It is Poised to be a Bull Market for Rockley Photonics Holdings Limited (RKLY)

Rockley Photonics Holdings Limited (NYSE: RKLY) stock jumped 3.55% on Monday to $0.19 against a previous-day closing price of $0.19. With 0.84 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.67 million shares. During the session, the Semiconductors company that operates in wider Technology sector, reached to the highest price of $0.1986 whereas the lowest price it dropped to was $0.1831. The 52-week range on RKLY shows that it touched its highest point at $5.14 and its lowest point at $0.14 during that stretch. It currently has a 1-year price target of $1.50. Beta for the stock currently stands at 0.76.

Will You Miss Out On This Growth Stock Boom?

A new megatrend in the fintech market is well underway. Mobile payments are projected to boom into a massive $12 trillion market by 2028. According to Motley Fool this growth stock could "deliver huge returns." Not only in the immediate future but also over the next decade. Especially since the man behind this company is a serial entrepreneur who has been wildly successful over the years.

And this is just one of our 5 Best Growth Stocks To Own For 2023.


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 RKLY was down-trending over the past week, with a drop of -7.28%, but this was up by 16.89% over a month. Three-month performance dropped to -63.11% while six-month performance fell -90.66%. The stock lost -93.85% in the past year, while it has gained 37.33% so far this year. A look at the trailing 12-month EPS for RKLY yields -1.29 with Next year EPS estimates of -0.54. For the next quarter, that number is -0.19. This implies an EPS growth rate of -161.80% for this year and 53.40% for next year.

Float and Shares Shorts:

At present, 130.75 million RKLY shares are outstanding with a float of 101.11 million shares on hand for trading. On Oct 13, 2022, short shares totaled 8.42 million, which was 6.37% higher than short shares on Sep 14, 2022. In addition to Dr. Andrew G. Rickman O.B.E., OBE, Ph.D. as the firm’s Founder, CEO & Chairman, Mr. Richard A. Meier serves as its CFO & Pres.

Institutional Ownership:

Through their ownership of 21.15% of RKLY’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 5.94% of RKLY, in contrast to 13.77% held by mutual funds. Shares owned by individuals account for 11.07%. As the largest shareholder in RKLY with 3.95% of the stake, BlackRock Fund Advisors holds 5,246,597 shares worth 5,246,597. A second-largest stockholder of RKLY, SSgA Funds Management, Inc., holds 2,005,106 shares, controlling over 1.51% of the firm’s shares. Banque Lombard Odier & Cie SA is the third largest shareholder in RKLY, holding 1,739,131 shares or 1.31% stake. With a 1.57% stake in RKLY, the iShares Russell 2000 ETF is the largest stakeholder. A total of 2,084,427 shares are owned by the mutual fund manager. The Vanguard Extended Market Index Fu, which owns about 0.94% of RKLY stock, is the second-largest Mutual Fund holder. It holds 1,249,033 shares valued at 0.17 million. iShares Russell 2000 Growth ETF holds 0.62% of the stake in RKLY, owning 826,719 shares worth 0.12 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RKLY since 3 analysts follow the stock currently. There are 2 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 RKLY analysts setting a high price target of $2.00 and a low target of $1.00, the average target price over the next 12 months is $1.50. Based on these targets, RKLY could surge 952.63% to reach the target high and rise by 426.32% to reach the target low. Reaching the average price target will result in a growth of 689.47% 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. RKLY will report FY 2022 earnings on 03/06/2024. Analysts have provided yearly estimates in a range of -$1.06 being high and -$1.20 being low. For RKLY, this leads to a yearly average estimate of -$1.13. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Rockley Photonics Holdings Limited surprised analysts by $0.40 when it reported $0.14 EPS against a consensus estimate of -$0.26. The surprise factor in the prior quarter was -$0.57. Based on analyst estimates, the high estimate for the next quarter is -$0.17 and the low estimate is -$0.24. The average estimate for the next quarter is thus -$0.19.

Summary of Insider Activity:

Insiders traded RKLY stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 17 while that of sell transactions has risen to 8 over the past year. The total number of shares bought during that period was 825,296 while 49,156 shares were sold.

Leave a Comment

Your email address will not be published. Required fields are marked *