A focus on opportunistic stocks: Red Robin Gourmet Burgers Inc. (RRGB), Centennial Resource Development Inc. (CDEV)

Red Robin Gourmet Burgers Inc. (NASDAQ: RRGB) shares are -66.05% down in the year-to-date (YTD) period and have moved 16.17% or $1.56 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +177.48% lower. Comparatively, the stock is -69.94% down YTD and -19.18% over the trailing 3-month period. If we look at the shorter duration, its week performance is 28.85% and 23.87% over the month.

Analyst Recommendations

On August 27, 2019, BofA/Merrill recommended the RRGB stock is a Underperform, while earlier, Maxim Group had Reiterated the stock as a Buy on November 07, 2019. 7 analysts offering the recommendations for the stock have a consensus rating of 3.10 to suggest that the RRGB stock is a “Hold. 0 of the 7 analysts rate the stock as a “Sell”, while 1 has rated it as “Underweight”. 0 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $11.21 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $16.17. The forecasts give the Red Robin Gourmet Burgers 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 $10.00. The two limits represent an upside potential of 6.58% or -12.1%.

Earnings Forecast

Analysts estimate the earnings to decrease -1.20% in the current quarter to -$1.63, down from the -$0.24 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$11.58, down -30.80% from $0.62 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$1.02 and -$0.08. Wall Street estimates earnings per share to be at an average of -$1.64 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 37 over the last 12 months, while SEC filings reveal that there have been 18 insider sales over the same period. Insiders have purchases 295,901 shares while those sold by company executives and officers stand at 567,407. The last 3 months have seen insiders trade a total of 0 and 559,208 in purchases and sales respectively.

Vintage Capital Management LLC, a 10% Owner at the company, sold 559,208 shares worth $10.33 million at $18.48 per share on Jun 09. The 10% Owner had earlier sold another 300,692 RRGB shares valued at $4.44 million on Jun 10. The shares were sold at $14.76 per share. Schweinfurth Lynn S (Chief Financial Officer) bought 10,000 shares at $8.85 per share on Mar 13 for a total of $88500.0 while LUMPKIN STEVE, (Director) bought 10,000 shares on Mar 13 for $85000.0 with each share fetching $8.50.

Centennial Resource Development Inc. (NASDAQ:CDEV), on the other hand, is trading around $0.78 with a market cap of $213.79M and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $1.21 and spell out a more modest performance – a 35.54% return. Some analysts are even forecasting -$2.3 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Centennial Resource Development Inc. (CDEV) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

CDEV’s operating margin was negative on the trailing 12 months basis, remaining steady at -67.70%, while the operating expenses over the recent quarter were at $135.31 million. This represented a -49.5% of the company’s total revenues which amounted $90.51 million. With this in place, we can see that the company’s diluted EPS inclined $0.02 on the year-over-year period, growing to $0.07 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 $4.02 billion from $4.11 billion over the previous quarter. The cash flow from operating activities totaled $84.5 million, significantly lower than the $280.19 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$193.81 million.

Insider activity

Insiders have transacted a total of 41 times at Centennial Resource Development Inc. over the last 6 months, with insider purchases undertaken 33 times and accounting for 26,819,536 shares. Insider sales totaled 386,744 shares over the same period, with these deals completed in 8 transactions. Looking at these numbers, we realize that net purchases over that period are 25.0 shares. Insiders now hold a total of 5.39M shares after the latest sales, with -134.20% net shares purchased.

Major holders

Insiders own 3.50% of the company shares, while shares held by institutions stand at 70.30% with a share float percentage of 174.66M. Investors are also buoyed by the number of investors in a company, with Centennial Resource Development Inc. having a total of 244 institutions that hold shares in the company. The top two institutional holders are Riverstone Holdings LLC with over 83.46 million shares worth more than $74.28 million. As of Jun 29, 2020, Riverstone Holdings LLC held 29.99% of shares outstanding.

The other major institutional holder is Vanguard Group, Inc. (The), with the investment firm holding over 14.82 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $13.19 million and represent 5.32% of shares outstanding.