Volatility Returns To Intellia Therapeutics Inc. (NTLA), Avaya Holdings Corp. (AVYA)

Intellia Therapeutics Inc. (NASDAQ: NTLA) shares are 44.65% up in the year-to-date (YTD) period and have moved -1.67% or -$0.36 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +131.15% lower. Comparatively, the stock is -16.98% down YTD and -4.97% over the trailing 3-month period. If we look at the shorter duration, its week performance is 1.92% and 10.23% over the month.

Analyst Recommendations

On February 14, 2020, Wedbush recommended the NTLA stock is a Neutral, while earlier, Oppenheimer had Upgrade the stock as a Outperform on February 28, 2020. 11 analysts offering the recommendations for the stock have a consensus rating of 2.10 to suggest that the NTLA stock is a “Moderate Buy. 0 of the 11 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 5 recommend buying, with 2 rating it as an Overweight.

The stock currently trades at $21.22 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $30.15. The forecasts give the Intellia Therapeutics Inc. stock a price target range of $37.00 on the higher side while at least one analyst think the stock could plunge to a low of $16.00. The two limits represent an upside potential of 42.65% or -32.62%.

Earnings Forecast

Analysts estimate the earnings to increase 11.60% in the current quarter to -$0.59, down from the -$0.49 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$2.46, up 37.00% from -$2.11 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.95 and -$0.26. Wall Street estimates earnings per share to be at an average of -$3.04 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 7 over the last 12 months, while SEC filings reveal that there have been 7 insider sales over the same period. Insiders have purchases 55,000 shares while those sold by company executives and officers stand at 37,460. The last 3 months have seen insiders trade a total of 45,000 and 31,845 in purchases and sales respectively.

LEONARD JOHN M., a President and CEO at the company, sold 5,000 shares worth $0.11 million at $21.83 per share on Aug 06. The EVP, General Counsel had earlier sold another 5,615 NTLA shares valued at $0.12 million on Aug 18. The shares were sold at $21.00 per share. Rivera Jose E (EVP, General Counsel) sold 5,615 shares at $22.70 per share on Jul 15 for a total of $0.13 million while LEONARD JOHN M., (President and CEO) sold 5,000 shares on Jul 01 for $0.11 million with each share fetching $21.83.

Avaya Holdings Corp. (NYSE:AVYA), on the other hand, is trading around $16.36 with a market cap of $1.32B and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $19.43 and spell out a more modest performance – a 15.8% return. Some analysts are even forecasting $3.56 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Avaya Holdings Corp. (AVYA) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

AVYA’s operating margin was negative on the trailing 12 months basis, remaining steady at -17.10%, while the operating expenses over the recent quarter were at $344.0 million. This represented a 52.29% of the company’s total revenues which amounted $721.0 million. With this in place, we can see that the company’s diluted EPS inclined $0.08 on the year-over-year period, shrinking to -$5.70 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 $6.27 billion from $6.21 billion over the previous quarter. The cash flow from operating activities totaled $77.0 million, significantly lower than the $175.0 million reported in the year-ago quarter. The company’s free cash flow for the quarter was $5.0 million.

Insider activity

Insiders have transacted a total of 35 times at Avaya Holdings Corp. over the last 6 months, with insider purchases undertaken 19 times and accounting for 476,915 shares. Insider sales totaled 175,303 shares over the same period, with these deals completed in 16 transactions. Looking at these numbers, we realize that net purchases over that period are 3.0 shares. Insiders now hold a total of 1.25M shares after the latest sales, with 61.70% net shares purchased.

Major holders

Insiders own 2.10% of the company shares with a share float percentage of 81.48M. Investors are also buoyed by the number of investors in a company, with Avaya Holdings Corp. having a total of 279 institutions that hold shares in the company. The top two institutional holders are JP Morgan Chase & Company with over 9.11 million shares worth more than $112.58 million. As of Jun 29, 2020, JP Morgan Chase & Company held 8.23% of shares outstanding.

The other major institutional holder is Vanguard Group, Inc. (The), with the investment firm holding over 8.86 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $109.52 million and represent 8.00% of shares outstanding.