Stocks That Should Surprise the Market: Winnebago Industries Inc. (WGO), MongoDB Inc. (MDB)

Winnebago Industries Inc. (NYSE: WGO) shares are 1.09% up in the year-to-date (YTD) period and have moved -0.78% or -$0.42 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +216.17% lower. Comparatively, the stock is -26.28% down YTD and -11.73% over the trailing 3-month period. If we look at the shorter duration, its week performance is -8.19% and -14.50% over the month.

Analyst Recommendations

On July 06, 2020, Citigroup recommended the WGO stock is a Neutral, while earlier, CFRA had Upgrade the stock as a Buy on September 01, 2020. 10 analysts offering the recommendations for the stock have a consensus rating of 2.20 to suggest that the WGO stock is a “Moderate Buy. 0 of the 10 analysts rate the stock as a “Sell”, while 1 has rated it as “Underweight”. 3 recommend buying, with 2 rating it as an Overweight.

The stock currently trades at $53.56 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $67.33. The forecasts give the Winnebago Industries Inc. stock a price target range of $80.00 on the higher side while at least one analyst think the stock could plunge to a low of $60.00. The two limits represent an upside potential of 33.05% or 10.73%.

Earnings Forecast

Analysts estimate the earnings to increase 40.90% in the current quarter to $0.88, down from the $1.03 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $2.03, up 17.50% from $3.54 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between $0.7 and $1.1. Wall Street estimates earnings per share to be at an average of $3.98 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 27 over the last 12 months, while SEC filings reveal that there have been 41 insider sales over the same period. Insiders have purchases 634,891 shares while those sold by company executives and officers stand at 56,216. The last 3 months have seen insiders trade a total of 0 and 5,083 in purchases and sales respectively.

Bhattacharya Ashis Nayan, a VP-Strategic Dev. & Planning at the company, sold 1,156 shares worth $70918.0 at $61.35 per share on Jul 08. The VP-Strategic Dev. & Planning had earlier sold another 3,927 WGO shares valued at $0.25 million on Jul 21. The shares were sold at $63.52 per share. West Christopher David (VP-Operations) sold 1,614 shares at $35.42 per share on Apr 20 for a total of $57173.0 while Happe Michael J, (President & CEO) bought 3,000 shares on Apr 09 for $0.11 million with each share fetching $37.53.

MongoDB Inc. (NASDAQ:MDB), on the other hand, is trading around $250.72 with a market cap of $14.66B and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $238.50 and spell out a less modest performance – a -5.12% return. Some analysts are even forecasting -$1.26 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

MDB’s operating margin was negative on the trailing 12 months basis, remaining steady at -34.50%, while the operating expenses over the recent quarter were at $135.37 million. This represented a -3.87% of the company’s total revenues which amounted $130.33 million. With this in place, we can see that the company’s diluted EPS declined -$0.94 on the year-over-year period, shrinking to -$0.61 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 $1.34 billion from $1.33 billion over the previous quarter. Short term investments amounted to $276.37 million while total current assets were at $1.1 billion. The cash flow from operating activities totaled -$5.88 million, significantly lower than the $3.21 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$7.38 million.

Insider activity

Insiders have transacted a total of 188 times at MongoDB Inc. over the last 6 months, with insider purchases undertaken 34 times and accounting for 1,921,357 shares. Insider sales totaled 344,438 shares over the same period, with these deals completed in 154 transactions. Looking at these numbers, we realize that net purchases over that period are -120.0 shares. Insiders now hold a total of 458.61k shares after the latest sales, with -134.20% net shares purchased.

Major holders

Insiders own 5.90% of the company shares, while shares held by institutions stand at 89.80% with a share float percentage of 50.27M. Investors are also buoyed by the number of investors in a company, with MongoDB Inc. having a total of 446 institutions that hold shares in the company. The top two institutional holders are Capital World Investors with over 7.01 million shares worth more than $1.59 billion. As of Jun 29, 2020, Capital World Investors held 13.84% of shares outstanding.

The other major institutional holder is FMR, LLC, with the investment firm holding over 5.65 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $1.28 billion and represent 11.15% of shares outstanding.