Stocks That Should Surprise the Market: Redfin Corporation (RDFN), Uxin Limited (UXIN)

Redfin Corporation (NASDAQ: RDFN) shares are 128.52% up in the year-to-date (YTD) period and have moved 4.23% or $1.96 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +401.66% lower. Comparatively, the stock is -3.63% down YTD and 63.32% over the trailing 3-month period. If we look at the shorter duration, its week performance is 1.83% and 12.43% over the month.

Analyst Recommendations

On July 28, 2020, Susquehanna recommended the RDFN stock is a Negative, while earlier, Compass Point had Downgrade the stock as a Neutral on August 03, 2020. 17 analysts offering the recommendations for the stock have a consensus rating of 2.70 to suggest that the RDFN stock is a “Moderate Buy. 2 of the 17 analysts rate the stock as a “Sell”, while 1 has rated it as “Underweight”. 5 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $48.31 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $40.85. The forecasts give the Redfin Corporation stock a price target range of $50.00 on the higher side while at least one analyst think the stock could plunge to a low of $25.00. The two limits represent an upside potential of 3.38% or -93.24%.

Earnings Forecast

Analysts estimate the earnings to increase 65.20% in the current quarter to $0.2, up from the $0.07 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$0.5, up 6.90% from -$0.88 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.11 and $0.16. Wall Street estimates earnings per share to be at an average of -$0.35 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 67 over the last 12 months, while SEC filings reveal that there have been 93 insider sales over the same period. Insiders have purchases 596,056 shares while those sold by company executives and officers stand at 794,384. The last 3 months have seen insiders trade a total of 145,214 and 225,141 in purchases and sales respectively.

KELMAN GLENN, a President and CEO at the company, sold 20,000 shares worth $0.87 million at $43.58 per share on Aug 12. The Director had earlier sold another 119,250 RDFN shares valued at $5.29 million on Aug 17. The shares were sold at $44.32 per share. KELMAN GLENN (President and CEO) sold 20,000 shares at $42.81 per share on Aug 11 for a total of $0.86 million while KELMAN GLENN, (President and CEO) sold 20,000 shares on Aug 10 for $0.84 million with each share fetching $42.20.

Uxin Limited (NASDAQ:UXIN), on the other hand, is trading around $0.91 with a market cap of $296.40M and analyst research firms have a negative stance on its shares. Some analysts are even forecasting $0 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

UXIN’s operating expenses over the recent quarter were at $308.39 million. This represented a -2002.6% of the company’s total revenues which amounted $14.67 million. With this in place, we can see that the company’s diluted EPS declined -$0.97 on the year-over-year period, growing to $6.90 as given in the last earnings report.

In terms of the balance sheet & cash flow as of (Jun 2020), the total assets figure advanced to $373.88 million from $984.53 million over the previous quarter. The cash flow from operating activities totaled -$58.08 million, significantly higher than the -$332.4 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$58.13 million.

Major holders

Investors are also buoyed by the number of investors in a company, with Uxin Limited having a total of 43 institutions that hold shares in the company. The top two institutional holders are Warburg Pincus LLC with over 37.4 million shares worth more than $53.48 million. As of Jun 29, 2020, Warburg Pincus LLC held 98.42% of shares outstanding.

The other major institutional holder is Wells Fargo & Company, with the investment firm holding over 10.07 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $14.41 million and represent 26.51% of shares outstanding.