Exploring Strategic Opportunities: Titan Medical Inc. (TMDI), Rosetta Stone Inc. (RST)

Titan Medical Inc. (NASDAQ: TMDI) shares are 75.05% up in the year-to-date (YTD) period and have moved 10.10% or $0.08 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +609.66% lower. Comparatively, the stock is -50.49% down YTD and 212.97% over the trailing 3-month period. If we look at the shorter duration, its week performance is 14.01% and -1.53% over the month.

Analyst Recommendations

0 of the 1 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 0 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $0.87. The forecasts give the Titan Medical Inc. stock a price target range of $1.00 on the higher side while at least one analyst think the stock could plunge to a low of $1.00. The two limits represent an upside potential of 13.0% or 13.0%.

Rosetta Stone Inc. (NYSE:RST), on the other hand, is trading around $29.99 with a market cap of $695.47M and analyst research firms have a negative stance on its shares. Analysts predict that the stock will reach $21.40 and spell out a less modest performance – a -40.14% return. Some analysts are even forecasting -$0.88 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

RST’s operating margin was negative on the trailing 12 months basis, remaining steady at -9.30%, while the operating expenses over the recent quarter were at $41.53 million. This represented a 15.58% of the company’s total revenues which amounted $49.2 million. With this in place, we can see that the company’s diluted EPS declined -$0.15 on the year-over-year period, shrinking to -$0.12 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 $191.0 million from $182.61 million over the previous quarter. The cash flow from operating activities totaled -$3.81 million, significantly higher than the -$21.41 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$11.4 million.

Insider activity

Insiders have transacted a total of 20 times at Rosetta Stone Inc. over the last 6 months, with insider purchases undertaken 6 times and accounting for 109,384 shares. Insider sales totaled 81,948 shares over the same period, with these deals completed in 14 transactions. Looking at these numbers, we realize that net purchases over that period are -8.0 shares. Insiders now hold a total of 1.14M shares after the latest sales, with 12.10% net shares purchased.

Major holders

Insiders own 3.20% of the company shares, while shares held by institutions stand at 91.10% with a share float percentage of 23.62M. Investors are also buoyed by the number of investors in a company, with Rosetta Stone Inc. having a total of 159 institutions that hold shares in the company. The top two institutional holders are Price (T.Rowe) Associates Inc with over 2.31 million shares worth more than $38.98 million. As of Jun 29, 2020, Price (T.Rowe) Associates Inc held 9.40% of shares outstanding.

The other major institutional holder is Blackrock Inc., with the investment firm holding over 1.75 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $29.44 million and represent 7.10% of shares outstanding.