Volatility Returns To Turquoise Hill Resources Ltd. (TRQ), Pitney Bowes Inc. (PBI)

Turquoise Hill Resources Ltd. (NYSE: TRQ) shares are 35.83% up in the year-to-date (YTD) period and have moved 9.18% or $0.08 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +232.12% lower. Comparatively, the stock is up 32.66% over the trailing 3-month period. If we look at the shorter duration, its week performance is 6.70% and 19.10% over the month.

Analyst Recommendations

On April 01, 2020, CIBC recommended the TRQ stock is a Neutral, while earlier, CIBC had Upgrade the stock as a Sector Outperform on July 06, 2020. 8 analysts offering the recommendations for the stock have a consensus rating of 3.00 to suggest that the TRQ stock is a “Hold. 1 of the 8 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 5 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $1.00. The forecasts give the Turquoise Hill Resources Ltd. stock a price target range of $1.87 on the higher side while at least one analyst think the stock could plunge to a low of $0.61. The two limits represent an upside potential of 46.52% or -63.93%.

Earnings Forecast

For the current year, earnings should grow to an average of $0.07, down -21.80% from $0.1 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.01 and $0.02. Wall Street estimates earnings per share to be at an average of $0.05 for the next year.

Pitney Bowes Inc. (NYSE:PBI), on the other hand, is trading around $5.84 with a market cap of $1.03B and analyst research firms have a negative stance on its shares. Analysts predict that the stock will reach $5.50 and spell out a less modest performance – a -6.18% return. Some analysts are even forecasting $0.23 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

PBI’s operating margin was negative on the trailing 12 months basis, remaining steady at -4.00%, while the operating expenses over the recent quarter were at $246.32 million. This represented a 70.59% of the company’s total revenues which amounted $837.49 million. With this in place, we can see that the company’s diluted EPS declined $0.00 on the year-over-year period, growing to $0.16 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 $5.12 billion from $4.89 billion over the previous quarter. Short term investments amounted to $153.22 million while total current assets were at $2.16 billion. The cash flow from operating activities totaled $86.81 million, significantly higher than the $86.78 million reported in the year-ago quarter. The company’s free cash flow for the quarter was $26.86 million.

Insider activity

Insiders have transacted a total of 8 times at Pitney Bowes Inc. over the last 6 months, with insider purchases undertaken 8 times and accounting for 123,107 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 1.14M shares after the latest sales, with 27.40% net shares purchased.

Major holders

Insiders own 0.20% of the company shares, while shares held by institutions stand at 81.40% with a share float percentage of 163.21M. Investors are also buoyed by the number of investors in a company, with Pitney Bowes Inc. having a total of 336 institutions that hold shares in the company. The top two institutional holders are Blackrock Inc. with over 25.4 million shares worth more than $66.03 million. As of Jun 29, 2020, Blackrock Inc. held 14.67% of shares outstanding.

The other major institutional holder is Vanguard Group, Inc. (The), with the investment firm holding over 17.22 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $44.76 million and represent 9.95% of shares outstanding.