Lens on 3 US mid-cap stocks – MicroStrategy, Herbalife Nutrition, National Beverage

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Lens on 3 US mid-cap stocks – MicroStrategy, Herbalife Nutrition, National Beverage

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 Lens on 3 US mid-cap stocks – MicroStrategy, Herbalife Nutrition, National Beverage

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Summary

  • Mid-cap stocks possess features of both small cap and large cap stocks and hence are considered useful in portfolio diversification.
  • MicroStrategy shares have grown massively, surging ~587% in last year. The Company recently declared its Q4 results which reflected its improved efficiency and profitability.
  • In collaboration with LA Galaxy, Herbalife Nutrition Ltd declared the release of immersive ARIA 360 AR fan experience. Herbalife’s shares have grown by 39% in the last 12 months.
  • National Beverage declared a one-for-one stock split. The Company’s results in Q2 were quite impressive.

Mid-cap stocks have features of both small-cap stocks and large-cap stocks. They are expected to grow in terms of market share and productivity while keeping the risk level moderate.

As mid-cap stocks provide a balance between growth and stability, they are considered beneficial in portfolio diversification. Mid-cap players have a market capitalization in the US$2 billion – US$10 billion range.

In this article, we would look at three US-based mid cap stocks and their recent developments.

MicroStrategy Incorporated (NASDAQ:MSTR)

On 28 January 2021, MicroStrategy Incorporated, the largest independent publicly-traded business intelligence company, announced its Q4 FY2020 results (period ended 31 December 2020).

Source: © Bakhtiarzein | Megapixl.com

Q4 Highlights

  • Total revenues stood at US$131.3 million, down 1.7% as compared to the previous corresponding period (pcp). Product licenses and subscription services revenues improved by 3.3% on pcp while product support revenues dropped by 3.8%. Other services revenues declined by 2.8%.
  • Gross profit during the period was US$110.5 million.
  • Operating expenses improved by 11%. In Q3, the Company’s operating expenses included impairment losses in its digital asset.
  • Income from operations dropped from US$9.6 million Q4 2019) to US$0.4 million.
  • Net income for the quarter was US$2.7 million, compared to US$12.2 million in Q4 2019.
  • The net cash & cash equivalent stood at US$59.7 million, a drastic decline of US$506 million compared to Q4 2019.

Important Developments

  • The Company purchased ~32,220 bitcoins at an aggregate purchase price of US$700 million.
  • In December 2020, MSTR issued US$650 million aggregate principal amount of Notes. These notes are MSTR’s senior unsecured obligations and have an interest of 0.75% per year (fixed rate).

Stock Information:

In the last year, MSTR shares have grown significantly from US$151.45 on 10 February 2020 to US$1041 on 08 February 2021, representing a growth of ~587%. On 08 February 2020, the shares settled at US$1041, up 29.16% from the previous close. MSTR has a market cap of ~US$9.98 billion.        

Herbalife Nutrition Ltd (NYSE:HLF)

On 26 January 2021, the leading global nutrition firm Herbalife Nutrition Ltd, in collaboration with LA Galaxy, announced the release of immersive ARIA 360 AR fan experience, a first for an MLS sports team.

The fans can now gain access to the Herbalife Nutrition "LA Galaxy Experience" via the Company’s website using their smart mobile phone. Once the fans visit the website, they will have unique access to special areas of the stadium, comprising the players' lounge, team locker rooms, and Champions Lounge. The fans would be able to watch the players take the field and take part in an "Average Joe's vs. Pro's" interactive match.

Q4 and FY2020 results

On 20 January 2020, Herbalife announced that it would declare its Q4 FY2020 and FY2020 results on 17 February 2020.

Stock Information:

In the last 12 months, HLF shares have grown from US$40.06 on 10 February 2020 to US$55.83 on 08 February 2021, representing a growth of ~39.37%. On 08 February 2020, HLF shares settled at US$55.83, up 3.68% from the previous close. The Company has a market cap of ~US$6.79 billion.

National Beverage Corp (NASDAQ:FIZZ)

On 05 February 2021, the Board of National Beverage Corp declared a one-for-one stock split in the form of a stock dividend. The dividend would be distributed on 19 February to stockholders of record on 16 February. The stocks would start trading on a split-adjusted basis on 22 February.

Source: © Bakhtiarzein | Megapixl.com

The Company would announce Q3 FY2021 results (period ended 30 January 2021) by 11 March 2021.

A Glance at Q2 FY2021 Results

  • Net sales improved by 8% to US$272 million compared to Q2 FY2020.
  • Gross margin was up by 16.4% to US$108 million on pcp.
  • Operating profit improved from 16.6% in Q2 FY2020 to 22.7% in Q2 FY2021.
  • Net income surged significantly up by 44% to US$47.2 million.

Stock Information:

In the last one year, FIZZ shares have grown from US$42.69 on 10 February 2020 to US$114.47 on 08 February 2021, representing a growth of ~168.14%. On 08 February 2020, the shares settled at US$114.47, up 4.68% from the previous close. FIZZ has a market cap of ~US$5.34 billion.

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