Stocks of Lordstown Motors Corp. (RIDE) are poised to climb above their peers

Lordstown Motors Corp. (NASDAQ: RIDE) stock jumped 11.11% on Friday to $1.30 against a previous-day closing price of $1.17. With 5.08 million shares changed hands, the volume of the stock remained lighter than its average volume of 5.9 million shares. During the session, the Auto Manufacturers company that operates in wider Consumer Cyclical sector, reached to the highest price of $1.3000 whereas the lowest price it dropped to was $1.1600. The 52-week range on RIDE shows that it touched its highest point at $3.79 and its lowest point at $0.87 during that stretch. It currently has a 1-year price target of $3.44. Beta for the stock currently stands at 1.25.

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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 RIDE was up-trending over the past week, with a rise of 18.18%, but this was up by 10.17% over a month. Three-month performance dropped to -23.98% while six-month performance fell -42.22%. The stock lost -54.86% in the past year, while it has gained 14.04% so far this year. A look at the trailing 12-month EPS for RIDE yields -1.29 with Next year EPS estimates of -1.40. For the next quarter, that number is -0.28. This implies an EPS growth rate of -77.00% for this year and -17.60% for next year.

Float and Shares Shorts:

At present, 211.95 million RIDE shares are outstanding with a float of 179.13 million shares on hand for trading. On Oct 13, 2022, short shares totaled 40.11 million, which was 18.65% higher than short shares on Sep 14, 2022. In addition to Mr. Daniel A. Ninivaggi as the firm’s Exec. Chairman, Mr. Adam B. Kroll serves as its Exec. VP, CFO & Principal Accounting Officer.

Institutional Ownership:

Through their ownership of 30.90% of RIDE’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 16.04% of RIDE, in contrast to 13.83% held by mutual funds. Shares owned by individuals account for 11.64%. As the largest shareholder in RIDE with 4.66% of the stake, BlackRock Fund Advisors holds 10,120,044 shares worth 10,120,044. A second-largest stockholder of RIDE, Invesco Capital Management LLC, holds 9,334,575 shares, controlling over 4.30% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in RIDE, holding 8,041,846 shares or 3.71% stake. With a 4.15% stake in RIDE, the Invesco WilderHill Clean Energy E is the largest stakeholder. A total of 8,999,322 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.20% of RIDE stock, is the second-largest Mutual Fund holder. It holds 4,776,543 shares valued at 5.45 million. iShares Russell 2000 ETF holds 1.74% of the stake in RIDE, owning 3,771,441 shares worth 4.3 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RIDE since 4 analysts follow the stock currently. There are 0 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 2 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 RIDE analysts setting a high price target of $2.00 and a low target of $0.75, the average target price over the next 12 months is $1.25. Based on these targets, RIDE could surge 53.85% to reach the target high and fall by -42.31% to reach the target low. Reaching the average price target will result in a decline of -3.85% 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. RIDE will report FY 2022 earnings on 02/26/2024. Analysts have provided yearly estimates in a range of -$1.10 being high and -$1.67 being low. For RIDE, this leads to a yearly average estimate of -$1.31. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Lordstown Motors Corp. surprised analysts by $0.16 when it reported -$0.16 EPS against a consensus estimate of -$0.31. The surprise factor in the prior quarter was $0.76. Based on analyst estimates, the high estimate for the next quarter is -$0.26 and the low estimate is -$0.41. The average estimate for the next quarter is thus -$0.32.

Summary of Insider Activity:

Insiders traded RIDE stock several times over the past three months with 2 Buys and 7 Sells. In these transactions, 249,999 shares were bought while 8,780,542 shares were sold. The number of buy transactions has increased to 22 while that of sell transactions has risen to 12 over the past year. The total number of shares bought during that period was 818,175 while 16,740,386 shares were sold.

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