Don’t Be A Stock Market Victim: Amyris Inc. (AMRS), Verastem Inc. (VSTM)

Amyris Inc. (NASDAQ: AMRS) shares are 9.39% up in the year-to-date (YTD) period and have moved 5.96% or $0.19 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +141.43% lower. Comparatively, the stock is -44.32% down YTD and -36.82% over the trailing 3-month period. If we look at the shorter duration, its week performance is -0.29% and -22.83% over the month.

Analyst Recommendations

On November 14, 2018, B. Riley FBR recommended the AMRS stock is a Buy, while earlier, Oppenheimer had Initiated the stock as a Outperform on December 12, 2019. 2 analysts offering the recommendations for the stock have a consensus rating of 1.50 to suggest that the AMRS stock is a “Strong Buy. 0 of the 2 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 $3.38. The forecasts give the Amyris Inc. stock a price target range of $11.00 on the higher side while at least one analyst think the stock could plunge to a low of $9.00. The two limits represent an upside potential of 69.27% or 62.44%.

Earnings Forecast

Analysts estimate the earnings to decrease -194.70% in the current quarter to -$0.17, up from the -$0.51 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$1.23, up 20.40% from -$2.67 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.06 and -$0.05. Wall Street estimates earnings per share to be at an average of -$0.32 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 13 insider sales over the same period. Insiders have purchases 40,412,972 shares while those sold by company executives and officers stand at 314,242. The last 3 months have seen insiders trade a total of 369,960 and 71,304 in purchases and sales respectively.

DOERR L JOHN, a Director at the company, bought 52,785 shares worth $0.18 million at $3.41 per share on Feb 19. The Director had earlier bought another 3,689,225 AMRS shares valued at $11.07 million on Jun 05. The shares were bought at $3.00 per share. Melo John (President and CEO) sold 52,875 shares at $3.41 per share on Feb 19 for a total of $0.18 million while DOERR L JOHN, (Director) bought 10,505,652 shares on Jan 31 for $30.15 million with each share fetching $2.87.

Verastem Inc. (NASDAQ:VSTM), on the other hand, is trading around $1.32 with a market cap of $213.60M and analyst research firms have a positive stance on its shares. Some analysts are even forecasting -$0.45 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

VSTM’s operating expenses over the recent quarter were at $25.57 million. This represented a -493.71% of the company’s total revenues which amounted $4.31 million. With this in place, we can see that the company’s diluted EPS declined -$0.14 on the year-over-year period, shrinking to -$0.57 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 $198.53 million from $208.15 million over the previous quarter. Short term investments amounted to $0.0 while total current assets were at $144.59 million. The cash flow from operating activities totaled -$56.55 million, significantly higher than the -$73.45 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$56.58 million.

Insider activity

Insiders have transacted a total of 8 times at Verastem Inc. over the last 6 months, with insider purchases undertaken 6 times and accounting for 1,268,970 shares. Insider sales totaled 2,462,600 shares over the same period, with these deals completed in 2 transactions. Looking at these numbers, we realize that net purchases over that period are 4.0 shares. Insiders now hold a total of 11.4M shares after the latest sales, with 61.10% net shares purchased.

Major holders

Insiders own 1.00% of the company shares, while shares held by institutions stand at 48.60% with a share float percentage of 158.11M. Investors are also buoyed by the number of investors in a company, with Verastem Inc. having a total of 92 institutions that hold shares in the company. The top two institutional holders are Blackrock Inc. with over 11.08 million shares worth more than $19.06 million. As of Jun 29, 2020, Blackrock Inc. held 6.54% of shares outstanding.

The other major institutional holder is RA Capital Management, L.P., with the investment firm holding over 9.13 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $15.7 million and represent 5.38% of shares outstanding.