A Pair of Stock To Put On Your Watchlist: Endo International plc (ENDP), Spectrum Pharmaceuticals Inc. (SPPI)

Endo International plc (NASDAQ: ENDP) shares are -35.39% down in the year-to-date (YTD) period and have moved 8.60% or $0.24 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +45.67% lower. Comparatively, the stock is -57.32% down YTD and -20.68% over the trailing 3-month period. If we look at the shorter duration, its week performance is 4.48% and -11.40% over the month.

Analyst Recommendations

On April 24, 2020, Citigroup recommended the ENDP stock is a Buy, while earlier, Goldman had Initiated the stock as a Sell on July 27, 2020. 14 analysts offering the recommendations for the stock have a consensus rating of 2.90 to suggest that the ENDP stock is a “Moderate Buy. 3 of the 14 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 $3.03 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $5.16. The forecasts give the Endo International plc stock a price target range of $9.00 on the higher side while at least one analyst think the stock could plunge to a low of $2.75. The two limits represent an upside potential of 66.33% or -10.18%.

Earnings Forecast

Analysts estimate the earnings to increase 91.20% in the current quarter to $0.11, down from the $0.6 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $2.12, down -7.80% from $2.38 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between $0.35 and $0.45. Wall Street estimates earnings per share to be at an average of $2.08 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 16 over the last 12 months, while SEC filings reveal that there have been 69 insider sales over the same period. Insiders have purchases 712,020 shares while those sold by company executives and officers stand at 1,297,705. The last 3 months have seen insiders trade a total of 196,560 and 277,778 in purchases and sales respectively.

KIMMEL ROGER H, a Director at the company, sold 25,000 shares worth $0.1 million at $4.09 per share on Sep 16. The Director had earlier sold another 30,000 ENDP shares valued at $0.12 million on Sep 16. The shares were sold at $4.09 per share.

Spectrum Pharmaceuticals Inc. (NASDAQ:SPPI), on the other hand, is trading around $4.21 with a market cap of $577.11M and analyst research firms have a positive stance on its shares. Some analysts are even forecasting -$1.38 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

SPPI’s operating expenses over the recent quarter were at -$32.22 million. This represented a 188.3% of the company’s total revenues which amounted $36.49 million. With this in place, we can see that the company’s diluted EPS declined -$0.29 on the year-over-year period, shrinking to -$0.26 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 $194.25 million from $215.99 million over the previous quarter. Short term investments amounted to $71.39 million while total current assets were at $175.04 million. The cash flow from operating activities totaled -$60.39 million, significantly higher than the -$76.35 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$64.46 million.

Insider activity

Insiders have transacted a total of 37 times at Spectrum Pharmaceuticals Inc. over the last 6 months, with insider purchases undertaken 14 times and accounting for 1,180,857 shares. Insider sales totaled 77,408 shares over the same period, with these deals completed in 23 transactions. Looking at these numbers, we realize that net purchases over that period are -9.0 shares. Insiders now hold a total of 7.2M shares after the latest sales, with 18.10% net shares purchased.

Major holders

Insiders own 1.60% of the company shares, while shares held by institutions stand at 52.90% with a share float percentage of 104.41M. Investors are also buoyed by the number of investors in a company, with Spectrum Pharmaceuticals Inc. having a total of 241 institutions that hold shares in the company.