Heat Check: Bloom Energy Corporation (BE) Vs. Roku Inc. (ROKU)

Bloom Energy Corporation (NYSE: BE) shares are 109.64% up in the year-to-date (YTD) period and have moved -3.99% or -$0.65 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +422.00% lower. Comparatively, the stock is -20.39% down YTD and 96.24% over the trailing 3-month period. If we look at the shorter duration, its week performance is -4.16% and 28.78% over the month.

Analyst Recommendations

On February 13, 2020, KeyBanc Capital Markets recommended the BE stock is a Sector Weight, while earlier, Raymond James had Downgrade the stock as a Mkt Perform on February 20, 2020. 8 analysts offering the recommendations for the stock have a consensus rating of 2.80 to suggest that the BE stock is a “Moderate Buy. 0 of the 8 analysts rate the stock as a “Sell”, while 1 has rated it as “Underweight”. 3 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $15.66 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $15.71. The forecasts give the Bloom Energy Corporation stock a price target range of $24.00 on the higher side while at least one analyst think the stock could plunge to a low of $8.50. The two limits represent an upside potential of 34.75% or -84.24%.

Earnings Forecast

Analysts estimate the earnings to decrease -9.50% in the current quarter to -$0.12, down from the $0.01 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$0.72, up 7.30% from -$1.03 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.13 and $0.01. Wall Street estimates earnings per share to be at an average of -$0.04 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 78 over the last 12 months, while SEC filings reveal that there have been 53 insider sales over the same period. Insiders have purchases 22,618,866 shares while those sold by company executives and officers stand at 26,623,536. The last 3 months have seen insiders trade a total of 1,239,981 and 1,112,384 in purchases and sales respectively.

Sridhar KR, a President & CEO at the company, sold 488,247 shares worth $7.82 million at $16.02 per share on Aug 25. The EVP of CIG had earlier sold another 2,083 BE shares valued at $33661.0 on Aug 27. The shares were sold at $16.16 per share. Venkataraman Swaminathan (EVP & CTO) sold 1,666 shares at $16.47 per share on Aug 20 for a total of $27441.0 while Venkataraman Swaminathan, (EVP & CTO) sold 1,650 shares on Aug 17 for $23368.0 with each share fetching $14.16.

Roku Inc. (NASDAQ:ROKU), on the other hand, is trading around $173.48 with a market cap of $20.15B and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $164.64 and spell out a less modest performance – a -5.37% return. Some analysts are even forecasting -$1.44 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

ROKU’s operating margin was negative on the trailing 12 months basis, remaining steady at -10.50%, while the operating expenses over the recent quarter were at $189.28 million. This represented a 46.84% of the company’s total revenues which amounted $356.07 million. With this in place, we can see that the company’s diluted EPS declined -$0.35 on the year-over-year period, shrinking to -$0.08 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 $1.85 billion from $1.54 billion over the previous quarter. The cash flow from operating activities totaled $80.1 million, significantly higher than the $14.03 million reported in the year-ago quarter. The company’s free cash flow for the quarter was $15.99 million.

Insider activity

Insiders have transacted a total of 216 times at Roku Inc. over the last 6 months, with insider purchases undertaken 54 times and accounting for 1,267,916 shares. Insider sales totaled 1,329,281 shares over the same period, with these deals completed in 162 transactions. Looking at these numbers, we realize that net purchases over that period are -108.0 shares. Insiders now hold a total of 972.72k shares after the latest sales, with 23.10% net shares purchased.

Major holders

Insiders own 0.10% of the company shares, while shares held by institutions stand at 72.00% with a share float percentage of 105.18M. Investors are also buoyed by the number of investors in a company, with Roku Inc. having a total of 649 institutions that hold shares in the company. The top two institutional holders are FMR, LLC with over 10.15 million shares worth more than $1.18 billion. As of Jun 29, 2020, FMR, LLC held 9.59% of shares outstanding.

The other major institutional holder is Vanguard Group, Inc. (The), with the investment firm holding over 8.53 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $993.51 million and represent 8.05% of shares outstanding.