Investors have great interest in Fulgent Genetics Inc. (FLGT), 360 Finance Inc. (QFIN)

Fulgent Genetics Inc. (NASDAQ: FLGT) shares are 129.15% up in the year-to-date (YTD) period and have moved -2.28% or -$0.69 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +341.19% lower. Comparatively, the stock is -43.66% down YTD and 61.71% over the trailing 3-month period. If we look at the shorter duration, its week performance is -35.23% and 12.18% over the month.

Analyst Recommendations

On May 29, 2020, BTIG Research recommended the FLGT stock is a Buy, while earlier, Oppenheimer had Initiated the stock as a Outperform on August 20, 2020. 4 analysts offering the recommendations for the stock have a consensus rating of 2.00 to suggest that the FLGT stock is a “Moderate Buy. 0 of the 4 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 3 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $29.56 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $17.33. The forecasts give the Fulgent Genetics Inc. stock a price target range of $75.00 on the higher side while at least one analyst think the stock could plunge to a low of $13.00. The two limits represent an upside potential of 60.59% or -127.38%.

Earnings Forecast

Analysts estimate the earnings to increase 950.00% in the current quarter to $0.53, up from the $0.14 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $1.19, up 295.00% from $0.19 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between $0.5 and $0.85. Wall Street estimates earnings per share to be at an average of $2.09 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 6 over the last 12 months, while SEC filings reveal that there have been 17 insider sales over the same period. Insiders have purchases 287,762 shares while those sold by company executives and officers stand at 1,187,638. The last 3 months have seen insiders trade a total of 242,631 and 145,662 in purchases and sales respectively.

KIM PAUL, a CFO and Treasurer at the company, sold 111,236 shares worth $4.63 million at $41.65 per share on Aug 17. The CFO and Treasurer had earlier sold another 25,407 FLGT shares valued at $1.12 million on Aug 19. The shares were sold at $44.16 per share. Gao Hanlin (Chief Scientific Officer) sold 1,308 shares at $41.11 per share on Aug 17 for a total of $53772.0 while BOLGER JOHN C, (Director) sold 3,914 shares on Aug 17 for $0.16 million with each share fetching $40.87.

360 Finance Inc. (NASDAQ:QFIN), on the other hand, is trading around $12.50 with a market cap of $1.90B and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $20.10 and spell out a more modest performance – a 37.81% return. Some analysts are even forecasting $2.65 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the 360 Finance Inc. (QFIN) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

QFIN’s operating margin was positive on the trailing 12 months basis, remaining steady at 20.70%, while the operating expenses over the recent quarter were at $276.17 million. This represented a 41.58% of the company’s total revenues which amounted $472.75 million. With this in place, we can see that the company’s diluted EPS inclined $0.82 on the year-over-year period, growing to $0.60 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 $3.39 billion from $3.22 billion over the previous quarter. The company’s free cash flow for the quarter was $0.0.

Major holders

Insiders own 15.87% of the company shares, while shares held by institutions stand at 40.20% with a share float percentage of 104.26M. Investors are also buoyed by the number of investors in a company, with 360 Finance Inc. having a total of 75 institutions that hold shares in the company. The top two institutional holders are FountainVest China Capital Partners GP3 Ltd. with over 14.59 million shares worth more than $156.25 million. As of Jun 29, 2020, FountainVest China Capital Partners GP3 Ltd. held 11.51% of shares outstanding.

The other major institutional holder is TT International Asset Management LTD, with the investment firm holding over 11.73 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $125.65 million and represent 9.25% of shares outstanding.