Stocks that are not receiving major attention: Nikola Corporation (NKLA), Immunomedics Inc. (IMMU)

Nikola Corporation (NASDAQ: NKLA) shares are 297.29% up in the year-to-date (YTD) period and have moved 0.47% or $0.19 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +298.06% lower. Comparatively, the stock is -56.38% down YTD and 20.69% over the trailing 3-month period. If we look at the shorter duration, its week performance is 4.65% and 12.36% over the month.

Analyst Recommendations

On July 16, 2020, Deutsche Bank recommended the NKLA stock is a Hold, while earlier, Wedbush had Initiated the stock as a Neutral on August 26, 2020. 5 analysts offering the recommendations for the stock have a consensus rating of 2.60 to suggest that the NKLA stock is a “Moderate Buy. 0 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 $41.00 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $55.00. The forecasts give the Nikola Corporation stock a price target range of $79.00 on the higher side while at least one analyst think the stock could plunge to a low of $45.00. The two limits represent an upside potential of 48.1% or 8.89%.

Earnings Forecast

Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.41 and -$0.18. Wall Street estimates earnings per share to be at an average of -$1.14 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 18 over the last 12 months, while SEC filings reveal that there have been 1 insider sales over the same period. Insiders have purchases 156,290,849 shares while those sold by company executives and officers stand at 1,400,000. The last 3 months have seen insiders trade a total of 156,290,849 and 1,400,000 in purchases and sales respectively.

The Director had earlier sold another 1,400,000 NKLA shares valued at $59.77 million on Aug 11. The shares were sold at $42.69 per share.

Immunomedics Inc. (NASDAQ:IMMU), on the other hand, is trading around $44.20 with a market cap of $9.98B and analyst research firms have a negative stance on its shares. Analysts predict that the stock will reach $52.24 and spell out a more modest performance – a 15.39% return. Some analysts are even forecasting -$1.12 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

IMMU’s operating expenses over the recent quarter were at $72.09 million. This represented a -259.1% of the company’s total revenues which amounted $20.07 million. With this in place, we can see that the company’s diluted EPS declined -$0.30 on the year-over-year period, shrinking to -$0.40 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 $1.08 billion from $594.11 million over the previous quarter. Short term investments amounted to $4.33 million while total current assets were at $1.04 billion. The cash flow from operating activities totaled -$102.69 million, significantly lower than the -$67.17 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$104.02 million.

Insider activity

Insiders have transacted a total of 10 times at Immunomedics Inc. over the last 6 months, with insider purchases undertaken 10 times and accounting for 1,859,460 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 10.0 shares. Insiders now hold a total of 316.67k shares after the latest sales, with -119.20% net shares purchased.

Major holders

Insiders own 0.10% of the company shares, while shares held by institutions stand at 90.80% with a share float percentage of 204.62M. Investors are also buoyed by the number of investors in a company, with Immunomedics Inc. having a total of 327 institutions that hold shares in the company. The top two institutional holders are Avoro Capital Advisors LLC with over 26.25 million shares worth more than $930.3 million. As of Jun 29, 2020, Avoro Capital Advisors LLC held 11.36% of shares outstanding.

The other major institutional holder is Vanguard Group, Inc. (The), with the investment firm holding over 18.86 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $668.54 million and represent 8.16% of shares outstanding.