Stocks That Should Surprise the Market: FTS International Inc. (FTSI), NovaBay Pharmaceuticals Inc. (NBY)

FTS International Inc. (AMEX: FTSI) shares are -78.17% down in the year-to-date (YTD) period and have moved 37.58% or $1.24 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +349.50% lower. Comparatively, the stock is -86.24% down YTD and -26.54% over the trailing 3-month period. If we look at the shorter duration, its week performance is -8.47% and -25.45% over the month.

Analyst Recommendations

On March 16, 2020, Morgan Stanley recommended the FTSI stock is a Underweight, while earlier, Barclays had Downgrade the stock as a Underweight on March 19, 2020. 3 analysts offering the recommendations for the stock have a consensus rating of 3.40 to suggest that the FTSI stock is a “Hold. 1 of the 3 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 0 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $4.54. The forecasts give the FTS International Inc. stock a price target range of $8.00 on the higher side while at least one analyst think the stock could plunge to a low of $5.00. The two limits represent an upside potential of 43.25% or 9.2%.

Earnings Forecast

Analysts estimate the earnings to increase 3.10% in the current quarter to -$6.67, down from the -$2.6 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$24.2, down -68.00% from -$2.4 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$7.26 and -$5.04. Wall Street estimates earnings per share to be at an average of -$17.94 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 6 over the last 12 months, while SEC filings reveal that there have been 4 insider sales over the same period. Insiders have purchases 712,500 shares while those sold by company executives and officers stand at 110,142. The last 3 months have seen insiders trade a total of 0 and 0 in purchases and sales respectively.

The Director had earlier bought another 52,500 FTSI shares valued at $50017.0 on Feb 28. The shares were bought at $0.95 per share.

NovaBay Pharmaceuticals Inc. (AMEX:NBY), on the other hand, is trading around $0.94 with a market cap of $37.61M and analyst research firms have a positive stance on its shares. Some analysts are even forecasting -$0.25 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

NBY’s operating margin was negative on the trailing 12 months basis, remaining steady at -71.20%, while the operating expenses over the recent quarter were at $3.06 million. This represented a 23.32% of the company’s total revenues which amounted $3.98 million. With this in place, we can see that the company’s diluted EPS declined -$0.15 on the year-over-year period, shrinking to -$0.14 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 $13.27 million from $9.47 million over the previous quarter. The cash flow from operating activities totaled -$1.91 million, significantly higher than the -$5.0 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$1.91 million.

Insider activity

Insiders have transacted a total of 2 times at NovaBay Pharmaceuticals Inc. over the last 6 months, with insider purchases undertaken 1 times and accounting for 20,000 shares. Insider sales totaled 20,000 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 0.0 shares. Insiders now hold a total of 17.22M shares after the latest sales, with -6.90% net shares purchased.

Major holders

Insiders own 10.00% of the company shares, while shares held by institutions stand at 5.10% with a share float percentage of 32.52M. Investors are also buoyed by the number of investors in a company, with NovaBay Pharmaceuticals Inc. having a total of 18 institutions that hold shares in the company.