Check out these key findings about Rent the Runway Inc. (RENT)

Rent the Runway Inc. (NASDAQ: RENT) stock jumped 6.35% on Monday to $4.02 against a previous-day closing price of $3.78. With 0.88 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.76 million shares. During the session, the Apparel Retail company that operates in wider Consumer Cyclical sector, reached to the highest price of $4.0350 whereas the lowest price it dropped to was $3.7800. The 52-week range on RENT shows that it touched its highest point at $7.49 and its lowest point at $1.10 during that stretch. It currently has a 1-year price target of $5.85.

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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 RENT was up-trending over the past week, with a rise of 1.52%, but this was up by 42.55% over a month. Three-month performance surged to 124.58% while six-month performance fell -4.51%. The stock lost -19.76% in the past year, while it has gained 31.80% so far this year. A look at the trailing 12-month EPS for RENT yields -2.38 with Next year EPS estimates of -1.84. For the next quarter, that number is -0.51. This implies an EPS growth rate of -23.50% for this year and 18.90% for next year.

Float and Shares Shorts:

At present, 64.52 million RENT shares are outstanding with a float of 58.22 million shares on hand for trading. On Oct 13, 2022, short shares totaled 5.84 million, which was 9.02% higher than short shares on Sep 14, 2022. In addition to Ms. Jennifer Y. Hyman as the firm’s Co-Founder, Chairman & CEO, Ms. Anushka Salinas serves as its Pres & COO.

Institutional Ownership:

Through their ownership of 81.62% of RENT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 34.42% of RENT, in contrast to 28.45% held by mutual funds. Shares owned by individuals account for 15.60%. As the largest shareholder in RENT with 5.80% of the stake, Divisar Capital Management LLC holds 3,575,782 shares worth 3,575,782. A second-largest stockholder of RENT, Ares Management LLC, holds 3,387,678 shares, controlling over 5.50% of the firm’s shares. T. Rowe Price Associates, Inc. is the third largest shareholder in RENT, holding 2,837,648 shares or 4.60% stake. With a 2.98% stake in RENT, the Franklin Small Cap Growth Fund is the largest stakeholder. A total of 1,834,058 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.62% of RENT stock, is the second-largest Mutual Fund holder. It holds 1,617,196 shares valued at 4.93 million. iShares Russell 2000 ETF holds 1.71% of the stake in RENT, owning 1,052,081 shares worth 3.21 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RENT since 12 analysts follow the stock currently. There are 6 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 2 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 RENT analysts setting a high price target of $10.00 and a low target of $3.00, the average target price over the next 12 months is $5.85. Based on these targets, RENT could surge 148.76% to reach the target high and fall by -25.37% to reach the target low. Reaching the average price target will result in a growth of 45.52% 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. RENT will report FY 2023 earnings on 04/12/2023. Analysts have provided yearly estimates in a range of -$2.24 being high and -$2.29 being low. For RENT, this leads to a yearly average estimate of -$2.26. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Rent the Runway Inc. surprised analysts by -$0.00 when it reported -$0.56 EPS against a consensus estimate of -$0.56. The surprise factor in the prior quarter was $0.12. Based on analyst estimates, the high estimate for the next quarter is -$0.48 and the low estimate is -$0.54. The average estimate for the next quarter is thus -$0.50.

Summary of Insider Activity:

Insiders traded RENT stock several times over the past three months with 1 Buys and 6 Sells. In these transactions, 9,386 shares were bought while 30,441 shares were sold. The number of buy transactions has increased to 23 while that of sell transactions has risen to 30 over the past year. The total number of shares bought during that period was 2,200,035 while 553,893 shares were sold.

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