Globalstar Inc. (GSAT) Vs. Clovis Oncology Inc. (CLVS): Updated Outlook

Globalstar Inc. (AMEX: GSAT) shares are -35.51% down in the year-to-date (YTD) period and have moved 0.24% or $0.0 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +45.31% lower. Comparatively, the stock is -44.25% down YTD and 1.49% over the trailing 3-month period. If we look at the shorter duration, its week performance is 3.56% and -14.16% over the month.

Analyst Recommendations

On February 24, 2017, Chardan Capital Markets recommended the GSAT stock is a Buy, while earlier, Chardan Capital Markets had Downgrade the stock as a Neutral on August 09, 2018. 1 analysts offering the recommendations for the stock have a consensus rating of 3.00 to suggest that the GSAT stock is a “Hold. 0 of the 1 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 $0.33. The forecasts give the Globalstar Inc. stock a price target range of $0.55 on the higher side while at least one analyst think the stock could plunge to a low of $0.55. The two limits represent an upside potential of 40.0% or 40.0%.

Earnings Forecast

Analysts estimate the earnings to decrease 0.00% in the current quarter to -$0.01, up from the -$0.02 reported in the same quarter a year ago. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.01 and -$0.01. Wall Street estimates earnings per share to be at an average of -$0.06 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 44 over the last 12 months, while SEC filings reveal that there have been 8 insider sales over the same period. Insiders have purchases 11,032,565 shares while those sold by company executives and officers stand at 278,310. The last 3 months have seen insiders trade a total of 0 and 0 in purchases and sales respectively.

Monroe James III, a Director at the company, bought 570,000 shares worth $0.28 million at $0.49 per share on Dec 20. The Director had earlier bought another 9,727 GSAT shares valued at $4864.0 on Dec 23. The shares were bought at $0.50 per share. Monroe James III (Director) bought 1,500,000 shares at $0.45 per share on Dec 19 for a total of $0.68 million while Monroe James III, (Director) bought 750,000 shares on Dec 18 for $0.32 million with each share fetching $0.43.

Clovis Oncology Inc. (NASDAQ:CLVS), on the other hand, is trading around $5.21 with a market cap of $452.44M and analyst research firms have a positive stance on its shares. Some analysts are even forecasting -$4.32 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

CLVS’s operating expenses over the recent quarter were at $112.53 million. This represented a -182.13% of the company’s total revenues which amounted $39.89 million. With this in place, we can see that the company’s diluted EPS declined -$1.15 on the year-over-year period, shrinking to -$2.27 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 $628.21 million from $601.79 million over the previous quarter. Short term investments amounted to $0.0 while total current assets were at $322.84 million. The cash flow from operating activities totaled -$142.35 million, significantly higher than the -$196.49 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$142.43 million.

Insider activity

Insiders have transacted a total of 64 times at Clovis Oncology Inc. over the last 6 months, with insider purchases undertaken 32 times and accounting for 57,553 shares. Insider sales totaled 25,752 shares over the same period, with these deals completed in 32 transactions. Looking at these numbers, we realize that net purchases over that period are 0.0 shares. Insiders now hold a total of 2M shares after the latest sales, with 2.90% net shares purchased.

Major holders

Insiders own 0.40% of the company shares, while shares held by institutions stand at 55.20% with a share float percentage of 85.08M. Investors are also buoyed by the number of investors in a company, with Clovis Oncology Inc. having a total of 204 institutions that hold shares in the company. The top two institutional holders are State Street Corporation with over 9.24 million shares worth more than $62.36 million. As of Jun 29, 2020, State Street Corporation held 10.47% of shares outstanding.

The other major institutional holder is Vanguard Group, Inc. (The), with the investment firm holding over 6.24 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $42.15 million and represent 7.08% of shares outstanding.