Well positioned to deliver growth? – cbdMD Inc. (YCBD), Plug Power Inc. (PLUG)

cbdMD Inc. (AMEX: YCBD) shares are 9.29% up in the year-to-date (YTD) period and have moved -8.86% or -$0.24 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +392.03% lower. Comparatively, the stock is -39.76% down YTD and 59.35% over the trailing 3-month period. If we look at the shorter duration, its week performance is -9.52% and -25.15% over the month.

Analyst Recommendations

2 analysts offering the recommendations for the stock have a consensus rating of 2.30 to suggest that the YCBD stock is a “Moderate Buy. 0 of the 2 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 $2.47. The forecasts give the cbdMD Inc. stock a price target range of $8.00 on the higher side while at least one analyst think the stock could plunge to a low of $3.60. The two limits represent an upside potential of 69.12% or 31.39%.

Earnings Forecast

Analysts estimate the earnings to decrease -466.70% in the current quarter to -$0.01, down from the $0.79 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $0.72, up 75.00% from -$2.54 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.02 and -$0.02. Wall Street estimates earnings per share to be at an average of -$0.08 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 15 over the last 12 months, while SEC filings reveal that there have been 3 insider sales over the same period. Insiders have purchases 11,919,286 shares while those sold by company executives and officers stand at 8,760,000. The last 3 months have seen insiders trade a total of 0 and 10,000 in purchases and sales respectively.

Ghiloni Peter J., a Director at the company, bought 25,000 shares worth $18720.0 at $0.75 per share on Mar 09. The Director had earlier sold another 10,000 YCBD shares valued at $34300.0 on Aug 14. The shares were sold at $3.43 per share. Elliott Mark S (CFO & COO) bought 5,000 shares at $1.06 per share on Jan 27 for a total of $5300.0 while Coffman Raymond Scott, (CO-CEO) bought 125,000 shares on Jan 14 for $0.13 million with each share fetching $1.00.

Plug Power Inc. (NASDAQ:PLUG), on the other hand, is trading around $12.98 with a market cap of $4.88B and analyst research firms have a negative stance on its shares. Analysts predict that the stock will reach $13.34 and spell out a more modest performance – a 2.7% return. Some analysts are even forecasting -$0.29 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Plug Power Inc. (PLUG) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

PLUG’s operating margin was negative on the trailing 12 months basis, remaining steady at -20.20%, while the operating expenses over the recent quarter were at $32.41 million. This represented a 52.39% of the company’s total revenues which amounted $68.07 million. With this in place, we can see that the company’s diluted EPS declined -$0.03 on the year-over-year period, shrinking to -$0.08 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 $1.03 billion from $748.54 million over the previous quarter. The cash flow from operating activities totaled -$111.25 million, significantly lower than the -$48.49 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$116.26 million.

Insider activity

Insiders have transacted a total of 82 times at Plug Power Inc. over the last 6 months, with insider purchases undertaken 55 times and accounting for 5,505,635 shares. Insider sales totaled 7,447,375 shares over the same period, with these deals completed in 27 transactions. Looking at these numbers, we realize that net purchases over that period are 28.0 shares. Insiders now hold a total of 3.54M shares after the latest sales, with -2.20% net shares purchased.

Major holders

Insiders own 0.70% of the company shares, while shares held by institutions stand at 50.80% with a share float percentage of 347.99M. Investors are also buoyed by the number of investors in a company, with Plug Power Inc. having a total of 266 institutions that hold shares in the company.