These 2 Stocks Seize Spotlight: RingCentral Inc. (RNG), Arrowhead Pharmaceuticals Inc. (ARWR)

RingCentral Inc. (NYSE: RNG) shares are 83.91% up in the year-to-date (YTD) period and have moved 6.68% or $19.43 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +130.03% lower. Comparatively, the stock is -2.40% down YTD and 14.49% over the trailing 3-month period. If we look at the shorter duration, its week performance is 9.21% and 1.59% over the month.

Analyst Recommendations

On June 01, 2020, KeyBanc Capital Markets recommended the RNG stock is a Overweight, while earlier, Wolfe Research had Initiated the stock as a Outperform on July 24, 2020. 26 analysts offering the recommendations for the stock have a consensus rating of 1.60 to suggest that the RNG stock is a “Strong Buy. 0 of the 26 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 23 recommend buying, with 1 rating it as an Overweight.

The stock currently trades at $310.20 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $341.54. The forecasts give the RingCentral Inc. stock a price target range of $375.00 on the higher side while at least one analyst think the stock could plunge to a low of $280.00. The two limits represent an upside potential of 17.28% or -10.79%.

Earnings Forecast

Analysts estimate the earnings to increase 20.00% in the current quarter to $0.24, up from the $0.22 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $0.93, up 26.30% from $0.82 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between $0.25 and $0.28. Wall Street estimates earnings per share to be at an average of $1.14 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 88 over the last 12 months, while SEC filings reveal that there have been 583 insider sales over the same period. Insiders have purchases 707,171 shares while those sold by company executives and officers stand at 707,953. The last 3 months have seen insiders trade a total of 53,497 and 142,632 in purchases and sales respectively.

Marlow John H, a SVP, CAO & General Counsel at the company, sold 3,911 shares worth $1.13 million at $287.91 per share on Aug 27. The President & COO had earlier sold another 2,033 RNG shares valued at $0.59 million on Aug 27. The shares were sold at $287.95 per share. Shmunis Vladimir (CEO & Chairman) sold 10,000 shares at $283.34 per share on Aug 24 for a total of $2.83 million while Agarwal Vaibhav, (Chief Accounting Officer) sold 572 shares on Aug 21 for $0.17 million with each share fetching $290.76.

Arrowhead Pharmaceuticals Inc. (NASDAQ:ARWR), on the other hand, is trading around $39.00 with a market cap of $3.98B and analyst research firms have a negative stance on its shares. Analysts predict that the stock will reach $64.27 and spell out a more modest performance – a 39.32% return. Some analysts are even forecasting -$0.48 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

ARWR’s operating margin was negative on the trailing 12 months basis, remaining steady at -27.00%, while the operating expenses over the recent quarter were at -$15.95 million. This represented a 158.25% of the company’s total revenues which amounted $27.38 million. With this in place, we can see that the company’s diluted EPS declined -$0.13 on the year-over-year period, growing to $0.21 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 $555.73 million from $561.08 million over the previous quarter. Short term investments amounted to $67.71 million while total current assets were at $315.23 million. The cash flow from operating activities totaled -$84.54 million, significantly lower than the $159.22 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$94.61 million.

Insider activity

Insiders have transacted a total of 45 times at Arrowhead Pharmaceuticals Inc. over the last 6 months, with insider purchases undertaken 22 times and accounting for 150,153 shares. Insider sales totaled 267,028 shares over the same period, with these deals completed in 23 transactions. Looking at these numbers, we realize that net purchases over that period are -1.0 shares. Insiders now hold a total of 2.83M shares after the latest sales, with -3.80% net shares purchased.

Major holders

Insiders own 3.70% of the company shares, while shares held by institutions stand at 67.70% with a share float percentage of 99.56M. Investors are also buoyed by the number of investors in a company, with Arrowhead Pharmaceuticals Inc. having a total of 374 institutions that hold shares in the company.