Volatility Returns To YRC Worldwide Inc. (YRCW), Performance Food Group Company (PFGC)

YRC Worldwide Inc. (NASDAQ: YRCW) shares are 70.20% up in the year-to-date (YTD) period and have moved -0.91% or -$0.04 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +236.43% lower. Comparatively, the stock is -23.17% down YTD and 193.24% over the trailing 3-month period. If we look at the shorter duration, its week performance is -14.23% and 60.74% over the month.

Analyst Recommendations

On November 09, 2018, Stifel recommended the YRCW stock is a Hold, while earlier, Stifel had Resumed the stock as a Hold on August 25, 2020.

The stock currently trades at $4.34 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $8.00. The forecasts give the YRC Worldwide Inc. stock a price target range of $12.00 on the higher side while at least one analyst think the stock could plunge to a low of $4.00. The two limits represent an upside potential of 63.83% or -8.5%.

Earnings Forecast

Analysts estimate the earnings to increase 21.00% in the current quarter to -$0.32, up from the -$0.48 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$1.59, down -8.10% from -$3.13 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.45 and -$0.26. Wall Street estimates earnings per share to be at an average of -$0.22 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 12 over the last 12 months, while SEC filings reveal that there have been 23 insider sales over the same period. Insiders have purchases 1,791,093 shares while those sold by company executives and officers stand at 447,292. The last 3 months have seen insiders trade a total of 0 and 0 in purchases and sales respectively.

Performance Food Group Company (NYSE:PFGC), on the other hand, is trading around $35.78 with a market cap of $4.88B and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $36.83 and spell out a more modest performance – a 2.85% return. Some analysts are even forecasting $0.99 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Performance Food Group Company (PFGC) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

PFGC’s operating margin was negative on the trailing 12 months basis, remaining steady at -0.40%, while the operating expenses over the recent quarter were at $865.6 million. This represented a 85.01% of the company’s total revenues which amounted $5.77 billion. With this in place, we can see that the company’s diluted EPS declined -$1.39 on the year-over-year period, growing to $0.60 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 $7.72 billion from $7.87 billion over the previous quarter. The cash flow from operating activities totaled $623.6 million, significantly higher than the $317.4 million reported in the year-ago quarter. The company’s free cash flow for the quarter was $465.6 million.

Insider activity

Insiders have transacted a total of 39 times at Performance Food Group Company over the last 6 months, with insider purchases undertaken 25 times and accounting for 340,667 shares. Insider sales totaled 100,414 shares over the same period, with these deals completed in 14 transactions. Looking at these numbers, we realize that net purchases over that period are 11.0 shares. Insiders now hold a total of 2.96M shares after the latest sales, with 9.60% net shares purchased.

Major holders

Insiders own 1.70% of the company shares, while shares held by institutions stand at 99.70% with a share float percentage of 129.87M. Investors are also buoyed by the number of investors in a company, with Performance Food Group Company having a total of 366 institutions that hold shares in the company. The top two institutional holders are FMR, LLC with over 19.87 million shares worth more than $579.05 million. As of Jun 29, 2020, FMR, LLC held 14.97% of shares outstanding.

The other major institutional holder is Wellington Management Company, LLP, with the investment firm holding over 18.54 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $540.13 million and represent 13.96% of shares outstanding.