A Pair of Stock To Put On Your Watchlist: OrganiGram Holdings Inc. (OGI), Discovery Inc. (DISCK)

OrganiGram Holdings Inc. (NASDAQ: OGI) shares are -49.80% down in the year-to-date (YTD) period and have moved -2.38% or -$0.03 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +12.84% lower. Comparatively, the stock is -66.21% down YTD and -31.67% over the trailing 3-month period. If we look at the shorter duration, its week performance is -4.65% and -3.91% over the month.

Analyst Recommendations

On January 15, 2020, Raymond James recommended the OGI stock is a Outperform, while earlier, Alliance Global Partners had Initiated the stock as a Buy on July 07, 2020. 0 of the 16 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 8 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $1.23. The forecasts give the OrganiGram Holdings Inc. stock a price target range of $3.72 on the higher side while at least one analyst think the stock could plunge to a low of $1.30. The two limits represent an upside potential of 66.94% or 5.38%.

Analysts predict that the stock will reach $24.33 and spell out a more modest performance – a 20.43% return. Some analysts are even forecasting $2.85 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

DISCK’s operating expenses over the recent quarter were at $1.01 billion. This represented a 60.09% of the company’s total revenues which amounted $2.54 billion. With this in place, we can see that the company’s diluted EPS inclined $0.40 on the year-over-year period, growing to $1.33 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 $33.09 billion from $33.39 billion over the previous quarter. The cash flow from operating activities totaled $1.33 billion, significantly higher than the $1.22 billion reported in the year-ago quarter. The company’s free cash flow for the quarter was $1.11 billion.

Insider activity

Insiders have transacted a total of 19 times at Discovery Inc. over the last 6 months, with insider purchases undertaken 11 times and accounting for 74,448 shares. Insider sales totaled 222,538 shares over the same period, with these deals completed in 8 transactions. Looking at these numbers, we realize that net purchases over that period are 3.0 shares. Insiders now hold a total of 31.78M shares after the latest sales, with -1.10% net shares purchased.

Major holders

Insiders own 4.72% of the company shares, while shares held by institutions stand at 87.50% with a share float percentage of 470.02M. Investors are also buoyed by the number of investors in a company, with Discovery Inc. having a total of 729 institutions that hold shares in the company. The top two institutional holders are Vanguard Group, Inc. (The) with over 36.11 million shares worth more than $695.48 million. As of Jun 29, 2020, Vanguard Group, Inc. (The) held 10.62% of shares outstanding.

The other major institutional holder is Blackrock Inc., with the investment firm holding over 22.99 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $442.79 million and represent 6.76% of shares outstanding.