There is no way Ritchie Bros. Auctioneers Incorporated (RBA) can keep these numbers up

Ritchie Bros. Auctioneers Incorporated (NYSE: RBA) stock fell -3.22% on Thursday to $54.46 against a previous-day closing price of $56.27. With 1.52 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.97 million shares. During the session, the Specialty Business Services company that operates in wider Industrials sector, reached to the highest price of $56.24 whereas the lowest price it dropped to was $54.40. The 52-week range on RBA shows that it touched its highest point at $71.24 and its lowest point at $47.72 during that stretch. It currently has a 1-year price target of $66.71. With its current market cap of 9.60 billion, RBA has annualized dividend of $1.08 while the current yield stands at 1.98%. Beta for the stock currently stands at 0.90.

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 up-trending over the past week, with a rise of 0.39%, but this was down by -2.38% over a month. Three-month performance dropped to -8.13% while six-month performance rose 2.05%. The stock lost -6.21% in the past year, while it has lost -3.86% so far this year. A look at the trailing 12-month EPS for RBA yields 0.98 with Next year EPS estimates of 2.83. For the next quarter, that number is 0.66. This implies an EPS growth rate of 109.60% for this year and 20.64% 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 32.70%.

Float and Shares Shorts:

At present, 120.49 million RBA shares are outstanding with a float of 110.78 million shares on hand for trading. On May 14, 2023, short shares totaled 6.39 million, which was 3.51% higher than short shares on Apr 13, 2023. In addition to Ms. Ann M. Fandozzi as the firm’s CEO & Director, Mr. James F. Kessler serves as its Pres & COO.

Institutional Ownership:

Other institutions hold 53.80% of RBA, in contrast to 38.28% held by mutual funds. Shares owned by individuals account for 0.65%. As the largest shareholder in RBA with 8.19% of the stake, Independent Franchise Partners LL holds 14,851,085 shares worth 14,851,085. A second-largest stockholder of RBA, Massachusetts Financial Services, holds 7,965,275 shares, controlling over 4.39% of the firm’s shares. Edgepoint Investment Group, Inc. is the third largest shareholder in RBA, holding 6,191,978 shares or 3.41% stake.

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 Mar 30, 2023, RBA reported revenue of $484.55M and operating income of $94.76M. The EBITDA in the recently reported quarter was $125.83M and diluted EPS was $0.48.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RBA 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 RBA analysts setting a high price target of $74.00 and a low target of $60.00, the average target price over the next 12 months is $66.50. Based on these targets, RBA could surge 35.88% to reach the target high and rise by 10.17% to reach the target low. Reaching the average price target will result in a growth of 22.11% 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.