Have Analysts Changed Their Mind About Acasti Pharma Inc. (ACST), Drive Shack Inc. (DS)

Acasti Pharma Inc. (NASDAQ: ACST) shares are -91.02% down in the year-to-date (YTD) period and have moved -10.13% or -$0.02 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +4.71% lower. Comparatively, the stock is -91.34% down YTD and -75.15% over the trailing 3-month period. If we look at the shorter duration, its week performance is -67.18% and -72.51% over the month.

Analyst Recommendations

On July 06, 2020, B. Riley FBR recommended the ACST stock is a Buy, while earlier, Oppenheimer had Downgrade the stock as a Perform on September 01, 2020. 5 analysts offering the recommendations for the stock have a consensus rating of 2.00 to suggest that the ACST stock is a “Moderate Buy. 1 of the 5 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 2 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $0.22. The forecasts give the Acasti Pharma Inc. stock a price target range of $2.27 on the higher side while at least one analyst think the stock could plunge to a low of $0.11. The two limits represent an upside potential of 90.31% or -100.0%.

Drive Shack Inc. (NYSE:DS), on the other hand, is trading around $1.44 with a market cap of $94.80M and analyst research firms have a positive stance on its shares. Some analysts are even forecasting -$1.31 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

DS’s operating margin was negative on the trailing 12 months basis, remaining steady at -27.00%, while the operating expenses over the recent quarter were at $0.14 million. This represented a 99.58% of the company’s total revenues which amounted $32.1 million. With this in place, we can see that the company’s diluted EPS declined -$0.59 on the year-over-year period, shrinking to -$0.19 as given in the last earnings report.

The cash flow from operating activities totaled -$5.68 million, significantly higher than the -$24.23 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$13.39 million.

Insider activity

Insiders have transacted a total of 6 times at Drive Shack Inc. over the last 6 months, with insider purchases undertaken 5 times and accounting for 1,022,555 shares. Insider sales totaled 2,394 shares over the same period, with these deals completed in 1 transactions. Looking at these numbers, we realize that net purchases over that period are 4.0 shares. Insiders now hold a total of 8.99M shares after the latest sales, with 24.60% net shares purchased.

Major holders

Insiders own 7.10% of the company shares, while shares held by institutions stand at 42.80% with a share float percentage of 58.29M. Investors are also buoyed by the number of investors in a company, with Drive Shack Inc. having a total of 122 institutions that hold shares in the company. The top two institutional holders are Price (T.Rowe) Associates Inc with over 5.7 million shares worth more than $10.54 million. As of Jun 29, 2020, Price (T.Rowe) Associates Inc held 8.48% of shares outstanding.

The other major institutional holder is American Assets Capital Advisers, LLC, with the investment firm holding over 4.22 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $7.81 million and represent 6.28% of shares outstanding.