.25, up from the -$0.87 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $0.09, up 40.90% from -$3.46 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.23 and -$0.05. Wall Street estimates earnings per share to be at an average of $0.17 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 51 over the last 12 months, while SEC filings reveal that there have been 46 insider sales over the same period. Insiders have purchases 188,753 shares while those sold by company executives and officers stand at 3,245,786. The last 3 months have seen insiders trade a total of 667 and 14,210 in purchases and sales respectively.

Weight Joel, a Chief Technology Officer at the company, sold 435 shares worth $49985.0 at $114.91 per share on Aug 18. The Chief Customer Officer had earlier sold another 860 OSTK shares valued at $0.11 million on Aug 19. The shares were sold at $124.56 per share. Baker Mark Alan (Chief Product Officer) sold 2,000 shares at $107.20 per share on Aug 17 for a total of $0.21 million while Tuohig Meghan, (Chief People Officer) sold 4,469 shares on Jul 30 for $0.34 million with each share fetching $75.00.

Clear Channel Outdoor Holdings Inc. (NYSE:CCO), on the other hand, is trading around $1.17 with a market cap of $603.54M and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $1.59 and spell out a more modest performance – a 26.42% return. Some analysts are even forecasting -$1.28 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Clear Channel Outdoor Holdings Inc. (CCO) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

CCO’s operating margin was negative on the trailing 12 months basis, remaining steady at -7.40%, while the operating expenses over the recent quarter were at $129.5 million. This represented a 58.88% of the company’s total revenues which amounted $314.91 million. With this in place, we can see that the company’s diluted EPS declined -$0.30 on the year-over-year period, shrinking to -$0.03 as given in the last earnings report.

In terms of the balance sheet & cash flow as of (Sep 2020), the total assets figure advanced to $5.56 billion from $6.12 billion over the previous quarter. The cash flow from operating activities totaled -$24.42 million, significantly lower than the $55.13 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$87.59 million.

Insider activity

Insiders have transacted a total of 12 times at Clear Channel Outdoor Holdings Inc. over the last 6 months, with insider purchases undertaken 3 times and accounting for 430,000 shares. Insider sales totaled 227,224 shares over the same period, with these deals completed in 9 transactions. Looking at these numbers, we realize that net purchases over that period are -6.0 shares. Insiders now hold a total of 3.9M shares after the latest sales, with 33.10% net shares purchased.

Major holders

Insiders own 0.90% of the company shares, while shares held by institutions stand at 97.20% with a share float percentage of 463.01M. Investors are also buoyed by the number of investors in a company, with Clear Channel Outdoor Holdings Inc. having a total of 223 institutions that hold shares in the company. The top two institutional holders are Allianz Asset Management GmbH with over 105.01 million shares worth more than $109.21 million. As of Jun 29, 2020, Allianz Asset Management GmbH held 22.47% of shares outstanding.

The other major institutional holder is Ares Management LLC, with the investment firm holding over 31.68 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $32.94 million and represent 6.78% of shares outstanding.