Exploring Strategic Opportunities: Gerdau S.A. (GGB), Titan Pharmaceuticals Inc. (TTNP)

Gerdau S.A. (NYSE: GGB) shares are -23.88% down in the year-to-date (YTD) period and have moved 6.57% or $0.23 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +126.06% lower. Comparatively, the stock is -30.19% down YTD and 22.70% over the trailing 3-month period. If we look at the shorter duration, its week performance is 4.48% and 13.03% over the month.

Analyst Recommendations

On July 24, 2020, Itau BBA recommended the GGB stock is a Outperform, while earlier, JP Morgan had Upgrade the stock as a Overweight on August 19, 2020. 11 analysts offering the recommendations for the stock have a consensus rating of 2.70 to suggest that the GGB stock is a “Moderate Buy. 0 of the 11 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 $3.73 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $4.88. The forecasts give the Gerdau S.A. stock a price target range of $4.37 on the higher side while at least one analyst think the stock could plunge to a low of $2.90. The two limits represent an upside potential of 14.65% or -28.62%.

Earnings Forecast

Analysts estimate the earnings to increase 150.00% in the current quarter to $0.09, up from the $0.04 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $0.03, down -8.30% from $0.13 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.05 and $0.04. Wall Street estimates earnings per share to be at an average of $0.18 for the next year.

Titan Pharmaceuticals Inc. (NASDAQ:TTNP), on the other hand, is trading around $0.21 with a market cap of $20.30M and analyst research firms have a negative stance on its shares. Some analysts are even forecasting -$0.16 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

TTNP’s operating expenses over the recent quarter were at $5.71 million. This represented a -330.87% 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 -$0.05 on the year-over-year period, shrinking to -$0.38 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 $9.76 million from $13.26 million over the previous quarter. The cash flow from operating activities totaled -$9.2 million, significantly lower than the -$8.46 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$9.28 million.

Insider activity

Insiders have transacted a total of 0 times at Titan Pharmaceuticals Inc. over the last 6 months, with insider purchases undertaken 0 times and accounting for 0 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 0.0 shares. Insiders now hold a total of 292.64k shares after the latest sales, with 0.00% net shares purchased.

Major holders

Insiders own 0.30% of the company shares, while shares held by institutions stand at 6.10% with a share float percentage of 95.38M. Investors are also buoyed by the number of investors in a company, with Titan Pharmaceuticals Inc. having a total of 33 institutions that hold shares in the company.