AerCap Holdings N.V. (AER) And MagnaChip Semiconductor Corporation (MX) Saying Scary Stuff?

AerCap Holdings N.V. (NYSE: AER) shares are -51.83% down in the year-to-date (YTD) period and have moved 0.14% or $0.04 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +184.17% lower. Comparatively, the stock is -54.35% down YTD and -16.69% over the trailing 3-month period. If we look at the shorter duration, its week performance is -3.96% and 4.78% over the month.

Analyst Recommendations

On July 30, 2019, Cowen recommended the AER stock is a Outperform, while earlier, BofA/Merrill had Downgrade the stock as a Neutral on June 01, 2020. 10 analysts offering the recommendations for the stock have a consensus rating of 2.30 to suggest that the AER stock is a “Moderate Buy. 0 of the 10 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 7 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $29.61 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $45.14. The forecasts give the AerCap Holdings N.V. stock a price target range of $63.00 on the higher side while at least one analyst think the stock could plunge to a low of $36.00. The two limits represent an upside potential of 53.0% or 17.75%.

Earnings Forecast

Analysts estimate the earnings to increase 40.10% in the current quarter to $1.43, down from the $2.01 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $6.74, down -5.30% from $8.43 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between $0.94 and $1.67. Wall Street estimates earnings per share to be at an average of $6.38 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.

MagnaChip Semiconductor Corporation (NYSE:MX), on the other hand, is trading around $13.21 with a market cap of $453.76M and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $17.25 and spell out a more modest performance – a 23.42% return. Some analysts are even forecasting $0.26 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the MagnaChip Semiconductor Corporation (MX) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

MX’s operating margin was positive on the trailing 12 months basis, remaining steady at 7.60%, while the operating expenses over the recent quarter were at $24.21 million. This represented a 79.63% of the company’s total revenues which amounted $118.83 million. With this in place, we can see that the company’s diluted EPS inclined $0.25 on the year-over-year period, shrinking to -$0.25 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 $615.15 million from $579.96 million over the previous quarter. Short term investments amounted to $11.74 million while total current assets were at $530.12 million. The cash flow from operating activities totaled $57.06 million, significantly higher than the $17.16 million reported in the year-ago quarter. The company’s free cash flow for the quarter was $48.22 million.

Insider activity

Insiders have transacted a total of 17 times at MagnaChip Semiconductor Corporation over the last 6 months, with insider purchases undertaken 17 times and accounting for 257,615 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 17.0 shares. Insiders now hold a total of 889.9k shares after the latest sales, with 65.10% net shares purchased.

Major holders

Insiders own 3.10% of the company shares, while shares held by institutions stand at 96.40% with a share float percentage of 34.04M. Investors are also buoyed by the number of investors in a company, with MagnaChip Semiconductor Corporation having a total of 104 institutions that hold shares in the company. The top two institutional holders are Oaktree Capital Management, LP with over 2.94 million shares worth more than $30.28 million. As of Jun 29, 2020, Oaktree Capital Management, LP held 8.36% of shares outstanding.

The other major institutional holder is Rubric Capital Management LP, with the investment firm holding over 2.61 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $26.91 million and represent 7.43% of shares outstanding.