Stocks That Should Surprise the Market: Mallinckrodt plc (MNK), Village Farms International Inc. (VFF)

Mallinckrodt plc (NYSE: MNK) shares are -54.73% down in the year-to-date (YTD) period and have moved -4.24% or -$0.07 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +58.00% lower. Comparatively, the stock is -75.39% down YTD and -43.37% over the trailing 3-month period. If we look at the shorter duration, its week performance is 12.06% and -29.15% over the month.

Analyst Recommendations

On September 05, 2019, BofA/Merrill recommended the MNK stock is a Underperform, while earlier, JP Morgan had Downgrade the stock as a Underweight on May 19, 2020.

The stock currently trades at $1.58 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $1.61. The forecasts give the Mallinckrodt plc stock a price target range of $2.50 on the higher side while at least one analyst think the stock could plunge to a low of $1.00. The two limits represent an upside potential of 36.8% or -58.0%.

Earnings Forecast

Analysts estimate the earnings to increase 41.00% in the current quarter to $1.36, down from the $2.07 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $6.35, down -16.60% from $8.88 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between $1.15 and $1.84. Wall Street estimates earnings per share to be at an average of $4.02 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 0 over the last 12 months, while SEC filings reveal that there have been 31 insider sales over the same period. Insiders have purchases 0 shares while those sold by company executives and officers stand at 114,278. The last 3 months have seen insiders trade a total of 0 and 0 in purchases and sales respectively.

Village Farms International Inc. (NASDAQ:VFF), on the other hand, is trading around $5.73 with a market cap of $323.60M and analyst research firms have a positive stance on its shares.

Let us briefly look at the Village Farms International Inc. (VFF) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

VFF’s operating expenses over the recent quarter were at $4.18 million. This represented a 91.2% of the company’s total revenues which amounted $47.57 million. With this in place, we can see that the company’s diluted EPS declined $0.00 on the year-over-year period, growing to $0.07 as given in the last earnings report.

The cash flow from operating activities totaled $2.15 million, significantly higher than the -$9.44 million reported in the year-ago quarter. The company’s free cash flow for the quarter was $1.69 million.

Insider activity

Insiders have transacted a total of 3 times at Village Farms International Inc. over the last 6 months, with insider purchases undertaken 1 times and accounting for 20,000 shares. Insider sales totaled 182,020 shares over the same period, with these deals completed in 2 transactions. Looking at these numbers, we realize that net purchases over that period are -1.0 shares. Insiders now hold a total of 10.52M shares after the latest sales, with 0.00% net shares purchased.

Major holders

Insiders own 18.62% of the company shares, while shares held by institutions stand at 15.33% with a share float percentage of 46.01M. Investors are also buoyed by the number of investors in a company, with Village Farms International Inc. having a total of 95 institutions that hold shares in the company. The top two institutional holders are ETF Managers Group, LLC with over 2.81 million shares worth more than $13.45 million. As of Jun 29, 2020, ETF Managers Group, LLC held 4.98% of shares outstanding.

The other major institutional holder is Hillsdale Investment Management Inc., with the investment firm holding over 1.12 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $5.38 million and represent 1.99% of shares outstanding.