Heat Check: Kindred Biosciences Inc. (KIN) Vs. Designer Brands Inc. (DBI)

Kindred Biosciences Inc. (NASDAQ: KIN) shares are -50.59% down in the year-to-date (YTD) period and have moved 6.08% or $0.24 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +34.94% lower. Comparatively, the stock is -64.88% down YTD and -11.60% over the trailing 3-month period. If we look at the shorter duration, its week performance is 5.28% and 24.70% over the month.

Analyst Recommendations

On November 13, 2019, H.C. Wainwright recommended the KIN stock is a Buy, while earlier, Guggenheim had Downgrade the stock as a Neutral on March 17, 2020. 8 analysts offering the recommendations for the stock have a consensus rating of 2.00 to suggest that the KIN stock is a “Moderate Buy. 0 of the 8 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 7 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $4.19. The forecasts give the Kindred Biosciences Inc. stock a price target range of $14.00 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 70.07% or 53.44%.

Earnings Forecast

For the current year, earnings should grow to an average of -$0.51, up 869.00% from -$1.59 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.31 and -$0.23. Wall Street estimates earnings per share to be at an average of -$0.8 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 7 over the last 12 months, while SEC filings reveal that there have been 13 insider sales over the same period. Insiders have purchases 186,250 shares while those sold by company executives and officers stand at 225,211. The last 3 months have seen insiders trade a total of 95,000 and 174,634 in purchases and sales respectively.

The 10% Owner had earlier sold another 115,136 KIN shares valued at $0.54 million on Jun 26. The shares were sold at $4.71 per share.

Designer Brands Inc. (NYSE:DBI), on the other hand, is trading around $7.43 with a market cap of $518.47M and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $8.07 and spell out a more modest performance – a 7.93% return. Some analysts are even forecasting -$2.7 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

DBI’s operating margin was negative on the trailing 12 months basis, remaining steady at -7.80%, while the operating expenses over the recent quarter were at $297.74 million. This represented a 38.33% of the company’s total revenues which amounted $482.78 million. With this in place, we can see that the company’s diluted EPS declined -$3.00 on the year-over-year period, growing to $0.40 as given in the last earnings report.

In terms of the balance sheet & cash flow as of (Jul 2020), the total assets figure advanced to $2.44 billion from $2.47 billion over the previous quarter. Short term investments amounted to $0.0 while total current assets were at $949.21 million. The cash flow from operating activities totaled -$39.47 million, significantly lower than the -$3.03 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$54.09 million.

Insider activity

Insiders have transacted a total of 23 times at Designer Brands Inc. over the last 6 months, with insider purchases undertaken 16 times and accounting for 346,160 shares. Insider sales totaled 45,254 shares over the same period, with these deals completed in 7 transactions. Looking at these numbers, we realize that net purchases over that period are 9.0 shares. Insiders now hold a total of 5.58M shares after the latest sales, with 13.60% net shares purchased.

Major holders

Insiders own 2.10% of the company shares, while shares held by institutions stand at 97.70% with a share float percentage of 59.33M. Investors are also buoyed by the number of investors in a company, with Designer Brands Inc. having a total of 285 institutions that hold shares in the company.