Stocks that are not receiving major attention: GenMark Diagnostics Inc. (GNMK), Cars.com Inc. (CARS)

GenMark Diagnostics Inc. (NASDAQ: GNMK) shares are 169.65% up in the year-to-date (YTD) period and have moved -0.92% or -$0.12 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +286.01% lower. Comparatively, the stock is -37.88% down YTD and 35.39% over the trailing 3-month period. If we look at the shorter duration, its week performance is -10.30% and -27.38% over the month.

Analyst Recommendations

On July 08, 2020, Needham recommended the GNMK stock is a Buy, while earlier, Needham had Reiterated the stock as a Buy on August 05, 2020. 7 analysts offering the recommendations for the stock have a consensus rating of 1.90 to suggest that the GNMK stock is a “Strong Buy. 0 of the 7 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 5 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $12.97 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $21.40. The forecasts give the GenMark Diagnostics Inc. stock a price target range of $23.00 on the higher side while at least one analyst think the stock could plunge to a low of $19.00. The two limits represent an upside potential of 43.61% or 31.74%.

Earnings Forecast

Analysts estimate the earnings to increase 22.20% in the current quarter to -$0.07, up from the -$0.2 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$0.27, up 85.70% from -$0.82 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.03 and $0. Wall Street estimates earnings per share to be at an average of -$0.12 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 37 over the last 12 months, while SEC filings reveal that there have been 117 insider sales over the same period. Insiders have purchases 1,181,795 shares while those sold by company executives and officers stand at 606,975. The last 3 months have seen insiders trade a total of 0 and 294,656 in purchases and sales respectively.

Mendel Scott, a President & CEO at the company, sold 50,000 shares worth $0.75 million at $15.02 per share on Aug 26. The VP, Qual, Reg, & Clin Affairs had earlier sold another 891 GNMK shares valued at $11672.0 on Aug 27. The shares were sold at $13.10 per share. Mitchell Brian Andrew (SVP, Operations) sold 3,464 shares at $14.74 per share on Aug 26 for a total of $51059.0 while Mitchell Brian Andrew, (SVP, Operations) sold 2,083 shares on Aug 25 for $29454.0 with each share fetching $14.14.

Cars.com Inc. (NYSE:CARS), on the other hand, is trading around $8.68 with a market cap of $575.66M and analyst research firms have a negative stance on its shares. Analysts predict that the stock will reach $10.34 and spell out a more modest performance – a 16.05% return. Some analysts are even forecasting $1.23 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

CARS’s operating expenses over the recent quarter were at $85.23 million. This represented a 16.45% of the company’s total revenues which amounted $102.01 million. With this in place, we can see that the company’s diluted EPS declined -$0.37 on the year-over-year period, shrinking to -$0.09 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 $1.08 billion from $1.26 billion over the previous quarter. The cash flow from operating activities totaled $57.63 million, significantly higher than the $50.76 million reported in the year-ago quarter. The company’s free cash flow for the quarter was $48.9 million.

Insider activity

Insiders have transacted a total of 21 times at Cars.com Inc. over the last 6 months, with insider purchases undertaken 16 times and accounting for 1,059,938 shares. Insider sales totaled 17,239 shares over the same period, with these deals completed in 5 transactions. Looking at these numbers, we realize that net purchases over that period are 11.0 shares. Insiders now hold a total of 1.14M shares after the latest sales, with 1,393.70% net shares purchased.

Major holders

Insiders own 2.40% of the company shares with a share float percentage of 66.37M. Investors are also buoyed by the number of investors in a company, with Cars.com Inc. having a total of 272 institutions that hold shares in the company. The top two institutional holders are Ninety One UK Ltd with over 6.46 million shares worth more than $27.76 million. As of Mar 30, 2020, Ninety One UK Ltd held 9.61% of shares outstanding.

The other major institutional holder is Vanguard Group, Inc. (The), with the investment firm holding over 6.17 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $35.53 million and represent 9.18% of shares outstanding.