Summarizing The Case For BioDelivery Sciences International Inc. (BDSI), Olin Corporation (OLN)

BioDelivery Sciences International Inc. (NASDAQ: BDSI) shares are -39.72% down in the year-to-date (YTD) period and have moved -3.54% or -$0.14 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +33.68% lower. Comparatively, the stock is -40.38% down YTD and -20.95% over the trailing 3-month period. If we look at the shorter duration, its week performance is -19.28% and -8.63% over the month.

Analyst Recommendations

On January 09, 2020, Piper Sandler recommended the BDSI stock is a Overweight, while earlier, Northland Capital had Initiated the stock as a Outperform on April 22, 2020. 8 analysts offering the recommendations for the stock have a consensus rating of 1.70 to suggest that the BDSI stock is a “Strong Buy. 0 of the 8 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 8 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $3.81. The forecasts give the BioDelivery Sciences International Inc. stock a price target range of $9.00 on the higher side while at least one analyst think the stock could plunge to a low of $7.00. The two limits represent an upside potential of 57.67% or 45.57%.

Earnings Forecast

Analysts estimate the earnings to decrease -75.00% in the current quarter to $0.06, up from the $0 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $0.17, up 40.20% from -$0.18 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between $0.04 and $0.09. Wall Street estimates earnings per share to be at an average of $0.43 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 35 over the last 12 months, while SEC filings reveal that there have been 52 insider sales over the same period. Insiders have purchases 6,811,143 shares while those sold by company executives and officers stand at 7,807,393. The last 3 months have seen insiders trade a total of 156,318 and 263,000 in purchases and sales respectively.

Watson W. Mark, a Director at the company, sold 13,000 shares worth $67340.0 at $5.18 per share on Aug 17. The Director had earlier sold another 50,000 BDSI shares valued at $0.25 million on Aug 18. The shares were sold at $4.99 per share. Sirgo Mark A (Director) sold 115,000 shares at $4.90 per share on Aug 14 for a total of $0.56 million while Sirgo Mark A, (Director) sold 85,000 shares on Aug 13 for $0.39 million with each share fetching $4.53.

Olin Corporation (NYSE:OLN), on the other hand, is trading around $11.68 with a market cap of $1.84B and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $12.73 and spell out a more modest performance – a 8.25% return. Some analysts are even forecasting -$1.54 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

OLN’s operating margin was negative on the trailing 12 months basis, remaining steady at -1.60%, while the operating expenses over the recent quarter were at $102.0 million. This represented a 91.78% of the company’s total revenues which amounted $1.24 billion. With this in place, we can see that the company’s diluted EPS declined -$0.76 on the year-over-year period, shrinking to -$0.12 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 $8.98 billion from $9.18 billion over the previous quarter. The cash flow from operating activities totaled $55.4 million, significantly lower than the $236.1 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$111.1 million.

Insider activity

Insiders have transacted a total of 19 times at Olin Corporation over the last 6 months, with insider purchases undertaken 18 times and accounting for 102,367 shares. Insider sales totaled 2,518 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 17.0 shares. Insiders now hold a total of 3.26M shares after the latest sales, with 3.90% net shares purchased.

Major holders

Insiders own 0.40% of the company shares, while shares held by institutions stand at 93.30% with a share float percentage of 154.51M. Investors are also buoyed by the number of investors in a company, with Olin Corporation having a total of 386 institutions that hold shares in the company. The top two institutional holders are FMR, LLC with over 17.15 million shares worth more than $197.03 million. As of Jun 29, 2020, FMR, LLC held 10.86% of shares outstanding.

The other major institutional holder is Blackrock Inc., with the investment firm holding over 15.69 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $180.24 million and represent 9.94% of shares outstanding.