Town Sports International Holdings Inc. (CLUB) And Cinedigm Corp. (CIDM) Saying Scary Stuff?

Town Sports International Holdings Inc. (NASDAQ: CLUB) shares are -65.49% down in the year-to-date (YTD) period and have moved -7.72% or -$0.05 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +96.70% lower. Comparatively, the stock is -80.33% down YTD and -24.35% over the trailing 3-month period. If we look at the shorter duration, its week performance is -7.80% and 38.88% over the month.

Analyst Recommendations

On October 30, 2018, Imperial Capital recommended the CLUB stock is a Outperform, while earlier, Imperial Capital had Reiterated the stock as a Outperform on April 30, 2019. 0 of the 1 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 1 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $0.59. The forecasts give the Town Sports International Holdings Inc. stock a price target range of $3.00 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 80.33% or 80.33%.

Earnings Forecast

Analysts estimate the earnings to decrease -300.00% in the current quarter to $0, down from the $0.09 reported in the same quarter a year ago. Wall Street estimates earnings per share to be at an average of $0 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 9 over the last 12 months, while SEC filings reveal that there have been 5 insider sales over the same period. Insiders have purchases 1,051,879 shares while those sold by company executives and officers stand at 2,807,659. The last 3 months have seen insiders trade a total of 0 and 0 in purchases and sales respectively.

Ajmera Nitin, a Chief Accounting Officer at the company, sold 2,683 shares worth $7244.0 at $2.70 per share on Jan 22. The Chief Accounting Officer had earlier sold another 2,037 CLUB shares valued at $1589.0 on Mar 23. The shares were sold at $0.78 per share. Walsh Patrick (Chief Executive Officer) bought 4,300,000 shares at $1.50 per share on Jan 03 for a total of $6.45 million while Ajmera Nitin, (Chief Accounting Officer) sold 1,884 shares on Dec 17 for $3297.0 with each share fetching $1.75.

Cinedigm Corp. (NASDAQ:CIDM), on the other hand, is trading around $0.88 with a market cap of $92.48M and analyst research firms have a negative stance on its shares. Some analysts are even forecasting -$0.31 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

CIDM’s operating margin was negative on the trailing 12 months basis, remaining steady at -12.30%, while the operating expenses over the recent quarter were at $6.63 million. This represented a -10.22% of the company’s total revenues which amounted $6.02 million. With this in place, we can see that the company’s diluted EPS declined -$0.21 on the year-over-year period, shrinking to -$0.13 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 $111.1 million from $110.44 million over the previous quarter. The cash flow from operating activities totaled -$3.74 million, significantly lower than the $4.01 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$3.82 million.

Insider activity

Insiders have transacted a total of 8 times at Cinedigm Corp. over the last 6 months, with insider purchases undertaken 5 times and accounting for 30,305,081 shares. Insider sales totaled 8,520,352 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 2.0 shares. Insiders now hold a total of 57.32M shares after the latest sales, with 112.20% net shares purchased.

Major holders

Insiders own 8.00% of the company shares, while shares held by institutions stand at 9.30% with a share float percentage of 43.38M. Investors are also buoyed by the number of investors in a company, with Cinedigm Corp. having a total of 31 institutions that hold shares in the company.