Stocks of Reed’s Inc. (REED) are poised to climb above their peers

Reed’s Inc. (NASDAQ: REED) stock jumped 30.01% on Friday to $0.20 against a previous-day closing price of $0.16. With 1.9 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.56 million shares. During the session, the Beverages – Non-Alcoholic company that operates in wider Consumer Defensive sector, reached to the highest price of $0.2300 whereas the lowest price it dropped to was $0.1514. The 52-week range on REED shows that it touched its highest point at $0.81 and its lowest point at $0.14 during that stretch. It currently has a 1-year price target of $0.93. Beta for the stock currently stands at 1.41.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of REED was up-trending over the past week, with a rise of 34.36%, but this was up by 31.35% over a month. Three-month performance dropped to -15.68% while six-month performance fell -32.93%. The stock lost -74.06% in the past year, while it has lost -42.88% so far this year. A look at the trailing 12-month EPS for REED yields -0.18 with Next year EPS estimates of -0.09. For the next quarter, that number is -0.04. This implies an EPS growth rate of -7.10% for this year and 46.20% for next year. EPS is expected to grow by 20.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 13.30%.

Float and Shares Shorts:

At present, 97.38 million REED shares are outstanding with a float of 86.83 million shares on hand for trading. On Apr 28, 2022, short shares totaled 0.21 million, which was 0.18% higher than short shares on Mar 30, 2022. In addition to Mr. Norman E. Snyder Jr. as the firm’s CEO & Director, Mr. Thomas J. Spisak serves as its CFO & Sec.

Institutional Ownership:

Through their ownership of 35.65% of REED’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 4.27% of REED, in contrast to 28.41% held by mutual funds. Shares owned by individuals account for 18.76%. As the largest shareholder in REED with 15.99% of the stake, Union Square Park Capital Managem holds 18,012,117 shares worth 18,012,117. A second-largest stockholder of REED, FiveT Capital AG, holds 4,650,000 shares, controlling over 4.13% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in REED, holding 3,533,374 shares or 3.14% stake. With a 2.13% stake in REED, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 2,402,268 shares are owned by the mutual fund manager. The Vanguard Extended Market Index Fu, which owns about 0.99% of REED stock, is the second-largest Mutual Fund holder. It holds 1,113,652 shares valued at 0.17 million. Jacob Discovery Fund holds 0.43% of the stake in REED, owning 480,000 shares worth 74880.0.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for REED since 2 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With REED analysts setting a high price target of $1.10 and a low target of $0.75, the average target price over the next 12 months is $0.93. Based on these targets, REED could surge 450.0% to reach the target high and rise by 275.0% to reach the target low. Reaching the average price target will result in a growth of 365.0% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. REED will report FY 2022 earnings on 03/30/2023. Analysts have provided yearly estimates in a range of -$0.12 being high and -$0.12 being low. For REED, this leads to a yearly average estimate of -$0.12. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Reed’s Inc. surprised analysts by -$0.01 when it reported -$0.05 EPS against a consensus estimate of -$0.04. The surprise factor in the prior quarter was -$0.01. Based on analyst estimates, the high estimate for the next quarter is -$0.03 and the low estimate is -$0.03. The average estimate for the next quarter is thus -$0.03.

Summary of Insider Activity:

Insiders traded REED stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 10 while that of sell transactions has remained unmoved to 0 over the past year. The total number of shares bought during that period was 1,015,008 while 0 shares were sold.

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