Stocks To Watch With Trade Uncertainty This High – Amneal Pharmaceuticals Inc. (AMRX), Zendesk Inc. (ZEN)

Amneal Pharmaceuticals Inc. (NYSE: AMRX) shares are -17.63% down in the year-to-date (YTD) period and have moved -3.41% or -$0.14 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +65.42% lower. Comparatively, the stock is -30.11% down YTD and -17.12% over the trailing 3-month period. If we look at the shorter duration, its week performance is -1.00% and -15.71% over the month.

Analyst Recommendations

On May 12, 2020, Guggenheim recommended the AMRX stock is a Neutral, while earlier, Goldman had Initiated the stock as a Sell on July 27, 2020. 11 analysts offering the recommendations for the stock have a consensus rating of 3.00 to suggest that the AMRX stock is a “Hold. 2 of the 11 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 $3.97 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $4.25. The forecasts give the Amneal Pharmaceuticals Inc. stock a price target range of $6.00 on the higher side while at least one analyst think the stock could plunge to a low of $3.00. The two limits represent an upside potential of 33.83% or -32.33%.

Earnings Forecast

Analysts estimate the earnings to increase 30.00% in the current quarter to $0.11, up from the $0.04 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $0.58, up 18.50% from $0.35 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between $0.09 and $0.18. Wall Street estimates earnings per share to be at an average of $0.69 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 32 over the last 12 months, while SEC filings reveal that there have been 8 insider sales over the same period. Insiders have purchases 1,486,952 shares while those sold by company executives and officers stand at 44,463. The last 3 months have seen insiders trade a total of 55,846 and 0 in purchases and sales respectively.

George Jeffrey P., a Director at the company, bought 23,810 shares worth $99050.0 at $4.16 per share on May 15. The Director had earlier bought another 10,000 AMRX shares valued at $44000.0 on May 19. The shares were bought at $4.40 per share. MEISTER PAUL M (Director) bought 204,210 shares at $2.71 per share on Mar 18 for a total of $0.55 million while MEISTER PAUL M, (Director) bought 149,439 shares on Mar 17 for $0.42 million with each share fetching $2.79.

Zendesk Inc. (NYSE:ZEN), on the other hand, is trading around $103.10 with a market cap of $11.68B and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $108.17 and spell out a more modest performance – a 4.69% return. Some analysts are even forecasting $0.47 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

ZEN’s operating margin was negative on the trailing 12 months basis, remaining steady at -18.00%, while the operating expenses over the recent quarter were at $217.16 million. This represented a 11.96% of the company’s total revenues which amounted $246.66 million. With this in place, we can see that the company’s diluted EPS declined -$0.56 on the year-over-year period, shrinking to -$0.50 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 $2.0 billion from $1.49 billion over the previous quarter. Short term investments amounted to $296.83 million while total current assets were at $1.23 billion. The cash flow from operating activities totaled -$53.32 million, significantly lower than the $36.83 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$68.88 million.

Insider activity

Insiders have transacted a total of 536 times at Zendesk Inc. over the last 6 months, with insider purchases undertaken 258 times and accounting for 237,180 shares. Insider sales totaled 333,946 shares over the same period, with these deals completed in 278 transactions. Looking at these numbers, we realize that net purchases over that period are -20.0 shares. Insiders now hold a total of 1.59M shares after the latest sales, with -5.10% net shares purchased.

Major holders

Insiders own 1.20% of the company shares, while shares held by institutions stand at 98.92% with a share float percentage of 113.64M. Investors are also buoyed by the number of investors in a company, with Zendesk Inc. having a total of 459 institutions that hold shares in the company. The top two institutional holders are Price (T.Rowe) Associates Inc with over 10.78 million shares worth more than $954.13 million. As of Jun 29, 2020, Price (T.Rowe) Associates Inc held 9.34% of shares outstanding.

The other major institutional holder is Vanguard Group, Inc. (The), with the investment firm holding over 10.48 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $927.49 million and represent 9.08% of shares outstanding.