Stocks To Watch With Trade Uncertainty This High – Novavax Inc. (NVAX), FinVolution Group (FINV)

Novavax Inc. (NASDAQ: NVAX) shares are 2672.36% up in the year-to-date (YTD) period and have moved 2.41% or $2.6 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +2,921.52% lower. Comparatively, the stock is -41.74% down YTD and 122.28% over the trailing 3-month period. If we look at the shorter duration, its week performance is -7.48% and -22.89% over the month.

Analyst Recommendations

On August 05, 2020, JP Morgan recommended the NVAX stock is a Overweight, while earlier, H.C. Wainwright had Reiterated the stock as a Buy on August 06, 2020. 5 analysts offering the recommendations for the stock have a consensus rating of 2.70 to suggest that the NVAX stock is a “Moderate Buy. 0 of the 5 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 $110.34. The forecasts give the Novavax Inc. stock a price target range of $290.00 on the higher side while at least one analyst think the stock could plunge to a low of $105.00. The two limits represent an upside potential of 61.95% or -5.09%.

Earnings Forecast

Analysts estimate the earnings to increase 28.60% in the current quarter to $1.83, up from the -$0.74 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $9.08, up 6,159.20% from -$5.51 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between $0.04 and $16.4. Wall Street estimates earnings per share to be at an average of $21.75 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 38 over the last 12 months, while SEC filings reveal that there have been 34 insider sales over the same period. Insiders have purchases 221,344 shares while those sold by company executives and officers stand at 225,990. The last 3 months have seen insiders trade a total of 181,700 and 181,728 in purchases and sales respectively.

Herrmann John A III, a EVP, Chief Legal Officer at the company, sold 46,242 shares worth $6.67 million at $144.33 per share on Aug 18. The Director had earlier sold another 8,000 NVAX shares valued at $1.17 million on Aug 18. The shares were sold at $146.00 per share. Trizzino John (EVP, CBO and CFO) sold 42,788 shares at $148.78 per share on Aug 18 for a total of $6.37 million while Glenn Gregory M, (President, R&D) sold 55,921 shares on Aug 18 for $8.12 million with each share fetching $145.20.

FinVolution Group (NYSE:FINV), on the other hand, is trading around $1.90 with a market cap of $375.71M and analyst research firms have a negative stance on its shares. Analysts predict that the stock will reach $2.98 and spell out a more modest performance – a 36.24% return. Some analysts are even forecasting $0.72 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the FinVolution Group (FINV) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

FINV’s operating margin was positive on the trailing 12 months basis, remaining steady at 30.70%, while the operating expenses over the recent quarter were at $137.98 million. This represented a 46.16% of the company’s total revenues which amounted $256.25 million. With this in place, we can see that the company’s diluted EPS inclined $0.21 on the year-over-year period, growing to $0.31 as given in the last earnings report.

In terms of the balance sheet & cash flow as of (Jun 2020), the total assets figure advanced to $2.12 billion from $2.25 billion over the previous quarter. Short term investments amounted to $230.07 million while total current assets were at $1.72 billion. The cash flow from operating activities totaled $94.44 million, significantly lower than the $159.28 million reported in the year-ago quarter. The company’s free cash flow for the quarter was $94.44 million.

Major holders

Insiders own 16.24% of the company shares, while shares held by institutions stand at 18.30% with a share float percentage of 93.57M. Investors are also buoyed by the number of investors in a company, with FinVolution Group having a total of 92 institutions that hold shares in the company. The top two institutional holders are Wells Fargo & Company with over 11.86 million shares worth more than $21.47 million. As of Jun 29, 2020, Wells Fargo & Company held 69.79% of shares outstanding.

The other major institutional holder is L1 Capital Pty Ltd, with the investment firm holding over 2.71 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $4.91 million and represent 15.95% of shares outstanding.