Rimini Street Inc. (NASDAQ: RMNI) stock fell -1.20% on Tuesday to $4.13 against a previous-day closing price of $4.18. With 0.58 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.41 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $4.2100 whereas the lowest price it dropped to was $3.9900. The 52-week range on RMNI shows that it touched its highest point at $7.25 and its lowest point at $3.99 during that stretch. It currently has a 1-year price target of $8.50. Beta for the stock currently stands at 0.88.
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 RMNI was up-trending over the past week, with a rise of 0.73%, but this was down by -24.50% over a month. Three-month performance dropped to -21.33% while six-month performance fell -26.12%. The stock lost -39.18% in the past year, while it has lost -30.82% so far this year. A look at the trailing 12-month EPS for RMNI yields 0.66 with Next year EPS estimates of 0.47. For the next quarter, that number is 0.11. This implies an EPS growth rate of 337.70% for this year and 27.25% for next year. EPS is expected to grow by 15.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 20.50%.
Float and Shares Shorts:
At present, 87.97 million RMNI shares are outstanding with a float of 52.09 million shares on hand for trading. On Oct 13, 2022, short shares totaled 2.31 million, which was 2.64% higher than short shares on Sep 14, 2022. In addition to Mr. Seth A. Ravin as the firm’s Founder, Chairman & CEO, Mr. Michael L. Perica serves as its Exec. VP, CFO & Principal Accounting Officer.
Through their ownership of 71.67% of RMNI’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 52.95% of RMNI, in contrast to 29.30% held by mutual funds. Shares owned by individuals account for 16.41%. As the largest shareholder in RMNI with 5.62% of the stake, Conifer Management LLC holds 4,919,848 shares worth 4,919,848. A second-largest stockholder of RMNI, Diamond Hill Capital Management, holds 4,235,217 shares, controlling over 4.84% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in RMNI, holding 3,365,728 shares or 3.84% stake. With a 1.93% stake in RMNI, the Diamond Hill Small Cap Fund is the largest stakeholder. A total of 1,691,796 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 1.69% of RMNI stock, is the second-largest Mutual Fund holder. It holds 1,477,020 shares valued at 8.29 million. Diamond Hill All Cap Select Fund holds 1.50% of the stake in RMNI, owning 1,310,895 shares worth 7.35 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RMNI since 4 analysts follow the stock currently. There are 3 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 RMNI analysts setting a high price target of $13.00 and a low target of $6.00, the average target price over the next 12 months is $8.50. Based on these targets, RMNI could surge 214.77% to reach the target high and rise by 45.28% to reach the target low. Reaching the average price target will result in a growth of 105.81% 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. RMNI will report FY 2022 earnings on 03/16/2023. For RMNI, this leads to a yearly average estimate of $0.26. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Rimini Street Inc. surprised analysts by -$0.02 when it reported $0.10 EPS against a consensus estimate of $0.12. The surprise factor in the prior quarter was -$0.04. Based on analyst estimates, the high estimate for the next quarter is $0.10 and the low estimate is -$0.03. The average estimate for the next quarter is thus $0.06.
Summary of Insider Activity:
Insiders traded RMNI stock several times over the past three months with 2 Buys and 2 Sells. In these transactions, 45,303 shares were bought while 25,338 shares were sold. The number of buy transactions has increased to 48 while that of sell transactions has risen to 45 over the past year. The total number of shares bought during that period was 1,184,026 while 1,817,519 shares were sold.