Summarizing The Case For Micro Focus International plc (MFGP), Wrap Technologies Inc. (WRTC)

Micro Focus International plc (NYSE: MFGP) shares are -71.92% down in the year-to-date (YTD) period and have moved -3.43% or -$0.14 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +15.20% lower. Comparatively, the stock is -73.32% down YTD and -36.04% over the trailing 3-month period. If we look at the shorter duration, its week performance is -3.43% and -0.25% over the month.

Analyst Recommendations

On November 05, 2019, Goldman recommended the MFGP stock is a Neutral, while earlier, Credit Suisse had Upgrade the stock as a Neutral on July 08, 2020. 11 analysts offering the recommendations for the stock have a consensus rating of 2.50 to suggest that the MFGP stock is a “Moderate Buy. 1 of the 11 analysts rate the stock as a “Sell”, while 1 has rated it as “Underweight”. 3 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $3.94. The forecasts give the Micro Focus International plc stock a price target range of $15.45 on the higher side while at least one analyst think the stock could plunge to a low of $3.44. The two limits represent an upside potential of 74.5% or -14.53%.

Wrap Technologies Inc. (NASDAQ:WRTC), on the other hand, is trading around $9.45 with a market cap of $330.66M and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $13.00 and spell out a more modest performance – a 27.31% return. Some analysts are even forecasting -$0.33 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

WRTC’s operating expenses over the recent quarter were at $3.68 million. This represented a -341.78% of the company’s total revenues which amounted $0.83 million. With this in place, we can see that the company’s diluted EPS declined -$0.09 on the year-over-year period, shrinking to -$0.07 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 $39.03 million from $19.26 million over the previous quarter. The cash flow from operating activities totaled -$3.9 million, significantly lower than the -$3.73 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$3.97 million.

Insider activity

Insiders have transacted a total of 12 times at Wrap Technologies Inc. over the last 6 months, with insider purchases undertaken 4 times and accounting for 405,334 shares. Insider sales totaled 105,470 shares over the same period, with these deals completed in 8 transactions. Looking at these numbers, we realize that net purchases over that period are -4.0 shares. Insiders now hold a total of 21.82M shares after the latest sales, with 1.80% net shares purchased.

Major holders

Insiders own 2.60% of the company shares, while shares held by institutions stand at 18.20% with a share float percentage of 20.07M. Investors are also buoyed by the number of investors in a company, with Wrap Technologies Inc. having a total of 74 institutions that hold shares in the company. The top two institutional holders are Blackrock Inc. with over 0.72 million shares worth more than $7.58 million. As of Jun 29, 2020, Blackrock Inc. held 2.64% of shares outstanding.

The other major institutional holder is No Street GP LP, with the investment firm holding over 0.6 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $6.29 million and represent 2.19% of shares outstanding.