Summarizing The Case For Qurate Retail Inc. (QRTEA), NexTier Oilfield Solutions Inc. (NEX)

Qurate Retail Inc. (NASDAQ: QRTEA) shares are 43.91% up in the year-to-date (YTD) period and have moved -5.16% or -$0.57 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +248.17% lower. Comparatively, the stock is -16.43% down YTD and 37.70% over the trailing 3-month period. If we look at the shorter duration, its week performance is 15.10% and 10.84% over the month.

Analyst Recommendations

On March 20, 2019, Evercore ISI recommended the QRTEA stock is a In-line, while earlier, UBS had Downgrade the stock as a Neutral on April 21, 2020. 7 analysts offering the recommendations for the stock have a consensus rating of 2.60 to suggest that the QRTEA stock is a “Moderate Buy. 0 of the 7 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 $10.48 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $12.83. The forecasts give the Qurate Retail Inc. stock a price target range of $20.00 on the higher side while at least one analyst think the stock could plunge to a low of $7.00. The two limits represent an upside potential of 47.6% or -49.71%.

Earnings Forecast

Analysts estimate the earnings to increase 10.20% in the current quarter to $0.44, up from the $0.42 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $1.93, up 3.40% from $1.93 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between $0.64 and $0.86. Wall Street estimates earnings per share to be at an average of $2.04 for the next year.

Insider Transactions Summary

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

GEORGE MICHAEL A, a President, CEO at the company, bought 50,000 shares worth $0.27 million at $5.46 per share on Mar 06. The Director had earlier sold another 2,048 QRTEA shares valued at $21835.0 on Aug 13. The shares were sold at $10.66 per share. GEORGE MICHAEL A (President, CEO) bought 500,000 shares at $5.44 per share on Mar 05 for a total of $2.72 million while ROSENTHALER ALBERT E, (Chief Corp. Dev. Officer) sold 58,992 shares on Dec 11 for $0.49 million with each share fetching $8.32.

NexTier Oilfield Solutions Inc. (NYSE:NEX), on the other hand, is trading around $2.52 with a market cap of $518.44M and analyst research firms have a negative stance on its shares. Analysts predict that the stock will reach $3.75 and spell out a more modest performance – a 32.8% return. Some analysts are even forecasting -$1.23 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

NEX’s operating margin was negative on the trailing 12 months basis, remaining steady at -13.60%, while the operating expenses over the recent quarter were at $127.13 million. This represented a 35.21% of the company’s total revenues which amounted $196.23 million. With this in place, we can see that the company’s diluted EPS declined -$0.53 on the year-over-year period, shrinking to -$0.05 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 $1.31 billion from $1.79 billion over the previous quarter. The cash flow from operating activities totaled $110.41 million, significantly lower than the $141.93 million reported in the year-ago quarter. The company’s free cash flow for the quarter was $25.58 million.

Insider activity

Insiders have transacted a total of 0 times at NexTier Oilfield Solutions Inc. over the last 6 months, with insider purchases undertaken 0 times and accounting for 0 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 0.0 shares. Insiders now hold a total of 5.45M shares after the latest sales, with 17.80% net shares purchased.

Major holders

Insiders own 2.70% of the company shares, while shares held by institutions stand at 90.80% with a share float percentage of 207.43M. Investors are also buoyed by the number of investors in a company, with NexTier Oilfield Solutions Inc. having a total of 237 institutions that hold shares in the company. The top two institutional holders are Feinberg Stephen with over 40.08 million shares worth more than $98.2 million. As of Jun 29, 2020, Feinberg Stephen held 18.70% of shares outstanding.

The other major institutional holder is Price (T.Rowe) Associates Inc, with the investment firm holding over 20.79 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $50.93 million and represent 9.70% of shares outstanding.