Stocks To Watch With Trade Uncertainty This High – Pinduoduo Inc. (PDD), Ocular Therapeutix Inc. (OCUL)

Pinduoduo Inc. (NASDAQ: PDD) shares are 135.85% up in the year-to-date (YTD) period and have moved 0.43% or $0.38 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +195.36% lower. Comparatively, the stock is -9.86% down YTD and 35.64% over the trailing 3-month period. If we look at the shorter duration, its week performance is 6.19% and 5.02% over the month.

Analyst Recommendations

On August 24, 2020, UBS recommended the PDD stock is a Neutral, while earlier, Barclays had Reiterated the stock as a Equal Weight on August 24, 2020. 37 analysts offering the recommendations for the stock have a consensus rating of 2.50 to suggest that the PDD stock is a “Moderate Buy. 3 of the 37 analysts rate the stock as a “Sell”, while 1 has rated it as “Underweight”. 14 recommend buying, with 4 rating it as an Overweight.

The stock currently trades at $89.20 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $87.94. The forecasts give the Pinduoduo Inc. stock a price target range of $1036.92 on the higher side while at least one analyst think the stock could plunge to a low of $276.54. The two limits represent an upside potential of 91.4% or 67.74%.

Earnings Forecast

Analysts estimate the earnings to increase 95.00% in the current quarter to -$0.15, up from the -$0.2 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$0.59, up 64.10% from -$0.52 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.18 and $0.13. Wall Street estimates earnings per share to be at an average of $0.46 for the next year.

Ocular Therapeutix Inc. (NASDAQ:OCUL), on the other hand, is trading around $8.75 with a market cap of $591.76M and analyst research firms have a negative stance on its shares. Analysts predict that the stock will reach $11.50 and spell out a more modest performance – a 23.91% return. Some analysts are even forecasting -$1.43 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

OCUL’s operating expenses over the recent quarter were at $19.45 million. This represented a -1139.83% of the company’s total revenues which amounted $1.57 million. With this in place, we can see that the company’s diluted EPS declined -$0.64 on the year-over-year period, shrinking to -$0.57 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 $107.26 million from $72.86 million over the previous quarter. The cash flow from operating activities totaled -$33.65 million, significantly higher than the -$38.57 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$34.02 million.

Insider activity

Insiders have transacted a total of 8 times at Ocular Therapeutix Inc. over the last 6 months, with insider purchases undertaken 8 times and accounting for 1,778,584 shares. Insider sales totaled 0 shares over the same period, with these deals completed in 0 transactions. Looking at these numbers, we realize that net purchases over that period are 8.0 shares. Insiders now hold a total of 6.23M shares after the latest sales, with 42.20% net shares purchased.

Major holders

Insiders own 9.89% of the company shares, while shares held by institutions stand at 62.10% with a share float percentage of 54.21M. Investors are also buoyed by the number of investors in a company, with Ocular Therapeutix Inc. having a total of 112 institutions that hold shares in the company. The top two institutional holders are Opaleye Management Inc. with over 5.98 million shares worth more than $49.85 million. As of Jun 29, 2020, Opaleye Management Inc. held 9.51% of shares outstanding.

The other major institutional holder is Summer Road LLC, with the investment firm holding over 5.62 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $46.8 million and represent 8.92% of shares outstanding.