Heat Check: HighPoint Resources Corporation (HPR) Vs. Enphase Energy Inc. (ENPH)

HighPoint Resources Corporation (NYSE: HPR) shares are -81.39% down in the year-to-date (YTD) period and have moved -0.10% or $0.0 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +102.90% lower. Comparatively, the stock is -84.12% down YTD and 21.29% over the trailing 3-month period. If we look at the shorter duration, its week performance is -9.70% and -12.98% over the month.

Analyst Recommendations

On February 28, 2020, Imperial Capital recommended the HPR stock is a In-line, while earlier, SunTrust had Downgrade the stock as a Hold on March 09, 2020. 4 analysts offering the recommendations for the stock have a consensus rating of 2.30 to suggest that the HPR stock is a “Moderate Buy. 1 of the 4 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 1 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $0.31. The forecasts give the HighPoint Resources Corporation stock a price target range of $1.03 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 69.9% or -24.0%.

Earnings Forecast

Analysts estimate the earnings to increase 300.00% in the current quarter to $0.03, up from the -$0.04 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $0.03, down -48.40% from -$0.2 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.07 and $0.05. 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 12 over the last 12 months, while SEC filings reveal that there have been 10 insider sales over the same period. Insiders have purchases 2,174,159 shares while those sold by company executives and officers stand at 636,780. The last 3 months have seen insiders trade a total of 87,680 and 88,025 in purchases and sales respectively.

Enphase Energy Inc. (NASDAQ:ENPH), on the other hand, is trading around $77.23 with a market cap of $9.40B and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $75.93 and spell out a less modest performance – a -1.71% return. Some analysts are even forecasting $1.21 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

ENPH’s operating margin was positive on the trailing 12 months basis, remaining steady at 18.50%, while the operating expenses over the recent quarter were at $0.28 million. This represented a 99.78% of the company’s total revenues which amounted $125.54 million. With this in place, we can see that the company’s diluted EPS declined -$0.38 on the year-over-year period, growing 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 $986.47 million from $1.02 billion over the previous quarter. The cash flow from operating activities totaled $64.65 million, significantly higher than the $31.84 million reported in the year-ago quarter. The company’s free cash flow for the quarter was $56.85 million.

Insider activity

Insiders have transacted a total of 67 times at Enphase Energy Inc. over the last 6 months, with insider purchases undertaken 8 times and accounting for 227,991 shares. Insider sales totaled 16,599,925 shares over the same period, with these deals completed in 59 transactions. Looking at these numbers, we realize that net purchases over that period are -51.0 shares. Insiders now hold a total of 24.89M shares after the latest sales, with -51.90% net shares purchased.

Major holders

Insiders own 1.80% of the company shares, while shares held by institutions stand at 72.50% with a share float percentage of 114.96M. Investors are also buoyed by the number of investors in a company, with Enphase Energy Inc. having a total of 336 institutions that hold shares in the company. The top two institutional holders are FMR, LLC with over 10.67 million shares worth more than $507.58 million. As of Jun 29, 2020, FMR, LLC held 8.47% of shares outstanding.

The other major institutional holder is Vanguard Group, Inc. (The), with the investment firm holding over 10.18 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $484.17 million and represent 8.08% of shares outstanding.