Transportadora de Gas del Sur S.A. (TGS) Vs. Minerva Neurosciences Inc. (NERV): Updated Outlook

Transportadora de Gas del Sur S.A. (NYSE: TGS) shares are -33.47% down in the year-to-date (YTD) period and have moved 1.49% or $0.07 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +28.23% lower. Comparatively, the stock is -34.25% down YTD and -17.04% over the trailing 3-month period. If we look at the shorter duration, its week performance is 5.07% and -24.53% over the month.

Analyst Recommendations

On August 13, 2019, Morgan Stanley recommended the TGS stock is a Underweight, while earlier, Morgan Stanley had Upgrade the stock as a Equal-Weight on April 06, 2020. 4 analysts offering the recommendations for the stock have a consensus rating of 3.50 to suggest that the TGS stock is a “Hold. 2 of the 4 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 1 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $4.77 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $7.56. The forecasts give the Transportadora de Gas del Sur S.A. stock a price target range of $13.96 on the higher side while at least one analyst think the stock could plunge to a low of $6.00. The two limits represent an upside potential of 65.83% or 20.5%.

Earnings Forecast

Analysts estimate the earnings to increase 2.90% in the current quarter to $0.17, down from the $0.57 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $0.54, down -31.50% from $1.71 reported last year. Wall Street estimates earnings per share to be at an average of $0.36 for the next year.

Minerva Neurosciences Inc. (NASDAQ:NERV), on the other hand, is trading around $3.05 with a market cap of $124.87M and analyst research firms have a negative stance on its shares. Some analysts are even forecasting -$0.01 per share in earnings this year on a short term (1 year) basis.

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

Company balance sheet and cash flow

NERV’s operating expenses over the recent quarter were at $29.51 million. This represented a 28.34% of the company’s total revenues which amounted $41.18 million. With this in place, we can see that the company’s diluted EPS inclined $0.73 on the year-over-year period, shrinking to -$0.32 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 $66.17 million from $68.78 million over the previous quarter. Short term investments amounted to $3.0 million while total current assets were at $35.89 million. The company’s free cash flow for the quarter was -$16.79 million.

Insider activity

Insiders have transacted a total of 1 times at Minerva Neurosciences Inc. over the last 6 months, with insider purchases undertaken 0 times and accounting for 0 shares. Insider sales totaled 8,339 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 -1.0 shares. Insiders now hold a total of 1.57M shares after the latest sales, with -0.50% net shares purchased.

Major holders

Insiders own 3.81% of the company shares, while shares held by institutions stand at 67.80% with a share float percentage of 35.76M. Investors are also buoyed by the number of investors in a company, with Minerva Neurosciences Inc. having a total of 122 institutions that hold shares in the company. The top two institutional holders are Federated Hermes, Inc. with over 9.61 million shares worth more than $34.69 million. As of Jun 29, 2020, Federated Hermes, Inc. held 23.32% of shares outstanding.

The other major institutional holder is Vanguard Group, Inc. (The), with the investment firm holding over 3.19 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $11.51 million and represent 7.74% of shares outstanding.