These 2 Stocks Seize Spotlight: Karyopharm Therapeutics Inc. (KPTI), Zscaler Inc. (ZS)

Karyopharm Therapeutics Inc. (NASDAQ: KPTI) shares are -19.93% down in the year-to-date (YTD) period and have moved 0.92% or $0.14 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +14.64% lower. Comparatively, the stock is -48.16% down YTD and -12.78% over the trailing 3-month period. If we look at the shorter duration, its week performance is 5.28% and -8.96% over the month.

Analyst Recommendations

On March 04, 2020, Barclays recommended the KPTI stock is a Overweight, while earlier, Morgan Stanley had Initiated the stock as a Overweight on July 02, 2020. 10 analysts offering the recommendations for the stock have a consensus rating of 1.70 to suggest that the KPTI stock is a “Strong Buy. 0 of the 10 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 8 recommend buying, with 1 rating it as an Overweight.

The stock currently trades at $15.35. The forecasts give the Karyopharm Therapeutics Inc. stock a price target range of $41.00 on the higher side while at least one analyst think the stock could plunge to a low of $20.00. The two limits represent an upside potential of 62.56% or 23.25%.

Earnings Forecast

Analysts estimate the earnings to decrease -8.60% in the current quarter to -$0.69, down from the -$0.67 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$2.61, up 178.50% from -$3.22 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.78 and $0.14. Wall Street estimates earnings per share to be at an average of -$1.71 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 52 over the last 12 months, while SEC filings reveal that there have been 61 insider sales over the same period. Insiders have purchases 430,693 shares while those sold by company executives and officers stand at 423,622. The last 3 months have seen insiders trade a total of 77,954 and 70,454 in purchases and sales respectively.

Kauffman Michael, a Chief Executive Officer at the company, sold 1,477 shares worth $22155.0 at $15.00 per share on Aug 17. The Chief Commercial Officer had earlier bought another 7,500 KPTI shares valued at $0.11 million on Aug 26. The shares were bought at $14.54 per share. Shacham Sharon (President & CSO) sold 1,477 shares at $15.00 per share on Aug 17 for a total of $22155.0 while Shacham Sharon, (President & CSO) sold 7,500 shares on Jul 15 for $0.15 million with each share fetching $19.43.

Zscaler Inc. (NASDAQ:ZS), on the other hand, is trading around $159.36 with a market cap of $20.45B and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $113.30 and spell out a less modest performance – a -40.65% return. Some analysts are even forecasting $0.21 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

ZS’s operating margin was negative on the trailing 12 months basis, remaining steady at -19.70%, while the operating expenses over the recent quarter were at $107.04 million. This represented a 3.15% of the company’s total revenues which amounted $110.52 million. With this in place, we can see that the company’s diluted EPS declined -$0.15 on the year-over-year period, shrinking to -$0.10 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 $735.96 million from $676.42 million over the previous quarter. Short term investments amounted to $266.72 million while total current assets were at $552.12 million. The cash flow from operating activities totaled $47.68 million, significantly higher than the $40.2 million reported in the year-ago quarter. The company’s free cash flow for the quarter was $16.59 million.

Insider activity

Insiders have transacted a total of 251 times at Zscaler Inc. over the last 6 months, with insider purchases undertaken 45 times and accounting for 902,098 shares. Insider sales totaled 1,099,800 shares over the same period, with these deals completed in 206 transactions. Looking at these numbers, we realize that net purchases over that period are -161.0 shares. Insiders now hold a total of 59.44M shares after the latest sales, with -0.30% net shares purchased.

Major holders

Insiders own 0.90% of the company shares, while shares held by institutions stand at 43.30% with a share float percentage of 71.38M. Investors are also buoyed by the number of investors in a company, with Zscaler Inc. having a total of 379 institutions that hold shares in the company. The top two institutional holders are Vanguard Group, Inc. (The) with over 6.69 million shares worth more than $732.37 million. As of Jun 29, 2020, Vanguard Group, Inc. (The) held 5.17% of shares outstanding.

The other major institutional holder is Blackrock Inc., with the investment firm holding over 5.4 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $591.47 million and represent 4.18% of shares outstanding.