Are These Stocks Nearing A Big Breakout? – Tronox Holdings plc (TROX), DouYu International Holdings Limited (DOYU)

Tronox Holdings plc (NYSE: TROX) shares are -16.99% down in the year-to-date (YTD) period and have moved 5.80% or $0.52 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +138.79% lower. Comparatively, the stock is -23.55% down YTD and 30.22% over the trailing 3-month period. If we look at the shorter duration, its week performance is 8.10% and 22.96% over the month.

Analyst Recommendations

On January 30, 2018, Morgan Stanley recommended the TROX stock is a Equal-Weight, while earlier, Wells Fargo had Initiated the stock as a Outperform on February 07, 2018. 8 analysts offering the recommendations for the stock have a consensus rating of 2.40 to suggest that the TROX stock is a “Moderate Buy. 1 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 $9.48 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $10.75. The forecasts give the Tronox Holdings plc stock a price target range of $14.00 on the higher side while at least one analyst think the stock could plunge to a low of $6.00. The two limits represent an upside potential of 32.29% or -58.0%.

Earnings Forecast

Analysts estimate the earnings to increase 250.00% in the current quarter to $0.06, down from the $0.21 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $0.43, down -3.90% from $0.47 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.04 and $0.17. Wall Street estimates earnings per share to be at an average of $1.11 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 27 over the last 12 months, while SEC filings reveal that there have been 22 insider sales over the same period. Insiders have purchases 1,001,380 shares while those sold by company executives and officers stand at 175,613. The last 3 months have seen insiders trade a total of 161,720 and 0 in purchases and sales respectively.

Hinman Wayne A, a Director at the company, bought 2,200 shares worth $10296.0 at $4.68 per share on Mar 18. The Director had earlier bought another 30,000 TROX shares valued at $0.15 million on Mar 18. The shares were bought at $4.98 per share. Carlson Timothy C (SVP, Chief Financial Officer) bought 10,000 shares at $6.15 per share on Mar 10 for a total of $61500.0 while Hinman Wayne A, (Director) bought 1,390 shares on Feb 28 for $9925.0 with each share fetching $7.14.

DouYu International Holdings Limited (NASDAQ:DOYU), on the other hand, is trading around $17.54 with a market cap of $5.44B and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $16.34 and spell out a less modest performance – a -7.34% return. Some analysts are even forecasting $0.51 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the DouYu International Holdings Limited (DOYU) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

DOYU’s operating margin was positive on the trailing 12 months basis, remaining steady at 4.70%, while the operating expenses over the recent quarter were at $40.66 million. This represented a 88.53% of the company’s total revenues which amounted $354.42 million. With this in place, we can see that the company’s diluted EPS inclined $0.14 on the year-over-year period, growing to $0.01 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 $1.34 billion from $1.3 billion over the previous quarter. The company’s free cash flow for the quarter was $0.0.

Major holders

Investors are also buoyed by the number of investors in a company, with DouYu International Holdings Limited having a total of 62 institutions that hold shares in the company. The top two institutional holders are FMR, LLC with over 18.09 million shares worth more than $208.77 million. As of Jun 29, 2020, FMR, LLC held 26.85% of shares outstanding.

The other major institutional holder is Vanguard Group, Inc. (The), with the investment firm holding over 2.8 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $32.37 million and represent 4.16% of shares outstanding.