Time To Sell Or More Gains Ahead? – Neptune Wellness Solutions Inc. (NEPT), EyePoint Pharmaceuticals Inc. (EYPT)

Neptune Wellness Solutions Inc. (NASDAQ: NEPT) shares are -2.91% down in the year-to-date (YTD) period and have moved 5.12% or $0.13 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +178.13% lower. Comparatively, the stock is -25.42% down YTD and -10.40% over the trailing 3-month period. If we look at the shorter duration, its week performance is -3.26% and -4.98% over the month.

Analyst Recommendations

On January 31, 2020, Cowen recommended the NEPT stock is a Market Perform, while earlier, Alliance Global Partners had Initiated the stock as a Buy on August 07, 2020. 5 analysts offering the recommendations for the stock have a consensus rating of 2.00 to suggest that the NEPT stock is a “Moderate Buy. 0 of the 5 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 4 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $2.67 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $3.15. The forecasts give the Neptune Wellness Solutions Inc. stock a price target range of $5.33 on the higher side while at least one analyst think the stock could plunge to a low of $3.22. The two limits represent an upside potential of 49.91% or 17.08%.

EyePoint Pharmaceuticals Inc. (NASDAQ:EYPT), on the other hand, is trading around $0.58 with a market cap of $61.91M and analyst research firms have a positive stance on its shares. Some analysts are even forecasting -$0.36 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the EyePoint Pharmaceuticals Inc. (EYPT) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

EYPT’s operating expenses over the recent quarter were at $15.27 million. This represented a -270.55% of the company’s total revenues which amounted $4.12 million. With this in place, we can see that the company’s diluted EPS declined -$0.10 on the year-over-year period, shrinking to -$0.11 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 $69.69 million from $80.29 million over the previous quarter. The cash flow from operating activities totaled -$21.47 million, significantly higher than the -$30.44 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$21.51 million.

Insider activity

Insiders have transacted a total of 14 times at EyePoint Pharmaceuticals Inc. over the last 6 months, with insider purchases undertaken 10 times and accounting for 433,967 shares. Insider sales totaled 33,213 shares over the same period, with these deals completed in 4 transactions. Looking at these numbers, we realize that net purchases over that period are 6.0 shares. Insiders now hold a total of 1.03M shares after the latest sales, with 72.70% net shares purchased.

Major holders

Insiders own 0.70% of the company shares, while shares held by institutions stand at 48.80% with a share float percentage of 123.93M. Investors are also buoyed by the number of investors in a company, with EyePoint Pharmaceuticals Inc. having a total of 93 institutions that hold shares in the company. The top two institutional holders are Essex Woodlands Management Inc. with over 41.91 million shares worth more than $31.73 million. As of Jun 29, 2020, Essex Woodlands Management Inc. held 33.47% of shares outstanding.

The other major institutional holder is HighTower Advisors, LLC, with the investment firm holding over 5.28 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $4.0 million and represent 4.22% of shares outstanding.