Have Analysts Changed Their Mind About Sasol Limited (SSL), Cloudera Inc. (CLDR)

Sasol Limited (NYSE: SSL) shares are -60.62% down in the year-to-date (YTD) period and have moved 6.11% or $0.49 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +580.80% lower. Comparatively, the stock is -62.35% down YTD and 11.10% over the trailing 3-month period. If we look at the shorter duration, its week performance is -1.73% and 3.53% over the month.

Analyst Recommendations

On December 18, 2019, BofA/Merrill recommended the SSL stock is a Buy, while earlier, HSBC Securities had Upgrade the stock as a Buy on February 12, 2020. 10 analysts offering the recommendations for the stock have a consensus rating of 3.00 to suggest that the SSL stock is a “Hold. 1 of the 10 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 4 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $8.51 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $8.90. The forecasts give the Sasol Limited stock a price target range of $12.00 on the higher side while at least one analyst think the stock could plunge to a low of $5.73. The two limits represent an upside potential of 29.08% or -48.52%.

Cloudera Inc. (NYSE:CLDR), on the other hand, is trading around $13.86 with a market cap of $3.93B and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $12.21 and spell out a less modest performance – a -13.51% return. Some analysts are even forecasting $0.28 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

CLDR’s operating margin was negative on the trailing 12 months basis, remaining steady at -35.70%, while the operating expenses over the recent quarter were at $212.27 million. This represented a -0.86% of the company’s total revenues which amounted $210.46 million. With this in place, we can see that the company’s diluted EPS declined -$0.20 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 (Jul 2020), the total assets figure advanced to $2.2 billion from $2.3 billion over the previous quarter. Short term investments amounted to $251.03 million while total current assets were at $658.41 million. The cash flow from operating activities totaled $68.36 million, significantly higher than the $11.46 million reported in the year-ago quarter. The company’s free cash flow for the quarter was $67.27 million.

Insider activity

Insiders have transacted a total of 50 times at Cloudera Inc. over the last 6 months, with insider purchases undertaken 31 times and accounting for 1,692,866 shares. Insider sales totaled 1,630,059 shares over the same period, with these deals completed in 19 transactions. Looking at these numbers, we realize that net purchases over that period are 12.0 shares. Insiders now hold a total of 7.53M shares after the latest sales, with 24.80% net shares purchased.

Major holders

Insiders own 1.40% of the company shares, while shares held by institutions stand at 83.00% with a share float percentage of 289.38M. Investors are also buoyed by the number of investors in a company, with Cloudera Inc. having a total of 303 institutions that hold shares in the company. The top two institutional holders are Icahn, Carl, C. with over 52.33 million shares worth more than $665.6 million. As of Jun 29, 2020, Icahn, Carl, C. held 17.71% of shares outstanding.

The other major institutional holder is Intel Corporation, with the investment firm holding over 26.07 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $331.56 million and represent 8.82% of shares outstanding.