Unsafe At Current Price? – Hancock Jaffe Laboratories Inc. (HJLI), Graf Industrial Corp. (GRAF)

Hancock Jaffe Laboratories Inc. (NASDAQ: HJLI) shares are -19.11% down in the year-to-date (YTD) period and have moved -1.13% or -$0.01 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +110.75% lower. Comparatively, the stock is -47.66% down YTD and 23.21% over the trailing 3-month period. If we look at the shorter duration, its week performance is -3.32% and 38.81% over the month.

Analyst Recommendations

1 analysts offering the recommendations for the stock have a consensus rating of 2.00 to suggest that the HJLI stock is a “Moderate Buy. 0 of the 1 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 1 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $0.44. The forecasts give the Hancock Jaffe Laboratories Inc. stock a price target range of $3.00 on the higher side while at least one analyst think the stock could plunge to a low of $3.00. The two limits represent an upside potential of 85.33% or 85.33%.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 3 over the last 12 months, while SEC filings reveal that there have been 3 insider sales over the same period. Insiders have purchases 187,500 shares while those sold by company executives and officers stand at 225,583. The last 3 months have seen insiders trade a total of 187,500 and 225,583 in purchases and sales respectively.

Biodyne Holding, S.A., a 10% Owner at the company, sold 220,000 shares worth $72600.0 at $0.33 per share on Jun 02. The 10% Owner had earlier sold another 5,583 HJLI shares valued at $1731.0 on Jun 03. The shares were sold at $0.31 per share.

Graf Industrial Corp. (NYSE:GRAF), on the other hand, is trading around $19.70 with a market cap of $318.75M and analyst research firms have a positive stance on its shares.

Let us briefly look at the Graf Industrial Corp. (GRAF) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

GRAF’s operating expenses over the recent quarter were at -$0.41 million. This represented a 184.98% of the company’s total revenues which amounted $0.49 million. With this in place, we can see that the company’s diluted EPS declined -$0.02 on the year-over-year period, growing to $0.01 as given in the last earnings report.

The company’s free cash flow for the quarter was -$0.76 million.

Insider activity

Insiders have transacted a total of 4 times at Graf Industrial Corp. over the last 6 months, with insider purchases undertaken 0 times and accounting for 0 shares. Insider sales totaled 3,181,052 shares over the same period, with these deals completed in 4 transactions. Looking at these numbers, we realize that net purchases over that period are -4.0 shares. Insiders now hold a total of 1.03M shares after the latest sales, with -75.60% net shares purchased.

Major holders

Insiders own 5.86% of the company shares, while shares held by institutions stand at 96.21% with a share float percentage of 15.76M. Investors are also buoyed by the number of investors in a company, with Graf Industrial Corp. having a total of 39 institutions that hold shares in the company. The top two institutional holders are Glazer Capital LLC with over 3.93 million shares worth more than $54.6 million. As of Jun 29, 2020, Glazer Capital LLC held 22.38% of shares outstanding.

The other major institutional holder is Magnetar Financial LLC, with the investment firm holding over 2.52 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $35.1 million and represent 14.39% of shares outstanding.