It makes sense and dollars to buy ReNew Energy Global Plc (RNW) stock

ReNew Energy Global Plc (NASDAQ: RNW) stock fell -3.03% on Tuesday to $6.09 against a previous-day closing price of $6.28. With 0.61 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.01 million shares. During the session, the Utilities – Renewable company that operates in wider Utilities sector, reached to the highest price of $6.30 whereas the lowest price it dropped to was $6.08. The 52-week range on RNW shows that it touched its highest point at $8.97 and its lowest point at $5.02 during that stretch. It currently has a 1-year price target of $10.87.

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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 RNW was down-trending over the past week, with a drop of -3.33%, but this was up by 12.78% over a month. Three-month performance surged to 15.34% while six-month performance fell -5.14%. The stock gained 7.79% in the past year, while it has gained 10.73% so far this year. A look at the trailing 12-month EPS for RNW yields -0.47 with Next year EPS estimates of 0.17. For the next quarter, that number is -0.08. This implies an EPS growth rate of -142.40% for this year and 366.70% for next year.

Float and Shares Shorts:

At present, 392.26 million RNW shares are outstanding with a float of 93.08 million shares on hand for trading. On Oct 13, 2022, short shares totaled 3.35 million, which was 0.84% higher than short shares on Sep 14, 2022. In addition to Mr. Sumant Sinha as the firm’s Founder, Chairman & CEO, Mr. Kedar Upadhye CS, MBA serves as its Group Chief Financial Officer.

Institutional Ownership:

Through their ownership of 82.81% of RNW’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 37.60% of RNW, in contrast to 15.54% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in RNW with 27.08% of the stake, Canada Pension Plan Investment Bo holds 76,501,166 shares worth 76,501,166. A second-largest stockholder of RNW, TT International Asset Management, holds 10,224,074 shares, controlling over 3.62% of the firm’s shares. Zimmer Partners LP is the third largest shareholder in RNW, holding 10,135,543 shares or 3.59% stake. With a 22.97% stake in RNW, the Canada Pension Plan is the largest stakeholder. A total of 64,868,000 shares are owned by the mutual fund manager. The BNP Paribas Funds – Energy Transi, which owns about 3.54% of RNW stock, is the second-largest Mutual Fund holder. It holds 10,000,000 shares valued at 55.0 million. Swedbank Robur Transition Energy holds 0.95% of the stake in RNW, owning 2,680,600 shares worth 14.74 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RNW since 6 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 believe that the stock is worth HOLDING, 1 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 RNW analysts setting a high price target of $14.00 and a low target of $7.00, the average target price over the next 12 months is $9.68. Based on these targets, RNW could surge 129.89% to reach the target high and rise by 14.94% to reach the target low. Reaching the average price target will result in a growth of 58.95% 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. RNW will report FY 2023 earnings on 06/14/2023. Analysts have provided yearly estimates in a range of $0.04 being high and -$0.22 being low. For RNW, this leads to a yearly average estimate of -$0.07. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. ReNew Energy Global Plc surprised analysts by -$0.11 when it reported -$0.03 EPS against a consensus estimate of $0.08. The surprise factor in the prior quarter was -$0.06. Based on analyst estimates, the high estimate for the next quarter is -$0.06 and the low estimate is -$0.11. The average estimate for the next quarter is thus -$0.08.

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