Sophisticated Investors Should Avoid: Tyme Technologies Inc. (TYME), Vir Biotechnology Inc. (VIR)

Tyme Technologies Inc. (NASDAQ: TYME) shares are -27.86% down in the year-to-date (YTD) period and have moved -7.34% or -$0.08 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +17.43% lower. Comparatively, the stock is -50.49% down YTD and -30.82% over the trailing 3-month period. If we look at the shorter duration, its week performance is -13.68% and -15.13% over the month.

Analyst Recommendations

2 analysts offering the recommendations for the stock have a consensus rating of 1.50 to suggest that the TYME stock is a “Strong Buy. 0 of the 2 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 2 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $1.01. The forecasts give the Tyme Technologies Inc. stock a price target range of $9.50 on the higher side while at least one analyst think the stock could plunge to a low of $8.00. The two limits represent an upside potential of 89.37% or 87.38%.

Earnings Forecast

Analysts estimate the earnings to decrease -16.70% in the current quarter to -$0.06, down from the -$0.05 reported in the same quarter a year ago. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.08 and -$0.07. Wall Street estimates earnings per share to be at an average of -$0.2 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 5 over the last 12 months, while SEC filings reveal that there have been 63 insider sales over the same period. Insiders have purchases 70,000 shares while those sold by company executives and officers stand at 1,385,975. The last 3 months have seen insiders trade a total of 20,000 and 574,000 in purchases and sales respectively.

Hoffman Steve, a Chief Executive Officer at the company, sold 41,750 shares worth $52188.0 at $1.25 per share on Aug 26. The Chief Executive Officer had earlier sold another 41,750 TYME shares valued at $47178.0 on Aug 27. The shares were sold at $1.13 per share. Demurjian Michael (10% Owner) sold 20,000 shares at $1.17 per share on Aug 24 for a total of $23400.0 while Demurjian Michael, (10% Owner) sold 20,000 shares on Aug 17 for $25742.0 with each share fetching $1.29.

Vir Biotechnology Inc. (NASDAQ:VIR), on the other hand, is trading around $40.48 with a market cap of $5.08B and analyst research firms have a negative stance on its shares. Analysts predict that the stock will reach $49.17 and spell out a more modest performance – a 17.67% return. Some analysts are even forecasting -$2.24 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

VIR’s operating expenses over the recent quarter were at -$29.05 million. This represented a 143.37% of the company’s total revenues which amounted $66.99 million. With this in place, we can see that the company’s diluted EPS declined -$0.27 on the year-over-year period, shrinking to -$3.64 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 $672.24 million from $477.11 million over the previous quarter. Short term investments amounted to $180.6 million while total current assets were at $578.76 million. The cash flow from operating activities totaled -$59.05 million, significantly lower than the -$53.79 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$61.69 million.

Insider activity

Insiders have transacted a total of 72 times at Vir Biotechnology Inc. over the last 6 months, with insider purchases undertaken 30 times and accounting for 645,616 shares. Insider sales totaled 742,074 shares over the same period, with these deals completed in 42 transactions. Looking at these numbers, we realize that net purchases over that period are -12.0 shares. Insiders now hold a total of 18.48M shares after the latest sales, with -291.50% net shares purchased.

Major holders

Insiders own 4.10% of the company shares, while shares held by institutions stand at 44.90% with a share float percentage of 109.08M. Investors are also buoyed by the number of investors in a company, with Vir Biotechnology Inc. having a total of 83 institutions that hold shares in the company. The top two institutional holders are SB Investment Advisers (UK) LTD with over 22.62 million shares worth more than $926.6 million. As of Jun 29, 2020, SB Investment Advisers (UK) LTD held 17.80% of shares outstanding.

The other major institutional holder is Temasek Holdings (Private) Limited, with the investment firm holding over 5.5 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $225.33 million and represent 4.33% of shares outstanding.