RB Global Inc. (NYSE: RBA) stock jumped 0.53% on Thursday to $65.10 against a previous-day closing price of $64.76. With 4.43 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.62 million shares. During the session, the Specialty Business Services company that operates in wider Industrials sector, reached to the highest price of $65.79 whereas the lowest price it dropped to was $64.60. The 52-week range on RBA shows that it touched its highest point at $66.99 and its lowest point at $47.72 during that stretch. It currently has a 1-year price target of $71.29. With its current market cap of 11.71 billion, RBA has annualized dividend of $1.08 while the current yield stands at 1.66%. Beta for the stock currently stands at 0.92.
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 -0.63%, but this was up by 14.65% over a month. Three-month performance surged to 14.41% while six-month performance rose 25.78%. The stock lost -0.09% in the past year, while it has gained 14.92% so far this year. A look at the trailing 12-month EPS for RBA yields 0.93 with Next year EPS estimates of 2.94. For the next quarter, that number is 0.50. This implies an EPS growth rate of 109.60% for this year and 18.48% 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, 181.86 million RBA shares are outstanding with a float of 180.10 million shares on hand for trading. On Aug 30, 2023, short shares totaled 7.08 million, which was 3.89% higher than short shares on Jul 30, 2023. In addition to Mr. James F. Kessler as the firm’s CEO & Director, Mr. Baron Concors serves as its Chief Product & Technology Officer.
Through their ownership of 91.21% of RBA’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 51.23% of RBA, in contrast to 44.28% held by mutual funds. Shares owned by individuals account for 0.23%. As the largest shareholder in RBA with 8.84% of the stake, Independent Franchise Partners LL holds 16,078,138 shares worth 16,078,138. A second-largest stockholder of RBA, Massachusetts Financial Services, holds 9,342,943 shares, controlling over 5.14% of the firm’s shares. Edgepoint Investment Group, Inc. is the third largest shareholder in RBA, holding 7,528,109 shares or 4.14% stake. With a 1.77% stake in RBA, the MFS International Growth Fund is the largest stakeholder. A total of 3,222,236 shares are owned by the mutual fund manager. The John Hancock III – Disciplined Va, which owns about 1.41% of RBA stock, is the second-largest Mutual Fund holder. It holds 2,558,694 shares valued at 164.98 million. Vanguard Extended Market Index Fu holds 1.39% of the stake in RBA, owning 2,530,138 shares worth 163.14 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 Jun 29, 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.
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 $76.00 and a low target of $64.00, the average target price over the next 12 months is $72.33. Based on these targets, RBA could surge 16.74% to reach the target high and fall by -1.69% to reach the target low. Reaching the average price target will result in a growth of 11.11% 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.