Ritchie Bros. Auctioneers Incorporated (NYSE: RBA) stock fell -4.47% on Tuesday to $58.74 against a previous-day closing price of $61.49. With 4.43 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.41 million shares. During the session, the Specialty Business Services company that operates in wider Industrials sector, reached to the highest price of $61.41 whereas the lowest price it dropped to was $58.66. The 52-week range on RBA shows that it touched its highest point at $72.73 and its lowest point at $48.65 during that stretch. It currently has a 1-year price target of $63.50. With its current market cap of 6.46 billion, RBA has annualized dividend of $1.08 while the current yield stands at 1.84%. Beta for the stock currently stands at 0.91.
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 RBA was down-trending over the past week, with a drop of -1.82%, but this was up by 5.34% over a month. Three-month performance dropped to -6.82% while six-month performance fell -15.09%. The stock lost -3.53% in the past year, while it has gained 1.57% so far this year. A look at the trailing 12-month EPS for RBA yields 2.73 with Next year EPS estimates of 2.57. For the next quarter, that number is 0.56. This implies an EPS growth rate of -15.40% for this year and 11.39% for next year. EPS is expected to grow by 7.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 9.80%.
Float and Shares Shorts:
At present, 110.84 million RBA shares are outstanding with a float of 110.78 million shares on hand for trading. On Oct 13, 2022, short shares totaled 1.46 million, which was 1.32% higher than short shares on Sep 14, 2022. In addition to Ms. Ann M. Fandozzi as the firm’s CEO & Director, Mr. James F. Kessler serves as its Pres & COO.
Through their ownership of 89.57% of RBA’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 45.16% of RBA, in contrast to 41.35% held by mutual funds. Shares owned by individuals account for 0.56%. As the largest shareholder in RBA with 6.54% of the stake, Massachusetts Financial Services holds 7,247,832 shares worth 7,247,832. A second-largest stockholder of RBA, Beutel, Goodman & Co. Ltd., holds 5,767,291 shares, controlling over 5.20% of the firm’s shares. Fidelity Investments Canada ULC is the third largest shareholder in RBA, holding 4,367,124 shares or 3.94% stake. With a 2.70% stake in RBA, the Janus Henderson Enterprise Fund is the largest stakeholder. A total of 2,988,678 shares are owned by the mutual fund manager. The MFS International Growth Fund, which owns about 2.29% of RBA stock, is the second-largest Mutual Fund holder. It holds 2,535,585 shares valued at 146.63 million. Beutel Goodman Canadian Equity Fu holds 1.86% of the stake in RBA, owning 2,064,960 shares worth 119.42 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RBA since 9 analysts follow the stock currently. There are 3 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With RBA analysts setting a high price target of $72.00 and a low target of $55.00, the average target price over the next 12 months is $64.64. Based on these targets, RBA could surge 22.57% to reach the target high and fall by -6.37% to reach the target low. Reaching the average price target will result in a growth of 10.04% 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. RBA will report FY 2022 earnings on 02/16/2024. Analysts have provided yearly estimates in a range of $2.34 being high and $2.12 being low. For RBA, this leads to a yearly average estimate of $2.27. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Ritchie Bros. Auctioneers Incorporated surprised analysts by $0.14 when it reported $0.53 EPS against a consensus estimate of $0.39. The surprise factor in the prior quarter was $0.11. Based on analyst estimates, the high estimate for the next quarter is $0.61 and the low estimate is $0.48. The average estimate for the next quarter is thus $0.55.
Summary of Insider Activity:
Insiders traded RBA stock several times over the past three months with 5 Buys and 0 Sells. In these transactions, 2,067 shares were bought while 0 shares were sold. The number of buy transactions has increased to 28 while that of sell transactions has risen to 9 over the past year. The total number of shares bought during that period was 116,802 while 25,761 shares were sold.