The Michaels Companies Inc. (MIK) Vs. ChinaNet Online Holdings Inc. (CNET): Updated Outlook

The Michaels Companies Inc. (NASDAQ: MIK) shares are 39.06% up in the year-to-date (YTD) period and have moved 1.08% or $0.12 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +1,025.00% lower. Comparatively, the stock is -2.44% down YTD and 161.02% over the trailing 3-month period. If we look at the shorter duration, its week performance is 7.76% and 56.69% over the month.

Analyst Recommendations

On June 08, 2020, JP Morgan recommended the MIK stock is a Overweight, while earlier, Telsey Advisory Group had Reiterated the stock as a Market Perform on August 21, 2020. 10 analysts offering the recommendations for the stock have a consensus rating of 3.10 to suggest that the MIK stock is a “Hold. 2 of the 10 analysts rate the stock as a “Sell”, while 1 has rated it as “Underweight”. 3 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $11.25 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $4.96. The forecasts give the The Michaels Companies Inc. stock a price target range of $14.00 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 19.64% or -275.0%.

Earnings Forecast

Analysts estimate the earnings to decrease -407.10% in the current quarter to -$0.09, down from the $0.19 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $1, down -5.30% from $2.11 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between $0.01 and $0.39. Wall Street estimates earnings per share to be at an average of $1.48 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 26 over the last 12 months, while SEC filings reveal that there have been 27 insider sales over the same period. Insiders have purchases 205,330 shares while those sold by company executives and officers stand at 48,812. The last 3 months have seen insiders trade a total of 38,215 and 13,284 in purchases and sales respectively.

RAFF BERYL, a Director at the company, bought 6,700 shares worth $50049.0 at $7.47 per share on Sep 06. The Pres. – Merch. & Supply Chain had earlier sold another 1,242 MIK shares valued at $8259.0 on Dec 09. The shares were sold at $6.65 per share.

ChinaNet Online Holdings Inc. (NASDAQ:CNET), on the other hand, is trading around $1.43 with a market cap of $31.05M and analyst research firms have a positive stance on its shares. Some analysts are even forecasting $0 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the ChinaNet Online Holdings Inc. (CNET) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

CNET’s operating margin was negative on the trailing 12 months basis, remaining steady at -6.10%, while the operating expenses over the recent quarter were at $1.44 million. This represented a 86.21% of the company’s total revenues which amounted $10.42 million. With this in place, we can see that the company’s diluted EPS declined -$0.04 on the year-over-year period, shrinking to -$0.02 as given in the last earnings report.

In terms of the balance sheet & cash flow as of Current Qtr., the total assets figure advanced to $17.07 million from $18.49 million over the previous quarter. The company’s free cash flow for the quarter was $1.17 million.

Insider activity

Insiders have transacted a total of 0 times at ChinaNet Online Holdings Inc. over the last 6 months, with insider purchases undertaken 0 times and accounting for 0 shares. Insider sales totaled 0 shares over the same period, with these deals completed in 0 transactions. Looking at these numbers, we realize that net purchases over that period are 0.0 shares. Insiders now hold a total of 6.06M shares after the latest sales, with 0.00% net shares purchased.

Major holders

Insiders own 27.87% of the company shares, while shares held by institutions stand at 0.40% with a share float percentage of 15.92M. Investors are also buoyed by the number of investors in a company, with ChinaNet Online Holdings Inc. having a total of 6 institutions that hold shares in the company.