This Could Be A Brutal Week For SciPlay Corporation (SCPL), Revolve Group Inc. (RVLV)

SciPlay Corporation (NASDAQ: SCPL) shares are 8.62% up in the year-to-date (YTD) period and have moved 1.25% or $0.16 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +129.38% lower. Comparatively, the stock is -22.52% down YTD and -5.45% over the trailing 3-month period. If we look at the shorter duration, its week performance is -0.07% and -13.82% over the month.

Analyst Recommendations

On April 22, 2020, BofA/Merrill recommended the SCPL stock is a Neutral, while earlier, RBC Capital Mkts had Downgrade the stock as a Sector Perform on June 10, 2020. 12 analysts offering the recommendations for the stock have a consensus rating of 2.20 to suggest that the SCPL stock is a “Moderate Buy. 1 of the 12 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 8 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $13.35 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $17.71. The forecasts give the SciPlay Corporation stock a price target range of $22.50 on the higher side while at least one analyst think the stock could plunge to a low of $12.30. The two limits represent an upside potential of 40.67% or -8.54%.

Earnings Forecast

Analysts estimate the earnings to increase 8.00% in the current quarter to $0.24, up from the $0.2 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $0.93, up 20.70% from $0.74 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between $0.18 and $0.26. Wall Street estimates earnings per share to be at an average of $0.97 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 10 over the last 12 months, while SEC filings reveal that there have been 5 insider sales over the same period. Insiders have purchases 74,969 shares while those sold by company executives and officers stand at 1,116,504. The last 3 months have seen insiders trade a total of 0 and 416,504 in purchases and sales respectively.

Park West Asset Management LLC, a 10% Owner at the company, sold 15,054 shares worth $0.23 million at $15.25 per share on Jun 09. The 10% Owner had earlier sold another 400,000 SCPL shares valued at $5.56 million on Jun 17. The shares were sold at $13.90 per share. Park West Asset Management LLC (10% Owner) sold 1,450 shares at $15.25 per share on Jun 08 for a total of $22113.0 while Park West Asset Management LLC, (10% Owner) sold 584,400 shares on Jun 01 for $8.13 million with each share fetching $13.92.

Revolve Group Inc. (NYSE:RVLV), on the other hand, is trading around $21.46 with a market cap of $1.47B and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $24.67 and spell out a more modest performance – a 13.01% return. Some analysts are even forecasting $0.51 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

RVLV’s operating margin was positive on the trailing 12 months basis, remaining steady at 7.80%, while the operating expenses over the recent quarter were at $53.98 million. This represented a 62.19% of the company’s total revenues which amounted $142.78 million. With this in place, we can see that the company’s diluted EPS inclined $0.20 on the year-over-year period, shrinking to -$0.57 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 $272.23 million from $259.49 million over the previous quarter. The cash flow from operating activities totaled $61.89 million, significantly higher than the $22.68 million reported in the year-ago quarter. The company’s free cash flow for the quarter was $60.51 million.

Insider activity

Insiders have transacted a total of 9 times at Revolve Group Inc. over the last 6 months, with insider purchases undertaken 8 times and accounting for 341,395 shares. Insider sales totaled 132,653 shares over the same period, with these deals completed in 1 transactions. Looking at these numbers, we realize that net purchases over that period are 7.0 shares. Insiders now hold a total of 878.48k shares after the latest sales, with 31.20% net shares purchased.

Major holders

Insiders own 1.30% of the company shares, while shares held by institutions stand at 76.80% with a share float percentage of 15.72M. Investors are also buoyed by the number of investors in a company, with Revolve Group Inc. having a total of 121 institutions that hold shares in the company. The top two institutional holders are Vanguard Group, Inc. (The) with over 1.4 million shares worth more than $20.83 million. As of Jun 29, 2020, Vanguard Group, Inc. (The) held 8.80% of shares outstanding.

The other major institutional holder is Penserra Capital Management LLC, with the investment firm holding over 1.13 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $16.82 million and represent 7.11% of shares outstanding.