A focus on opportunistic stocks: OneSpaWorld Holdings Limited (OSW), Northern Oil and Gas Inc. (NOG)

OneSpaWorld Holdings Limited (NASDAQ: OSW) shares are -57.24% down in the year-to-date (YTD) period and have moved 6.51% or $0.44 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +193.88% lower. Comparatively, the stock is -57.80% down YTD and 9.09% over the trailing 3-month period. If we look at the shorter duration, its week performance is 24.57% and 22.87% over the month.

Analyst Recommendations

On April 30, 2020, William Blair recommended the OSW stock is a Outperform, while earlier, Jefferies had Upgrade the stock as a Buy on June 09, 2020. 3 analysts offering the recommendations for the stock have a consensus rating of 1.00 to suggest that the OSW stock is a “Strong 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 $7.20 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $10.00. The forecasts give the OneSpaWorld Holdings Limited stock a price target range of $10.00 on the higher side while at least one analyst think the stock could plunge to a low of $10.00. The two limits represent an upside potential of 28.0% or 28.0%.

Earnings Forecast

Analysts estimate the earnings to decrease -94.70% in the current quarter to -$0.26, down from the $0.11 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$0.83, down -75.50% from $0.44 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.25 and -$0.14. Wall Street estimates earnings per share to be at an average of -$0.08 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 1 insider sales over the same period. Insiders have purchases 21,400,322 shares while those sold by company executives and officers stand at 25,000. The last 3 months have seen insiders trade a total of 21,250,322 and 0 in purchases and sales respectively.

LAZARUS STEPHEN, a CFO and COO at the company, bought 75,000 shares worth $0.49 million at $6.53 per share on Mar 11. The Executive Chairman & Director had earlier bought another 75,000 OSW shares valued at $0.39 million on Mar 13. The shares were bought at $5.17 per share.

Northern Oil and Gas Inc. (AMEX:NOG), on the other hand, is trading around $0.72 with a market cap of $309.74M and analyst research firms have a positive stance on its shares. Some analysts are even forecasting $0.16 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Northern Oil and Gas Inc. (NOG) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

NOG’s operating expenses over the recent quarter were at $804.74 million. This represented a 1648.43% of the company’s total revenues which amounted -$51.97 million. With this in place, we can see that the company’s diluted EPS declined -$2.17 on the year-over-year period, growing to $0.12 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 $1.26 billion from $2.24 billion over the previous quarter. Short term investments amounted to $156.44 million while total current assets were at $205.09 million. The cash flow from operating activities totaled $202.24 million, significantly higher than the $198.3 million reported in the year-ago quarter. The company’s free cash flow for the quarter was $12.5 million.

Insider activity

Insiders have transacted a total of 45 times at Northern Oil and Gas Inc. over the last 6 months, with insider purchases undertaken 39 times and accounting for 8,495,216 shares. Insider sales totaled 191,835 shares over the same period, with these deals completed in 6 transactions. Looking at these numbers, we realize that net purchases over that period are 33.0 shares. Insiders now hold a total of 134.18M shares after the latest sales, with 8.50% net shares purchased.

Major holders

Insiders own 5.50% of the company shares, while shares held by institutions stand at 47.80% with a share float percentage of 285.66M. Investors are also buoyed by the number of investors in a company, with Northern Oil and Gas Inc. having a total of 204 institutions that hold shares in the company.