Stocks of Red Robin Gourmet Burgers Inc. (RRGB) are poised to climb above their peers

Red Robin Gourmet Burgers Inc. (NASDAQ: RRGB) stock jumped 8.31% on Friday to $9.77 against a previous-day closing price of $9.02. With 0.53 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.27 million shares. During the session, the Restaurants company that operates in wider Consumer Cyclical sector, reached to the highest price of $10.07 whereas the lowest price it dropped to was $8.88. The 52-week range on RRGB shows that it touched its highest point at $18.64 and its lowest point at $5.35 during that stretch. It currently has a 1-year price target of $7.50. Beta for the stock currently stands at 2.70.

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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 RRGB was up-trending over the past week, with a rise of 8.92%, but this was up by 55.82% over a month. Three-month performance surged to 26.72% while six-month performance rose 3.06%. The stock lost -34.69% in the past year, while it has gained 75.09% so far this year. A look at the trailing 12-month EPS for RRGB yields -3.48 with Next year EPS estimates of -1.65. For the next quarter, that number is -0.62. This implies an EPS growth rate of 83.40% for this year and 34.80% for next year. EPS is expected to grow by 10.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -41.50%.

Float and Shares Shorts:

At present, 15.89 million RRGB shares are outstanding with a float of 15.18 million shares on hand for trading. On Oct 13, 2022, short shares totaled 1.47 million, which was 9.24% higher than short shares on Sep 14, 2022. In addition to Mr. Gerard J. Hart as the firm’s CEO, Director & Pres, Ms. Lynn S. Schweinfurth serves as its Exec. VP & CFO.

Institutional Ownership:

Through their ownership of 80.65% of RRGB’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 48.68% of RRGB, in contrast to 33.47% held by mutual funds. Shares owned by individuals account for 30.99%. As the largest shareholder in RRGB with 12.06% of the stake, American Century Investment Manag holds 1,921,481 shares worth 1,921,481. A second-largest stockholder of RRGB, T. Rowe Price Investment Manageme, holds 1,122,856 shares, controlling over 7.05% of the firm’s shares. Soviero Asset Management LP is the third largest shareholder in RRGB, holding 1,080,000 shares or 6.78% stake. With a 9.63% stake in RRGB, the American Century Small Cap Value is the largest stakeholder. A total of 1,533,309 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 3.69% of RRGB stock, is the second-largest Mutual Fund holder. It holds 587,483 shares valued at 3.28 million. T Rowe Price Small Cap Stock Fund holds 3.00% of the stake in RRGB, owning 477,251 shares worth 2.66 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RRGB since 3 analysts follow the stock currently. There are 0 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 3 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 RRGB analysts setting a high price target of $7.50 and a low target of $7.50, the average target price over the next 12 months is $7.50. Based on these targets, RRGB could drop -23.23% to reach the target high and fall by -23.23% to reach the target low. Reaching the average price target will result in a decline of -23.23% 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. RRGB will report FY 2022 earnings on 03/08/2024. Analysts have provided yearly estimates in a range of -$2.45 being high and -$2.59 being low. For RRGB, this leads to a yearly average estimate of -$2.53. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Red Robin Gourmet Burgers Inc. surprised analysts by $0.09 when it reported -$1.03 EPS against a consensus estimate of -$1.12. The surprise factor in the prior quarter was -$0.59. Based on analyst estimates, the high estimate for the next quarter is -$0.54 and the low estimate is -$0.68. The average estimate for the next quarter is thus -$0.62.

Summary of Insider Activity:

Insiders traded RRGB stock several times over the past three months with 6 Buys and 0 Sells. In these transactions, 87,820 shares were bought while 0 shares were sold. The number of buy transactions has increased to 25 while that of sell transactions has risen to 26 over the past year. The total number of shares bought during that period was 479,252 while 23,324 shares were sold.

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