Well positioned to deliver growth? – Top Ships Inc. (TOPS), Novan Inc. (NOVN)

Top Ships Inc. (NASDAQ: TOPS) shares are -93.55% down in the year-to-date (YTD) period and have moved -3.01% or -$0.04 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +27.72% lower. Comparatively, the stock is -95.51% down YTD and -61.43% over the trailing 3-month period. If we look at the shorter duration, its week performance is -5.84% and -48.50% over the month.

Analyst Recommendations

On April 22, 2019, Maxim Group recommended the TOPS stock is a Buy, while earlier, Maxim Group had Downgrade the stock as a Hold on July 13, 2020.

Earnings Forecast

For the current year, earnings should grow to an average of -$0.27, down -5.60% from -$264.5 reported last year. 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 0 over the last 12 months, while SEC filings reveal that there have been 0 insider sales over the same period. Insiders have purchases 0 shares while those sold by company executives and officers stand at 0. The last 3 months have seen insiders trade a total of 0 and 0 in purchases and sales respectively.

Novan Inc. (NASDAQ:NOVN), on the other hand, is trading around $0.46 with a market cap of $62.45M and analyst research firms have a negative stance on its shares. Some analysts are even forecasting -$0.3 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

NOVN’s operating expenses over the recent quarter were at -$8.09 million. This represented a 712.64% of the company’s total revenues which amounted $1.32 million. With this in place, we can see that the company’s diluted EPS declined -$0.10 on the year-over-year period, shrinking to -$0.32 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 $46.86 million from $36.51 million over the previous quarter. The cash flow from operating activities totaled -$13.79 million, significantly lower than the -$0.93 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$14.15 million.

Insider activity

Insiders have transacted a total of 2 times at Novan Inc. over the last 6 months, with insider purchases undertaken 2 times and accounting for 207,000 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 2.0 shares. Insiders now hold a total of 25.02M shares after the latest sales, with 0.80% net shares purchased.

Major holders

Insiders own 0.40% of the company shares, while shares held by institutions stand at 4.90% with a share float percentage of 124.81M. Investors are also buoyed by the number of investors in a company, with Novan Inc. having a total of 27 institutions that hold shares in the company. The top two institutional holders are Vanguard Group, Inc. (The) with over 1.69 million shares worth more than $0.82 million. As of Jun 29, 2020, Vanguard Group, Inc. (The) held 1.23% of shares outstanding.

The other major institutional holder is Acadian Asset Management, with the investment firm holding over 0.55 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $0.27 million and represent 0.40% of shares outstanding.