Forum Energy Technologies Inc. (FET) Vs. SuRo Capital Corp. (SSSS): Which Is Riskier?

Forum Energy Technologies Inc. (NYSE: FET) shares are -67.43% down in the year-to-date (YTD) period and have moved -4.15% or -$0.02 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +264.49% lower. Comparatively, the stock is -72.78% down YTD and 61.86% over the trailing 3-month period. If we look at the shorter duration, its week performance is -0.91% and 9.29% over the month.

Analyst Recommendations

On March 16, 2020, Morgan Stanley recommended the FET stock is a Underweight, while earlier, Piper Sandler had Downgrade the stock as a Neutral on June 30, 2020. 3 analysts offering the recommendations for the stock have a consensus rating of 3.40 to suggest that the FET stock is a “Hold. 2 of the 3 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 $0.55. The forecasts give the Forum Energy Technologies Inc. stock a price target range of $1.00 on the higher side while at least one analyst think the stock could plunge to a low of $0.25. The two limits represent an upside potential of 45.0% or -120.0%.

Earnings Forecast

Analysts estimate the earnings to increase 3.30% in the current quarter to -$0.28, down from the $0.02 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$1.04, down -46.60% from -$0.19 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.29 and -$0.26. Wall Street estimates earnings per share to be at an average of -$0.58 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 28 insider sales over the same period. Insiders have purchases 6,557,090 shares while those sold by company executives and officers stand at 8,461,233. The last 3 months have seen insiders trade a total of 2,338,750 and 0 in purchases and sales respectively.

GAUT C CHRISTOPHER, a CEO & COB at the company, bought 20,000 shares worth $9772.0 at $0.49 per share on Aug 18. The CEO & COB had earlier bought another 105,000 FET shares valued at $50778.0 on Aug 19. The shares were bought at $0.48 per share. WAITE ANDREW L (Director) bought 585,938 shares at $1.28 per share on Nov 25 for a total of $0.75 million while Baldwin David C, (Director) bought 585,938 shares on Nov 25 for $0.75 million with each share fetching $1.28.

SuRo Capital Corp. (NASDAQ:SSSS), on the other hand, is trading around $13.31 with a market cap of $218.55M and analyst research firms have a negative stance on its shares. Analysts predict that the stock will reach $15.33 and spell out a more modest performance – a 13.18% return. Some analysts are even forecasting $0.77 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

SSSS’s operating expenses over the recent quarter were at $12000.0. This represented a 95.04% of the company’s total revenues which amounted $0.24 million. With this in place, we can see that the company’s diluted EPS inclined $1.08 on the year-over-year period, shrinking to -$0.03 as given in the last earnings report.

The company’s free cash flow for the quarter was -$12.14 million.

Insider activity

Insiders have transacted a total of 40 times at SuRo Capital Corp. over the last 6 months, with insider purchases undertaken 40 times and accounting for 1,099,920 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 40.0 shares. Insiders now hold a total of 3.37M shares after the latest sales, with 49.90% net shares purchased.

Major holders

Insiders own 18.80% of the company shares, while shares held by institutions stand at 19.80% with a share float percentage of 13.02M. Investors are also buoyed by the number of investors in a company, with SuRo Capital Corp. having a total of 44 institutions that hold shares in the company.