Stocks that are not receiving major attention: Wave Life Sciences Ltd. (WVE), Ruth’s Hospitality Group Inc. (RUTH)

Wave Life Sciences Ltd. (NASDAQ: WVE) shares are 55.71% up in the year-to-date (YTD) period and have moved 5.49% or $0.65 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +88.80% lower. Comparatively, the stock is -27.61% down YTD and 24.92% over the trailing 3-month period. If we look at the shorter duration, its week performance is 7.59% and 40.22% over the month.

Analyst Recommendations

On November 01, 2019, Guggenheim recommended the WVE stock is a Buy, while earlier, SVB Leerink had Downgrade the stock as a Mkt Perform on December 31, 2019. 7 analysts offering the recommendations for the stock have a consensus rating of 2.10 to suggest that the WVE stock is a “Moderate Buy. 0 of the 7 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 4 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $12.48 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $16.71. The forecasts give the Wave Life Sciences Ltd. stock a price target range of $21.00 on the higher side while at least one analyst think the stock could plunge to a low of $8.00. The two limits represent an upside potential of 40.57% or -56.0%.

Earnings Forecast

Analysts estimate the earnings to decrease -18.60% in the current quarter to -$0.71, up from the -$1.48 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$3.67, up 106.80% from -$5.72 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$1.06 and -$0.38. Wall Street estimates earnings per share to be at an average of -$1.7 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 2 over the last 12 months, while SEC filings reveal that there have been 13 insider sales over the same period. Insiders have purchases 106,000 shares while those sold by company executives and officers stand at 204,595. The last 3 months have seen insiders trade a total of 100,000 and 147,577 in purchases and sales respectively.

BOLNO PAUL, a President and CEO at the company, sold 147,577 shares worth $1.52 million at $10.30 per share on Jul 02. The President and CEO had earlier sold another 25,000 WVE shares valued at $0.3 million on Aug 25. The shares were sold at $12.00 per share. Panzara Michael A. (Chief Medical Officer) sold 2,981 shares at $7.85 per share on Feb 18 for a total of $23401.0 while BOLNO PAUL, (President and CEO) sold 11,451 shares on Feb 18 for $89890.0 with each share fetching $7.85.

Ruth’s Hospitality Group Inc. (NASDAQ:RUTH), on the other hand, is trading around $11.02 with a market cap of $347.13M and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $8.63 and spell out a less modest performance – a -27.69% return. Some analysts are even forecasting -$0.62 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Ruth’s Hospitality Group Inc. (RUTH) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

RUTH’s operating margin was negative on the trailing 12 months basis, remaining steady at -1.10%, while the operating expenses over the recent quarter were at $18.48 million. This represented a 34.98% of the company’s total revenues which amounted $28.42 million. With this in place, we can see that the company’s diluted EPS declined -$0.59 on the year-over-year period, growing to $0.31 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 $567.03 million from $535.86 million over the previous quarter. The cash flow from operating activities totaled -$2.73 million, significantly lower than the $23.16 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$10.93 million.

Insider activity

Insiders have transacted a total of 20 times at Ruth’s Hospitality Group Inc. over the last 6 months, with insider purchases undertaken 3 times and accounting for 938 shares. Insider sales totaled 148,302 shares over the same period, with these deals completed in 17 transactions. Looking at these numbers, we realize that net purchases over that period are -14.0 shares. Insiders now hold a total of 2.66M shares after the latest sales, with 7.00% net shares purchased.

Major holders

Insiders own 6.30% of the company shares, while shares held by institutions stand at 65.40% with a share float percentage of 32.11M. Investors are also buoyed by the number of investors in a company, with Ruth’s Hospitality Group Inc. having a total of 242 institutions that hold shares in the company. The top two institutional holders are Blackrock Inc. with over 4.69 million shares worth more than $38.3 million. As of Jun 29, 2020, Blackrock Inc. held 13.44% of shares outstanding.

The other major institutional holder is Vanguard Group, Inc. (The), with the investment firm holding over 2.11 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $17.25 million and represent 6.05% of shares outstanding.