Reed’s Inc. (REED) can make a big difference with a little luck

With 1.12 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.12 million shares. During the session, the Beverages – Non-Alcoholic company that operates in wider Consumer Defensive sector, reached to the highest price of $0.0886 whereas the lowest price it dropped to was $0.0750. The 52-week range on REED shows that it touched its highest point at $0.43 and its lowest point at $0.06 during that stretch. Beta for the stock currently stands at 1.62.

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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 REED was down-trending over the past week, with a drop of -7.18%, but this was down by -0.24% over a month. Three-month performance dropped to -38.10% while six-month performance fell -45.53%. The stock lost -75.63% in the past year, while it has gained 20.34% so far this year. A look at the trailing 12-month EPS for REED yields -0.18 with Next year EPS estimates of -0.08. For the next quarter, that number is -0.02. This implies an EPS growth rate of -7.10% for this year and 46.70% for next year. EPS is expected to grow by 20.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 13.30%.

Float and Shares Shorts:

At present, 112.72 million REED shares are outstanding with a float of 109.03 million shares on hand for trading. On Oct 13, 2022, short shares totaled 0.9 million, which was 0.80% higher than short shares on Sep 14, 2022. In addition to Mr. Norman E. Snyder Jr. as the firm’s CEO & Director, Mr. Thomas J. Spisak serves as its CFO & Sec.


Institutional Ownership:

Through their ownership of 35.01% of REED’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 34.87% of REED, in contrast to 3.28% held by mutual funds. Shares owned by individuals account for 18.30%. As the largest shareholder in REED with 15.23% of the stake, Union Square Park Capital Managem holds 18,012,117 shares worth 18,012,117. A second-largest stockholder of REED, Whitebox Advisors LLC, holds 12,410,519 shares, controlling over 10.50% of the firm’s shares. FiveT Capital AG is the third largest shareholder in REED, holding 4,650,000 shares or 3.93% stake. With a 1.78% stake in REED, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 2,105,891 shares are owned by the mutual fund manager. The Vanguard Extended Market Index Fu, which owns about 0.94% of REED stock, is the second-largest Mutual Fund holder. It holds 1,115,347 shares valued at 78074.0. Fidelity Extended Market Index Fu holds 0.35% of the stake in REED, owning 409,405 shares worth 28658.0.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for REED since 1 analysts follow the stock currently. There are 0 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 REED analysts setting a high price target of $1.10 and a low target of $0.75, the average target price over the next 12 months is $0.93. Based on these targets, REED could surge 1275.0% to reach the target high and rise by 837.5% to reach the target low. Reaching the average price target will result in a growth of 1062.5% 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. REED will report FY 2022 earnings on 02/13/2024. Analysts have provided yearly estimates in a range of -$0.13 being high and -$0.13 being low. For REED, this leads to a yearly average estimate of -$0.13. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Reed’s Inc. surprised analysts by -$0.01 when it reported -$0.03 EPS against a consensus estimate of -$0.02. The surprise factor in the prior quarter was -$0.02. Based on analyst estimates, the high estimate for the next quarter is -$0.02 and the low estimate is -$0.02. The average estimate for the next quarter is thus -$0.02.

Summary of Insider Activity:

Insiders traded REED stock several times over the past three months with 2 Buys and 0 Sells. In these transactions, 500,000 shares were bought while 0 shares were sold. The number of buy transactions has increased to 9 while that of sell transactions has remained unmoved to 0 over the past year. The total number of shares bought during that period was 1,254,180 while 0 shares were sold.

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