This Could Be A Brutal Week For Renewable Energy Group Inc. (REGI), Kaleyra Inc. (KLR)

Renewable Energy Group Inc. (NASDAQ: REGI) shares are 43.30% up in the year-to-date (YTD) period and have moved 15.52% or $5.19 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +140.62% lower. Comparatively, the stock is -5.35% down YTD and 32.99% over the trailing 3-month period. If we look at the shorter duration, its week performance is 1.40% and 35.84% over the month.

Analyst Recommendations

On September 01, 2020, Credit Suisse recommended the REGI stock is a Outperform, while earlier, Truist had Initiated the stock as a Buy on September 01, 2020. 7 analysts offering the recommendations for the stock have a consensus rating of 2.00 to suggest that the REGI stock is a “Moderate Buy. 0 of the 7 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 6 recommend buying, with 1 rating it as an Overweight.

The stock currently trades at $38.62 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $49.40. The forecasts give the Renewable Energy Group Inc. stock a price target range of $70.00 on the higher side while at least one analyst think the stock could plunge to a low of $33.00. The two limits represent an upside potential of 44.83% or -17.03%.

Earnings Forecast

Analysts estimate the earnings to increase 107.40% in the current quarter to $0.69, up from the -$0.41 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $3.31, down -20.40% from $8.78 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between $0.36 and $1.24. Wall Street estimates earnings per share to be at an average of $5.61 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 27 over the last 12 months, while SEC filings reveal that there have been 24 insider sales over the same period. Insiders have purchases 231,457 shares while those sold by company executives and officers stand at 157,567. The last 3 months have seen insiders trade a total of 14,595 and 14,595 in purchases and sales respectively.

Stroburg Jeffrey, a Director at the company, sold 25,000 shares worth $0.73 million at $29.14 per share on May 28. The VP, Sales and Marketing had earlier sold another 6,968 REGI shares valued at $0.22 million on Jun 09. The shares were sold at $31.99 per share. Scharf Michael M (Director) sold 10,000 shares at $25.17 per share on May 11 for a total of $0.25 million while WARNER CYNTHIA J, (President and CEO) bought 3,000 shares on Mar 19 for $50640.0 with each share fetching $16.88.

Kaleyra Inc. (AMEX:KLR), on the other hand, is trading around $7.30 with a market cap of $206.52M and analyst research firms have a positive stance on its shares. Some analysts are even forecasting -$1.02 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

KLR’s operating expenses over the recent quarter were at $12.72 million. This represented a 59.24% of the company’s total revenues which amounted $31.2 million. With this in place, we can see that the company’s diluted EPS declined -$0.39 on the year-over-year period, shrinking to -$0.12 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 $114.12 million from $111.44 million over the previous quarter. Short term investments amounted to $4.8 million while total current assets were at $83.14 million. The cash flow from operating activities totaled -$4.42 million, significantly lower than the -$1.47 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$6.29 million.

Insider activity

Insiders have transacted a total of 4 times at Kaleyra Inc. over the last 6 months, with insider purchases undertaken 4 times and accounting for 7,218,125 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 4.0 shares. Insiders now hold a total of 31.72M shares after the latest sales, with 5.40% net shares purchased.

Major holders

Insiders own 22.60% of the company shares, while shares held by institutions stand at 33.50% with a share float percentage of 6.42M. Investors are also buoyed by the number of investors in a company, with Kaleyra Inc. having a total of 14 institutions that hold shares in the company. The top two institutional holders are Nomura Holdings Inc. with over 1.63 million shares worth more than $6.57 million. As of Jun 29, 2020, Nomura Holdings Inc. held 5.71% of shares outstanding.

The other major institutional holder is Cowen and Company, LLC, with the investment firm holding over 0.83 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $3.36 million and represent 2.92% of shares outstanding.