Are These Stocks Nearing A Big Breakout? – Companhia Energetica de Minas Gerais (CIG), TRI Pointe Group Inc. (TPH)

Companhia Energetica de Minas Gerais (NYSE: CIG) shares are -35.54% down in the year-to-date (YTD) period and have moved 5.61% or $0.11 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +68.75% lower. Comparatively, the stock is -42.40% down YTD and -3.36% over the trailing 3-month period. If we look at the shorter duration, its week performance is -0.48% and -5.48% over the month.

Analyst Recommendations

On April 10, 2019, JP Morgan recommended the CIG stock is a Overweight, while earlier, Goldman had Initiated the stock as a Buy on November 14, 2019. 8 analysts offering the recommendations for the stock have a consensus rating of 1.50 to suggest that the CIG stock is a “Strong Buy. 0 of the 8 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 $2.07 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $2.64. The forecasts give the Companhia Energetica de Minas Gerais stock a price target range of $2.82 on the higher side while at least one analyst think the stock could plunge to a low of $2.12. The two limits represent an upside potential of 26.6% or 2.36%.

TRI Pointe Group Inc. (NYSE:TPH), on the other hand, is trading around $17.82 with a market cap of $2.33B and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $19.79 and spell out a more modest performance – a 9.95% return. Some analysts are even forecasting $1.63 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

TPH’s operating margin was positive on the trailing 12 months basis, remaining steady at 10.60%, while the operating expenses over the recent quarter were at -$3.42 million. This represented a 100.44% of the company’s total revenues which amounted $770.11 million. With this in place, we can see that the company’s diluted EPS inclined $0.43 on the year-over-year period, growing to $0.18 as given in the last earnings report.

The cash flow from operating activities totaled $166.23 million, significantly higher than the -$103.94 million reported in the year-ago quarter. The company’s free cash flow for the quarter was $154.23 million.

Insider activity

Insiders have transacted a total of 7 times at TRI Pointe Group Inc. over the last 6 months, with insider purchases undertaken 5 times and accounting for 47,080 shares. Insider sales totaled 125,861 shares over the same period, with these deals completed in 2 transactions. Looking at these numbers, we realize that net purchases over that period are 3.0 shares. Insiders now hold a total of 2.66M shares after the latest sales, with -2.90% net shares purchased.

Major holders

Insiders own 0.70% of the company shares with a share float percentage of 127.66M. Investors are also buoyed by the number of investors in a company, with TRI Pointe Group Inc. having a total of 354 institutions that hold shares in the company. The top two institutional holders are Blackrock Inc. with over 16.65 million shares worth more than $244.61 million. As of Jun 29, 2020, Blackrock Inc. held 12.78% of shares outstanding.

The other major institutional holder is Vanguard Group, Inc. (The), with the investment firm holding over 12.53 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $184.0 million and represent 9.61% of shares outstanding.