Investing action plan for Caesars Entertainment Inc. (CZR) And CNX Resources Corporation (CNX)

Caesars Entertainment Inc. (NASDAQ: CZR) shares are -21.43% down in the year-to-date (YTD) period and have moved 2.31% or $1.06 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +678.41% lower. Comparatively, the stock is -33.76% down YTD and 20.52% over the trailing 3-month period. If we look at the shorter duration, its week performance is 6.84% and 45.44% over the month.

Analyst Recommendations

On July 21, 2020, Wolfe Research recommended the CZR stock is a Outperform, while earlier, JP Morgan had Resumed the stock as a Overweight on August 13, 2020.

The stock currently trades at $46.86 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $56.33. The consensus price target represents an upside potential 16.81.

Earnings Forecast

Analysts estimate the earnings to increase 62.60% in the current quarter to -$2.35, down from the $0.47 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$6.43, up 61.90% from $1.03 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$1.25 and -$0.51. Wall Street estimates earnings per share to be at an average of -$1.29 for the next year.

Insider Transactions Summary

Broome Richard D, a EVP Communications-Gov Rltns at the company, sold 118,668 shares worth $1.55 million at $13.02 per share on Nov 21. The Director had earlier sold another 9,000 CZR shares valued at $0.12 million on Nov 25. The shares were sold at $13.10 per share.

CNX Resources Corporation (NYSE:CNX), on the other hand, is trading around $10.63 with a market cap of $1.98B and analyst research firms have a negative stance on its shares. Analysts predict that the stock will reach $13.13 and spell out a more modest performance – a 19.04% return. Some analysts are even forecasting $0.68 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

CNX’s operating margin was negative on the trailing 12 months basis, remaining steady at -84.40%, while the operating expenses over the recent quarter were at $46.26 million. This represented a 68.92% of the company’s total revenues which amounted $148.84 million. With this in place, we can see that the company’s diluted EPS declined -$0.70 on the year-over-year period, growing to $1.00 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 $8.18 billion from $8.37 billion over the previous quarter. The cash flow from operating activities totaled $411.19 million, significantly lower than the $560.67 million reported in the year-ago quarter. The company’s free cash flow for the quarter was $124.28 million.

Insider activity

Insiders have transacted a total of 5 times at CNX Resources Corporation over the last 6 months, with insider purchases undertaken 5 times and accounting for 150,358 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 5.0 shares. Insiders now hold a total of 4.2M shares after the latest sales, with 3.90% net shares purchased.

Major holders

Insiders own 0.40% of the company shares, while shares held by institutions stand at 97.70% with a share float percentage of 182.60M. Investors are also buoyed by the number of investors in a company, with CNX Resources Corporation having a total of 304 institutions that hold shares in the company. The top two institutional holders are Southeastern Asset Management Inc/tn/ with over 36.99 million shares worth more than $319.94 million. As of Jun 29, 2020, Southeastern Asset Management Inc/tn/ held 19.73% of shares outstanding.

The other major institutional holder is Blackrock Inc., with the investment firm holding over 21.89 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $189.37 million and represent 11.68% of shares outstanding.