Wall Street analysts’ outlook for Romeo Power Inc. (RMO)

Romeo Power Inc. (NYSE: RMO) stock jumped 26.93% on Friday to $0.70 against a previous-day closing price of $0.55. With 46.77 million shares changed hands, the volume of the stock remained heavier than its average volume of 6.64 million shares. During the session, the Auto Parts company that operates in wider Consumer Cyclical sector, reached to the highest price of $0.7170 whereas the lowest price it dropped to was $0.6515. The 52-week range on RMO shows that it touched its highest point at $7.44 and its lowest point at $0.44 during that stretch. It currently has a 1-year price target of $1.80.

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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 RMO was up-trending over the past week, with a rise of 40.77%, but this was up by 55.58% over a month. Three-month performance dropped to -36.54% while six-month performance fell -62.87%. The stock lost -90.10% in the past year, while it has lost -80.87% so far this year. A look at the trailing 12-month EPS for RMO yields -1.21 with Next year EPS estimates of -0.77. For the next quarter, that number is -0.30. This implies an EPS growth rate of 175.60% for this year and 23.80% for next year.

Float and Shares Shorts:

At present, 135.26 million RMO shares are outstanding with a float of 125.22 million shares on hand for trading. On Apr 28, 2022, short shares totaled 30.35 million, which was 20.07% higher than short shares on Mar 30, 2022. In addition to Ms. Susan Seilheimer Brennan as the firm’s Pres, CEO & Director, Dr. Abdul Kader El Srouji Ph.D. serves as its Chief Technology Officer.

Institutional Ownership:

Through their ownership of 33.66% of RMO’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 30.00% of RMO, in contrast to 23.46% held by mutual funds. Shares owned by individuals account for 11.10%. As the largest shareholder in RMO with 7.26% of the stake, Invesco Capital Management LLC holds 10,981,488 shares worth 10,981,488. A second-largest stockholder of RMO, Renaissance Technologies LLC, holds 6,523,600 shares, controlling over 4.31% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in RMO, holding 6,220,120 shares or 4.11% stake. With a 2.72% stake in RMO, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 4,109,562 shares are owned by the mutual fund manager. The Global X Autonomous & Electric Ve, which owns about 2.58% of RMO stock, is the second-largest Mutual Fund holder. It holds 3,905,360 shares valued at 1.75 million. Vanguard Extended Market Index Fu holds 0.83% of the stake in RMO, owning 1,260,601 shares worth 0.57 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RMO since 1 analysts follow the stock currently. There are 0 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 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 RMO analysts setting a high price target of $1.80 and a low target of $1.80, the average target price over the next 12 months is $1.80. Based on these targets, RMO could surge 157.14% to reach the target high and rise by 157.14% to reach the target low. Reaching the average price target will result in a growth of 157.14% 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. RMO will report FY 2022 earnings on 03/28/2023. Analysts have provided yearly estimates in a range of -$1.01 being high and -$1.01 being low. For RMO, this leads to a yearly average estimate of -$1.01. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Romeo Power Inc. surprised analysts by -$0.35 when it reported -$0.60 EPS against a consensus estimate of -$0.24. The surprise factor in the prior quarter was $0.00. Based on analyst estimates, the high estimate for the next quarter is -$0.20 and the low estimate is -$0.20. The average estimate for the next quarter is thus -$0.20.

Summary of Insider Activity:

Insiders traded RMO stock several times over the past three months with 6 Buys and 0 Sells. In these transactions, 518,961 shares were bought while 0 shares were sold. The number of buy transactions has increased to 12 while that of sell transactions has risen to 10 over the past year. The total number of shares bought during that period was 611,541 while 7,437,948 shares were sold.

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