Exploring Strategic Opportunities: Atomera Incorporated (ATOM), Callon Petroleum Company (CPE)

Atomera Incorporated (NASDAQ: ATOM) shares are 312.66% up in the year-to-date (YTD) period and have moved 16.39% or $1.79 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +402.37% lower. Comparatively, the stock is -4.44% down YTD and 40.29% over the trailing 3-month period. If we look at the shorter duration, its week performance is 9.47% and 19.45% over the month.

Analyst Recommendations

On June 22, 2018, Loop Capital recommended the ATOM stock is a Buy, while earlier, ROTH Capital had Initiated the stock as a Buy on October 18, 2018. 0 of the 2 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 2 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $12.71 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $14.50. The forecasts give the Atomera Incorporated stock a price target range of $15.00 on the higher side while at least one analyst think the stock could plunge to a low of $14.00. The two limits represent an upside potential of 15.27% or 9.21%.

Earnings Forecast

Analysts estimate the earnings to decrease 0.00% in the current quarter to -$0.2, down from the -$0.19 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$0.84, down -40.00% from -$0.84 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.21 and -$0.2. Wall Street estimates earnings per share to be at an average of -$0.78 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 13 over the last 12 months, while SEC filings reveal that there have been 20 insider sales over the same period. Insiders have purchases 298,718 shares while those sold by company executives and officers stand at 46,558. The last 3 months have seen insiders trade a total of 0 and 0 in purchases and sales respectively.

Trautmann Erwin, sold 635 shares worth $5448.0 at $8.58 per share on Jun 01. The Chief Technology Officer had earlier sold another 2,295 ATOM shares valued at $19691.0 on Jun 01. The shares were sold at $8.58 per share. BIBAUD SCOTT A. (CEO and President) sold 6,835 shares at $8.58 per share on Jun 01 for a total of $58644.0 while Laurencio Francis, sold 2,729 shares on Jun 01 for $23415.0 with each share fetching $8.58.

Callon Petroleum Company (NYSE:CPE), on the other hand, is trading around $6.63 with a market cap of $260.96M and analyst research firms have a negative stance on its shares. Analysts predict that the stock will reach $10.92 and spell out a more modest performance – a 39.29% return. Some analysts are even forecasting $2.97 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Callon Petroleum Company (CPE) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

CPE’s operating expenses over the recent quarter were at $22.68 million. This represented a 85.57% of the company’s total revenues which amounted $157.23 million. With this in place, we can see that the company’s diluted EPS declined -$39.41 on the year-over-year period, growing to $2.42 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 $5.81 billion from $7.38 billion over the previous quarter. The cash flow from operating activities totaled $289.5 million, significantly higher than the $225.05 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$141.07 million.

Insider activity

Insiders have transacted a total of 33 times at Callon Petroleum Company over the last 6 months, with insider purchases undertaken 28 times and accounting for 2,466,981 shares. Insider sales totaled 60,685 shares over the same period, with these deals completed in 5 transactions. Looking at these numbers, we realize that net purchases over that period are 23.0 shares. Insiders now hold a total of 864.11k shares after the latest sales, with -144.90% net shares purchased.

Major holders

Insiders own 2.00% of the company shares, while shares held by institutions stand at 48.10% with a share float percentage of 38.64M. Investors are also buoyed by the number of investors in a company, with Callon Petroleum Company having a total of 387 institutions that hold shares in the company.