Unsafe At Current Price? – US Foods Holding Corp. (USFD), LM Funding America Inc. (LMFA)

US Foods Holding Corp. (NYSE: USFD) shares are -42.80% down in the year-to-date (YTD) period and have moved 5.32% or $1.21 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +187.98% lower. Comparatively, the stock is -43.33% down YTD and 25.18% over the trailing 3-month period. If we look at the shorter duration, its week performance is 2.97% and 14.81% over the month.

Analyst Recommendations

On July 17, 2020, BTIG Research recommended the USFD stock is a Buy, while earlier, Credit Suisse had Resumed the stock as a Outperform on August 06, 2020. 9 analysts offering the recommendations for the stock have a consensus rating of 2.00 to suggest that the USFD stock is a “Moderate Buy. 0 of the 9 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 6 recommend buying, with 1 rating it as an Overweight.

The stock currently trades at $23.96 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $26.63. The forecasts give the US Foods Holding Corp. stock a price target range of $34.00 on the higher side while at least one analyst think the stock could plunge to a low of $22.00. The two limits represent an upside potential of 29.53% or -8.91%.

Earnings Forecast

Analysts estimate the earnings to increase 28.60% in the current quarter to $0.18, down from the $0.65 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $0.4, down -10.10% from $2.38 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between $0.05 and $0.51. Wall Street estimates earnings per share to be at an average of $1.38 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 56 over the last 12 months, while SEC filings reveal that there have been 31 insider sales over the same period. Insiders have purchases 1,271,174 shares while those sold by company executives and officers stand at 360,964. The last 3 months have seen insiders trade a total of 154,169 and 52,221 in purchases and sales respectively.

Locascio Dirk J., a Chief Financial Officer at the company, sold 26,940 shares worth $1.09 million at $40.57 per share on Feb 12. The Director had earlier bought another 5,000 USFD shares valued at $0.11 million on Jun 10. The shares were bought at $21.09 per share. Satriano Pietro (Chairman & CEO) sold 184,666 shares at $39.23 per share on Nov 08 for a total of $7.24 million while Satriano Pietro, (Chairman & CEO) sold 66,451 shares on Nov 07 for $2.67 million with each share fetching $40.15.

LM Funding America Inc. (NASDAQ:LMFA), on the other hand, is trading around $0.66 with a market cap of $9.88M and analyst research firms have a negative stance on its shares.

Let us briefly look at the LM Funding America Inc. (LMFA) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

LMFA’s operating expenses over the recent quarter were at -$0.43 million. This represented a 225.95% of the company’s total revenues which amounted $0.34 million. With this in place, we can see that the company’s diluted EPS declined -$0.11 on the year-over-year period, shrinking to -$0.17 as given in the last earnings report.

The cash flow from operating activities totaled -$0.49 million, significantly higher than the -$0.66 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$0.49 million.

Insider activity

Insiders have transacted a total of 0 times at LM Funding America Inc. over the last 6 months, with insider purchases undertaken 0 times and accounting for 0 shares. Insider sales totaled 0 shares over the same period, with these deals completed in 0 transactions. Looking at these numbers, we realize that net purchases over that period are 0.0 shares. Insiders now hold a total of 2.85M shares after the latest sales, with 0.00% net shares purchased.

Major holders

Insiders own 3.50% of the company shares, while shares held by institutions stand at 0.70% with a share float percentage of 4.75M. Investors are also buoyed by the number of investors in a company, with LM Funding America Inc. having a total of 9 institutions that hold shares in the company.