Volatility Returns To Selecta Biosciences Inc. (SELB), Lumber Liquidators Holdings Inc. (LL)

Selecta Biosciences Inc. (NASDAQ: SELB) shares are 9.24% up in the year-to-date (YTD) period and have moved -0.76% or -$0.02 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +83.10% lower. Comparatively, the stock is -46.17% down YTD and -31.94% over the trailing 3-month period. If we look at the shorter duration, its week performance is 11.59% and 9.24% over the month.

Analyst Recommendations

On April 28, 2020, H.C. Wainwright recommended the SELB stock is a Buy, while earlier, Stifel had Downgrade the stock as a Hold on June 12, 2020. 7 analysts offering the recommendations for the stock have a consensus rating of 1.70 to suggest that the SELB stock is a “Strong Buy. 0 of the 7 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 6 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $2.60. The forecasts give the Selecta Biosciences Inc. stock a price target range of $13.00 on the higher side while at least one analyst think the stock could plunge to a low of $4.00. The two limits represent an upside potential of 80.0% or 35.0%.

Earnings Forecast

Analysts estimate the earnings to decrease -2,400.00% in the current quarter to $0.1, up from the -$0.26 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$0.42, up 469.60% from -$1.22 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.16 and -$0.06. Wall Street estimates earnings per share to be at an average of -$0.23 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 10 over the last 12 months, while SEC filings reveal that there have been 4 insider sales over the same period. Insiders have purchases 1,516,392 shares while those sold by company executives and officers stand at 1,257,927. The last 3 months have seen insiders trade a total of 32,840 and 3,253 in purchases and sales respectively.

BARABE TIMOTHY C, a Director at the company, bought 5,000 shares worth $10000.0 at $2.00 per share on Mar 17. The President and CEO had earlier sold another 3,253 SELB shares valued at $12557.0 on Jun 02. The shares were sold at $3.86 per share. Brunn Carsten (President and CEO) sold 3,374 shares at $3.86 per share on Mar 03 for a total of $13011.0 while Brunn Carsten, (President and CEO) sold 14,272 shares on Dec 02 for $21809.0 with each share fetching $1.53.

Lumber Liquidators Holdings Inc. (NYSE:LL), on the other hand, is trading around $23.99 with a market cap of $676.04M and analyst research firms have a negative stance on its shares. Analysts predict that the stock will reach $19.00 and spell out a less modest performance – a -26.26% return. Some analysts are even forecasting $1.09 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

LL’s operating margin was positive on the trailing 12 months basis, remaining steady at 3.50%, while the operating expenses over the recent quarter were at $83.28 million. This represented a 63.84% of the company’s total revenues which amounted $230.28 million. With this in place, we can see that the company’s diluted EPS inclined $0.09 on the year-over-year period, shrinking to -$0.10 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 $664.48 million from $589.82 million over the previous quarter. The cash flow from operating activities totaled $105.67 million, significantly higher than the -$14.09 million reported in the year-ago quarter. The company’s free cash flow for the quarter was $98.45 million.

Insider activity

Insiders have transacted a total of 28 times at Lumber Liquidators Holdings Inc. over the last 6 months, with insider purchases undertaken 14 times and accounting for 98,048 shares. Insider sales totaled 22,072 shares over the same period, with these deals completed in 14 transactions. Looking at these numbers, we realize that net purchases over that period are 0.0 shares. Insiders now hold a total of 1.22M shares after the latest sales, with 13.40% net shares purchased.

Major holders

Insiders own 2.20% of the company shares, while shares held by institutions stand at 72.60% with a share float percentage of 27.50M. Investors are also buoyed by the number of investors in a company, with Lumber Liquidators Holdings Inc. having a total of 203 institutions that hold shares in the company.