Are These Stocks Nearing A Big Breakout? – CBL & Associates Properties Inc. (CBL), Carnival Corporation & Plc (CUK)

CBL & Associates Properties Inc. (NYSE: CBL) shares are -82.00% down in the year-to-date (YTD) period and have moved 2.89% or $0.01 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +34.90% lower. Comparatively, the stock is -82.50% down YTD and -30.67% over the trailing 3-month period. If we look at the shorter duration, its week performance is -1.56% and -6.16% over the month.

Analyst Recommendations

On December 19, 2018, JP Morgan recommended the CBL stock is a Underweight, while earlier, BTIG Research had Upgrade the stock as a Neutral on May 31, 2019. 5 analysts offering the recommendations for the stock have a consensus rating of 4.20 to suggest that the CBL stock is a “Moderate Sell. 4 of the 5 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 $0.19. The forecasts give the CBL & Associates Properties Inc. stock a price target range of $0.25 on the higher side while at least one analyst think the stock could plunge to a low of $0.15. The two limits represent an upside potential of 24.0% or -26.67%.

Earnings Forecast

Analysts estimate the earnings to decrease -33.30% in the current quarter to -$0.19, up from the -$0.26 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$1.34, down -17.80% from -$0.74 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.26 and -$0.06. Wall Street estimates earnings per share to be at an average of -$0.55 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 31 over the last 12 months, while SEC filings reveal that there have been 14 insider sales over the same period. Insiders have purchases 38,157,990 shares while those sold by company executives and officers stand at 562,405. The last 3 months have seen insiders trade a total of 1,115,248 and 0 in purchases and sales respectively.

LEBOVITZ CHARLES B, a Chairman of the Board at the company, sold 944,485 shares worth $0.19 million at $0.20 per share on May 15. The Chairman of the Board had earlier sold another 400 CBL shares valued at $85.0 on May 15. The shares were sold at $0.21 per share. LEBOVITZ STEPHEN D (CEO) sold 31,818 shares at $0.20 per share on May 15 for a total of $6421.0 while LEBOVITZ STEPHEN D, (CEO) sold 310,000 shares on May 15 for $61380.0 with each share fetching $0.20.

Carnival Corporation & Plc (NYSE:CUK), on the other hand, is trading around $14.49 with a market cap of $13.40B and analyst research firms have a positive stance on its shares. Some analysts are even forecasting -$6.59 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Carnival Corporation & Plc (CUK) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

CUK’s operating margin was positive on the trailing 12 months basis, remaining steady at 15.70%, while the operating expenses over the recent quarter were at $3.02 billion. This represented a -308.38% of the company’s total revenues which amounted $740.0 million. With this in place, we can see that the company’s diluted EPS declined -$6.07 on the year-over-year period, growing to $0.65 as given in the last earnings report.

In terms of the balance sheet & cash flow as of (Aug 2020), the total assets figure advanced to $49.82 billion from $46.94 billion over the previous quarter. The cash flow from operating activities totaled -$1.8 billion, significantly lower than the $3.17 billion reported in the year-ago quarter. The company’s free cash flow for the quarter was -$3.47 billion.

Insider activity

Insiders have transacted a total of 0 times at Carnival Corporation & Plc 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.

Major holders

Investors are also buoyed by the number of investors in a company, with Carnival Corporation & Plc having a total of 132 institutions that hold shares in the company. The top two institutional holders are Goldman Sachs Group, Inc. with over 1.43 million shares worth more than $17.96 million. As of Jun 29, 2020, Goldman Sachs Group, Inc. held 15.66% of shares outstanding.

The other major institutional holder is Renaissance Technologies, LLC, with the investment firm holding over 1.34 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $16.85 million and represent 14.70% of shares outstanding.