Don’t Be A Stock Market Victim: Menlo Therapeutics Inc. (MNLO), Patterson-UTI Energy Inc. (PTEN)

Menlo Therapeutics Inc. (NASDAQ: MNLO) shares are -68.10% down in the year-to-date (YTD) period and have moved 3.50% or $0.05 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +48.00% lower. Comparatively, the stock is -80.21% down YTD and -37.55% over the trailing 3-month period. If we look at the shorter duration, its week performance is -2.63% and -9.76% over the month.

Analyst Recommendations

On March 25, 2020, Barclays recommended the MNLO stock is a Overweight, while earlier, Northland Capital had Initiated the stock as a Outperform on May 21, 2020. 8 analysts offering the recommendations for the stock have a consensus rating of 1.90 to suggest that the MNLO stock is a “Strong Buy. 0 of the 8 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 8 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $1.48. The forecasts give the Menlo Therapeutics Inc. stock a price target range of $15.00 on the higher side while at least one analyst think the stock could plunge to a low of $3.00. The two limits represent an upside potential of 90.13% or 50.67%.

Earnings Forecast

Analysts estimate the earnings to increase 44.00% in the current quarter to -$0.17, up from the -$0.7 reported in the same quarter a year ago. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.2 and -$0.09. Wall Street estimates earnings per share to be at an average of -$0.38 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 43 over the last 12 months, while SEC filings reveal that there have been 16 insider sales over the same period. Insiders have purchases 6,524,044 shares while those sold by company executives and officers stand at 190,519. The last 3 months have seen insiders trade a total of 2,777,702 and 11,980 in purchases and sales respectively.

The 10% Owner had earlier bought another 2,702,702 MNLO shares valued at $5.0 million on Jun 09. The shares were bought at $1.85 per share.

Patterson-UTI Energy Inc. (NASDAQ:PTEN), on the other hand, is trading around $3.97 with a market cap of $721.51M and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $3.10 and spell out a less modest performance – a -28.06% return. Some analysts are even forecasting -$2.25 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Patterson-UTI Energy Inc. (PTEN) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

PTEN’s operating margin was negative on the trailing 12 months basis, remaining steady at -58.40%, while the operating expenses over the recent quarter were at $0.33 million. This represented a 99.87% of the company’s total revenues which amounted $250.38 million. With this in place, we can see that the company’s diluted EPS declined -$0.81 on the year-over-year period, shrinking to -$0.24 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 $3.62 billion from $3.87 billion over the previous quarter. The cash flow from operating activities totaled $219.33 million, significantly lower than the $365.3 million reported in the year-ago quarter. The company’s free cash flow for the quarter was $97.73 million.

Insider activity

Insiders have transacted a total of 23 times at Patterson-UTI Energy Inc. over the last 6 months, with insider purchases undertaken 17 times and accounting for 1,348,573 shares. Insider sales totaled 30,197 shares over the same period, with these deals completed in 6 transactions. Looking at these numbers, we realize that net purchases over that period are 11.0 shares. Insiders now hold a total of 4.97M shares after the latest sales, with 37.20% net shares purchased.

Major holders

Insiders own 3.10% of the company shares with a share float percentage of 181.84M. Investors are also buoyed by the number of investors in a company, with Patterson-UTI Energy Inc. having a total of 370 institutions that hold shares in the company.