This Could Be A Brutal Week For OPKO Health Inc. (OPK), Resolute Forest Products Inc. (RFP)

OPKO Health Inc. (NASDAQ: OPK) shares are 120.41% up in the year-to-date (YTD) period and have moved -2.99% or -$0.1 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +190.04% lower. Comparatively, the stock is -49.92% down YTD and 33.88% over the trailing 3-month period. If we look at the shorter duration, its week performance is -31.65% and -37.09% over the month.

Analyst Recommendations

On March 02, 2018, JP Morgan recommended the OPK stock is a Underweight, while earlier, Piper Jaffray had Initiated the stock as a Overweight on November 25, 2019. 5 analysts offering the recommendations for the stock have a consensus rating of 1.80 to suggest that the OPK stock is a “Strong Buy. 0 of the 5 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 4 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $3.24. The forecasts give the OPKO Health Inc. stock a price target range of $10.00 on the higher side while at least one analyst think the stock could plunge to a low of $6.50. The two limits represent an upside potential of 67.6% or 50.15%.

Earnings Forecast

Analysts estimate the earnings to increase 171.40% in the current quarter to $0.04, up from the -$0.11 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $0.05, up 42.30% from -$0.37 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between $0.03 and $0.1. Wall Street estimates earnings per share to be at an average of $0.21 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 254 over the last 12 months, while SEC filings reveal that there have been 0 insider sales over the same period. Insiders have purchases 10,203,304 shares while those sold by company executives and officers stand at 0. The last 3 months have seen insiders trade a total of 210,000 and 0 in purchases and sales respectively.

FROST PHILLIP MD ET AL, a CEO & Chairman at the company, bought 100,000 shares worth $0.23 million at $2.27 per share on Jun 03. The Executive VP-Administration had earlier bought another 10,000 OPK shares valued at $39943.0 on Aug 26. The shares were bought at $3.99 per share. FROST PHILLIP MD ET AL (CEO & Chairman) bought 100,000 shares at $2.42 per share on Jun 02 for a total of $0.24 million while FROST PHILLIP MD ET AL, (CEO & Chairman) bought 100,000 shares on May 28 for $0.22 million with each share fetching $2.16.

Resolute Forest Products Inc. (NYSE:RFP), on the other hand, is trading around $4.73 with a market cap of $386.11M and analyst research firms have a negative stance on its shares. Analysts predict that the stock will reach $4.38 and spell out a less modest performance – a -7.99% return. Some analysts are even forecasting $0.01 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Resolute Forest Products Inc. (RFP) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

RFP’s operating margin was negative on the trailing 12 months basis, remaining steady at -2.80%, while the operating expenses over the recent quarter were at $142.0 million. This represented a 76.8% of the company’s total revenues which amounted $612.0 million. With this in place, we can see that the company’s diluted EPS inclined $0.07 on the year-over-year period, growing to $0.27 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 $3.67 billion from $3.86 billion over the previous quarter. The cash flow from operating activities totaled $76.0 million, significantly lower than the $95.0 million reported in the year-ago quarter. The company’s free cash flow for the quarter was $39.0 million.

Insider activity

Insiders have transacted a total of 5 times at Resolute Forest Products Inc. over the last 6 months, with insider purchases undertaken 2 times and accounting for 7,838 shares. Insider sales totaled 73,655 shares over the same period, with these deals completed in 3 transactions. Looking at these numbers, we realize that net purchases over that period are -1.0 shares. Insiders now hold a total of 1.06M shares after the latest sales, with -3.90% net shares purchased.

Major holders

Insiders own 1.50% of the company shares, while shares held by institutions stand at 81.70% with a share float percentage of 86.45M. Investors are also buoyed by the number of investors in a company, with Resolute Forest Products Inc. having a total of 143 institutions that hold shares in the company.