Rent the Runway Inc. (NASDAQ: RENT) stock fell -5.58% on Wednesday to $2.37 against a previous-day closing price of $2.51. With 0.52 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.67 million shares. During the session, the Apparel Retail company that operates in wider Consumer Cyclical sector, reached to the highest price of $2.5500 whereas the lowest price it dropped to was $2.3200. The 52-week range on RENT shows that it touched its highest point at $5.74 and its lowest point at $1.10 during that stretch. It currently has a 1-year price target of $6.06.
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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 RENT was up-trending over the past week, with a rise of 2.60%, but this was down by -14.13% over a month. Three-month performance dropped to -33.43% while six-month performance rose 91.13%. The stock lost -35.95% in the past year, while it has lost -22.30% so far this year. A look at the trailing 12-month EPS for RENT yields -2.16 with Next year EPS estimates of -1.49. For the next quarter, that number is -0.45. This implies an EPS growth rate of 35.80% for this year and 14.90% for next year.
Float and Shares Shorts:
At present, 64.97 million RENT shares are outstanding with a float of 58.22 million shares on hand for trading. On May 14, 2023, short shares totaled 6.7 million, which was 10.07% higher than short shares on Apr 13, 2023. In addition to Ms. Jennifer Y. Hyman as the firm’s Co-Founder, Chairman & CEO, Ms. Anushka Salinas serves as its Pres & COO.
Institutional Ownership:
Through their ownership of 74.08% of RENT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 35.28% of RENT, in contrast to 32.58% held by mutual funds. Shares owned by individuals account for 16.93%. As the largest shareholder in RENT with 7.24% of the stake, Divisar Capital Management LLC holds 4,591,779 shares worth 4,591,779. A second-largest stockholder of RENT, T. Rowe Price Investment Manageme, holds 4,312,736 shares, controlling over 6.80% of the firm’s shares. Ares Management LLC is the third largest shareholder in RENT, holding 3,387,678 shares or 5.34% stake. With a 4.70% stake in RENT, the T Rowe Price Small Cap Value Fund is the largest stakeholder. A total of 2,977,165 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.55% of RENT stock, is the second-largest Mutual Fund holder. It holds 1,617,196 shares valued at 4.22 million. Franklin Small Cap Growth Fund holds 1.86% of the stake in RENT, owning 1,176,558 shares worth 3.07 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jan 30, 2023, RENT reported revenue of $67.10M and operating income of -$33.20M. The EBITDA in the recently reported quarter was -$7.30M and diluted EPS was -$0.67.
Analysts Ratings:
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RENT since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With RENT analysts setting a high price target of $8.00 and a low target of $3.50, the average target price over the next 12 months is $5.69. Based on these targets, RENT could surge 237.55% to reach the target high and rise by 47.68% to reach the target low. Reaching the average price target will result in a growth of 140.08% 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.
Summary of Insider Activity:
Insiders traded RENT stock several times over the past three months with 10 Buys and 31 Sells. In these transactions, 3,457,721 shares were bought while 483,370 shares were sold. The number of buy transactions has increased to 22 while that of sell transactions has risen to 50 over the past year. The total number of shares bought during that period was 3,902,291 while 569,266 shares were sold.
