Prepare Yourself for Liftoff: ReShape Lifesciences Inc. (RSLS)

ReShape Lifesciences Inc. (NASDAQ: RSLS) stock jumped 7.67% on Friday to $0.48 against a previous-day closing price of $0.45. With 1.56 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.4 million shares. During the session, the Medical Devices company that operates in wider Healthcare sector, reached to the highest price of $0.5170 whereas the lowest price it dropped to was $0.4501. The 52-week range on RSLS shows that it touched its highest point at $4.04 and its lowest point at $0.44 during that stretch. It currently has a 1-year price target of $3.08. Beta for the stock currently stands at -0.36.

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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 RSLS was down-trending over the past week, with a drop of -4.34%, but this was down by -14.49% over a month. Three-month performance dropped to -27.69% while six-month performance fell -59.29%. The stock lost -85.75% in the past year, while it has lost -70.46% so far this year. A look at the trailing 12-month EPS for RSLS yields -4.38 with Next year EPS estimates of -1.15. For the next quarter, that number is -0.36. This implies an EPS growth rate of -4.60% for this year and 18.30% for next year.

Float and Shares Shorts:

At present, 18.92 million RSLS shares are outstanding with a float of 16.41 million shares on hand for trading. On Jul 14, 2022, short shares totaled 0.21 million, which was 1.11% higher than short shares on Jun 14, 2022. In addition to Mr. Thomas Stankovich as the firm’s Sr. VP of Fin., CFO, Interim CEO & Interim Pres, Dr. Mark B. Knudson Ph.D. serves as its Co-Founder and Special Advisor to the CEO.

Institutional Ownership:

Through their ownership of 18.40% of RSLS’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 4.93% of RSLS, in contrast to 11.69% held by mutual funds. Shares owned by individuals account for 1.67%. As the largest shareholder in RSLS with 2.67% of the stake, The Vanguard Group, Inc. holds 499,359 shares worth 499,359. A second-largest stockholder of RSLS, Geode Capital Management LLC, holds 280,629 shares, controlling over 1.50% of the firm’s shares. T. Rowe Price Associates, Inc. is the third largest shareholder in RSLS, holding 170,900 shares or 0.91% stake. With a 2.20% stake in RSLS, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 411,000 shares are owned by the mutual fund manager. The Fidelity Comwlth. Tr. – Nasdaq Co, which owns about 0.96% of RSLS stock, is the second-largest Mutual Fund holder. It holds 179,359 shares valued at 0.1 million. Vanguard Extended Market Index Fu holds 0.47% of the stake in RSLS, owning 88,359 shares worth 50983.0.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RSLS 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 RSLS analysts setting a high price target of $4.65 and a low target of $1.50, the average target price over the next 12 months is $3.08. Based on these targets, RSLS could surge 868.75% to reach the target high and rise by 212.5% to reach the target low. Reaching the average price target will result in a growth of 541.67% 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. RSLS will report FY 2022 earnings on 03/28/2023. Analysts have provided yearly estimates in a range of -$1.31 being high and -$1.42 being low. For RSLS, this leads to a yearly average estimate of -$1.36. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. ReShape Lifesciences Inc. surprised analysts by -$0.04 when it reported -$0.38 EPS against a consensus estimate of -$0.34. The surprise factor in the prior quarter was -$1.55. Based on analyst estimates, the high estimate for the next quarter is -$0.34 and the low estimate is -$0.38. The average estimate for the next quarter is thus -$0.36.

Summary of Insider Activity:

Insiders traded RSLS stock several times over the past three months with 8 Buys and 4 Sells. In these transactions, 20,000 shares were bought while 27,381 shares were sold. The number of buy transactions has increased to 11 while that of sell transactions has risen to 23 over the past year. The total number of shares bought during that period was 70,000 while 686,594 shares were sold.

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