R1 RCM Inc. (NASDAQ: RCM) stock jumped 3.49% on Monday to $16.02 against a previous-day closing price of $15.48. With 2.4 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.56 million shares. During the session, the Health Information Services company that operates in wider Healthcare sector, reached to the highest price of $16.20 whereas the lowest price it dropped to was $15.29. The 52-week range on RCM shows that it touched its highest point at $22.06 and its lowest point at $6.71 during that stretch. It currently has a 1-year price target of $21.47. Beta for the stock currently stands at 0.85.
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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 RCM was down-trending over the past week, with a drop of -5.93%, but this was down by -0.74% over a month. Three-month performance dropped to -7.29% while six-month performance rose 21.55%. The stock lost -26.34% in the past year, while it has gained 46.30% so far this year. A look at the trailing 12-month EPS for RCM yields -0.16 with Next year EPS estimates of 0.27. For the next quarter, that number is 0.02. This implies an EPS growth rate of 91.20% for this year and 355.93% for next year. EPS is expected to decline by -2.50% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 15.30%.
Float and Shares Shorts:
At present, 418.53 million RCM shares are outstanding with a float of 210.75 million shares on hand for trading. On Aug 30, 2023, short shares totaled 15.14 million, which was 3.61% higher than short shares on Jul 30, 2023. In addition to Mr. Lee Rivas as the firm’s CEO & Director, Mr. John M. Sparby serves as its Pres.
Institutional Ownership:
Other institutions hold 34.10% of RCM, in contrast to 21.19% held by mutual funds. Shares owned by individuals account for 17.87%. As the largest shareholder in RCM with 4.01% of the stake, The Vanguard Group, Inc. holds 16,782,889 shares worth 16,782,889. A second-largest stockholder of RCM, BlackRock Fund Advisors, holds 11,510,639 shares, controlling over 2.75% of the firm’s shares. Citadel Advisors LLC is the third largest shareholder in RCM, holding 8,290,272 shares or 1.98% stake. With a 1.41% stake in RCM, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 5,912,021 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 1.17% of RCM stock, is the second-largest Mutual Fund holder. It holds 4,903,422 shares valued at 84.53 million. iShares Core S&P Mid Cap ETF holds 1.07% of the stake in RCM, owning 4,461,830 shares worth 76.92 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, RCM reported revenue of $391.90M and operating income of $50.90M. The EBITDA in the recently reported quarter was $74.30M and diluted EPS was -$0.07.
Analysts Ratings:
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RCM 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 RCM analysts setting a high price target of $26.00 and a low target of $18.00, the average target price over the next 12 months is $21.47. Based on these targets, RCM could surge 62.3% to reach the target high and rise by 12.36% to reach the target low. Reaching the average price target will result in a growth of 34.02% 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 RCM stock several times over the past three months with 2 Buys and 1 Sells. In these transactions, 59,061 shares were bought while 50,000 shares were sold. The number of buy transactions has increased to 30 while that of sell transactions has risen to 7 over the past year. The total number of shares bought during that period was 1,632,080 while 526,078 shares were sold.
