A focus on opportunistic stocks: Just Energy Group Inc. (JE), Pacific Drilling S.A. (PACD)

Just Energy Group Inc. (NYSE: JE) shares are -78.41% down in the year-to-date (YTD) period and have moved -6.88% or -$0.03 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +28.62% lower. Comparatively, the stock is -80.39% down YTD and -11.15% over the trailing 3-month period. If we look at the shorter duration, its week performance is 17.72% and 1.65% over the month.

Analyst Recommendations

On October 08, 2019, Canaccord Genuity recommended the JE stock is a Hold, while earlier, RBC Capital Mkts had Downgrade the stock as a Underperform on July 29, 2020. 2 analysts offering the recommendations for the stock have a consensus rating of 1.70 to suggest that the JE stock is a “Strong Buy. 1 of the 2 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 0 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $0.36. The forecasts give the Just Energy Group Inc. stock a price target range of $0.38 on the higher side while at least one analyst think the stock could plunge to a low of $0.23. The two limits represent an upside potential of 5.26% or -56.52%.

Earnings Forecast

Analysts estimate the earnings to increase 584.60% in the current quarter to $0.15, up from the -$0.24 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $1.12, down -1.10% from $1.9 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between $0.06 and $0.06. Wall Street estimates earnings per share to be at an average of $0.52 for the next year.

Pacific Drilling S.A. (NYSE:PACD), on the other hand, is trading around $0.25 with a market cap of $18.06M and analyst research firms have a negative stance on its shares. Some analysts are even forecasting -$3.85 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Pacific Drilling S.A. (PACD) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

PACD’s operating expenses over the recent quarter were at $38.52 million. This represented a 1.0% of the company’s total revenues which amounted $38.91 million. With this in place, we can see that the company’s diluted EPS declined -$1.16 on the year-over-year period, shrinking to -$0.98 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 $2.17 billion from $2.27 billion over the previous quarter. The cash flow from operating activities totaled -$73.23 million, significantly lower than the -$51.87 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$80.19 million.

Insider activity

Insiders have transacted a total of 26 times at Pacific Drilling S.A. over the last 6 months, with insider purchases undertaken 2 times and accounting for 186,355 shares. Insider sales totaled 57,406,926 shares over the same period, with these deals completed in 24 transactions. Looking at these numbers, we realize that net purchases over that period are -22.0 shares. Insiders now hold a total of 5M shares after the latest sales, with -88.70% net shares purchased.

Major holders

Insiders own 0.60% of the company shares, while shares held by institutions stand at 16.60% with a share float percentage of 70.81M. Investors are also buoyed by the number of investors in a company, with Pacific Drilling S.A. having a total of 79 institutions that hold shares in the company.