It makes sense to watch Destination XL Group Inc. (DXLG) And The Children’s Place Inc. (PLCE)

Destination XL Group Inc. (NASDAQ: DXLG) shares are -74.02% down in the year-to-date (YTD) period and have moved -6.29% or -$0.02 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +51.07% lower. Comparatively, the stock is -74.62% down YTD and -12.75% over the trailing 3-month period. If we look at the shorter duration, its week performance is 18.79% and -3.03% over the month.

Analyst Recommendations

On August 02, 2016, Wunderlich recommended the DXLG stock is a Buy, while earlier, FBR & Co. had Resumed the stock as a Outperform on July 11, 2017. 0 of the 1 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 $0.33. The forecasts give the Destination XL Group Inc. stock a price target range of $3.00 on the higher side while at least one analyst think the stock could plunge to a low of $3.00. The two limits represent an upside potential of 89.0% or 89.0%.

Earnings Forecast

Analysts estimate the earnings to decrease 0.00% in the current quarter to $0, up from the -$0.04 reported in the same quarter a year ago. Wall Street estimates earnings per share to be at an average of $0 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 72 over the last 12 months, while SEC filings reveal that there have been 9 insider sales over the same period. Insiders have purchases 1,583,659 shares while those sold by company executives and officers stand at 334,743. The last 3 months have seen insiders trade a total of 351,574 and 164,765 in purchases and sales respectively.

CANNELL CAPITAL LLC, a 10% Owner at the company, sold 65,000 shares worth $27703.0 at $0.43 per share on May 29. The 10% Owner had earlier sold another 164,765 DXLG shares valued at $57618.0 on Jun 03. The shares were sold at $0.35 per share. CANNELL CAPITAL LLC (10% Owner) sold 25,000 shares at $0.43 per share on May 28 for a total of $10838.0 while CANNELL CAPITAL LLC, (10% Owner) sold 67,314 shares on May 27 for $30130.0 with each share fetching $0.45.

The Children’s Place Inc. (NASDAQ:PLCE), on the other hand, is trading around $19.97 with a market cap of $285.10M and analyst research firms have a negative stance on its shares. Analysts predict that the stock will reach $24.20 and spell out a more modest performance – a 17.48% return. Some analysts are even forecasting -$2.82 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the The Children’s Place Inc. (PLCE) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

PLCE’s operating margin was positive on the trailing 12 months basis, remaining steady at 5.80%, while the operating expenses over the recent quarter were at $154.35 million. This represented a 39.52% of the company’s total revenues which amounted $255.21 million. With this in place, we can see that the company’s diluted EPS declined -$7.86 on the year-over-year period, growing to $0.28 as given in the last earnings report.

In terms of the balance sheet & cash flow as of (Oct 2020), the total assets figure advanced to $1.18 billion from $1.18 billion over the previous quarter. The cash flow from operating activities totaled -$40.45 million, significantly lower than the $21.18 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$46.18 million.

Insider activity

Insiders have transacted a total of 43 times at The Children’s Place Inc. over the last 6 months, with insider purchases undertaken 20 times and accounting for 310,221 shares. Insider sales totaled 12,584 shares over the same period, with these deals completed in 23 transactions. Looking at these numbers, we realize that net purchases over that period are -3.0 shares. Insiders now hold a total of 532.68k shares after the latest sales, with 139.50% net shares purchased.

Major holders

Insiders own 5.60% of the company shares, while shares held by institutions stand at 95.00% with a share float percentage of 13.78M. Investors are also buoyed by the number of investors in a company, with The Children’s Place Inc. having a total of 265 institutions that hold shares in the company. The top two institutional holders are Blackrock Inc. with over 2.29 million shares worth more than $85.83 million. As of Jun 29, 2020, Blackrock Inc. held 15.72% of shares outstanding.

The other major institutional holder is Vanguard Group, Inc. (The), with the investment firm holding over 1.5 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $56.18 million and represent 10.29% of shares outstanding.