Are These Stocks Nearing A Big Breakout? – EnLink Midstream LLC (ENLC), Surface Oncology Inc. (SURF)

EnLink Midstream LLC (NYSE: ENLC) shares are -50.24% down in the year-to-date (YTD) period and have moved 3.74% or $0.11 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +246.59% lower. Comparatively, the stock is -52.93% down YTD and 23.98% over the trailing 3-month period. If we look at the shorter duration, its week performance is 4.10% and 23.48% over the month.

Analyst Recommendations

On March 24, 2020, Barclays recommended the ENLC stock is a Underweight, while earlier, Credit Suisse had Downgrade the stock as a Underperform on April 02, 2020. 10 analysts offering the recommendations for the stock have a consensus rating of 3.10 to suggest that the ENLC stock is a “Hold. 4 of the 10 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 2 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $3.05 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $2.97. The forecasts give the EnLink Midstream LLC stock a price target range of $5.00 on the higher side while at least one analyst think the stock could plunge to a low of $1.00. The two limits represent an upside potential of 39.0% or -205.0%.

Earnings Forecast

Analysts estimate the earnings to decrease -400.00% in the current quarter to $0.01, down from the $0.02 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$0.18, down -24.80% from -$2.41 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.02 and $0.03. Wall Street estimates earnings per share to be at an average of -$0.02 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 21 over the last 12 months, while SEC filings reveal that there have been 20 insider sales over the same period. Insiders have purchases 1,917,428 shares while those sold by company executives and officers stand at 849,907. The last 3 months have seen insiders trade a total of 243,244 and 222,296 in purchases and sales respectively.

Vann Kyle D, a Director at the company, bought 10,000 shares worth $48700.0 at $4.87 per share on Nov 20. The Director had earlier bought another 40,000 ENLC shares valued at $0.12 million on Aug 07. The shares were bought at $2.98 per share.

Surface Oncology Inc. (NASDAQ:SURF), on the other hand, is trading around $6.19 with a market cap of $211.88M and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $10.75 and spell out a more modest performance – a 42.42% return. Some analysts are even forecasting -$0.7 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

SURF’s operating expenses over the recent quarter were at -$14.54 million. With this in place, we can see that the company’s diluted EPS declined -$0.44 on the year-over-year period, shrinking to -$0.64 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 $154.53 million from $131.22 million over the previous quarter. Short term investments amounted to $19.41 million while total current assets were at $117.58 million. The cash flow from operating activities totaled -$32.05 million, significantly higher than the -$32.41 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$32.07 million.

Insider activity

Insiders have transacted a total of 1 times at Surface Oncology Inc. over the last 6 months, with insider purchases undertaken 0 times and accounting for 0 shares. Insider sales totaled 420,000 shares over the same period, with these deals completed in 1 transactions. Looking at these numbers, we realize that net purchases over that period are -1.0 shares. Insiders now hold a total of 6.69M shares after the latest sales, with -5.80% net shares purchased.

Major holders

Insiders own 0.20% of the company shares, while shares held by institutions stand at 68.60% with a share float percentage of 16.71M. Investors are also buoyed by the number of investors in a company, with Surface Oncology Inc. having a total of 46 institutions that hold shares in the company.