A look into R1 RCM Inc. (RCM)’s deeper side

R1 RCM Inc. (NASDAQ: RCM) stock jumped 0.66% on Monday to $10.74 against a previous-day closing price of $10.67. With 1.68 million shares changed hands, the volume of the stock remained lighter than its average volume of 3.13 million shares. During the session, the Health Information Services company that operates in wider Healthcare sector, reached to the highest price of $10.88 whereas the lowest price it dropped to was $10.51. The 52-week range on RCM shows that it touched its highest point at $18.70 and its lowest point at $7.13 during that stretch. It currently has a 1-year price target of $18.09. Beta for the stock currently stands at 0.79.

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 up-trending over the past week, with a rise of 7.83%, but this was down by -8.21% over a month. Three-month performance dropped to -35.07% while six-month performance fell -36.49%. The stock gained 42.44% in the past year, while it has lost -1.92% so far this year. A look at the trailing 12-month EPS for RCM yields -0.08 with Next year EPS estimates of 0.42. For the next quarter, that number is 0.07. This implies an EPS growth rate of 240.55% for this year and 88.23% 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 26.26%.

Float and Shares Shorts:

At present, 416.60 million RCM shares are outstanding with a float of 192.23 million shares on hand for trading. On Oct 30, 2023, short shares totaled 27.96 million, which was 6.67% higher than short shares on Sep 28, 2023. In addition to Mr. Lee Rivas as the firm’s CEO & Director, Mr. John M. Sparby serves as its President.

Institutional Ownership:

Through their ownership of 89.64% of RCM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 34.10% of RCM, in contrast to 22.18% held by mutual funds. Shares owned by individuals account for 17.19%. As the largest shareholder in RCM with 4.22% of the stake, The Vanguard Group, Inc. holds 17,696,152 shares worth 17,696,152. A second-largest stockholder of RCM, BlackRock Fund Advisors, holds 15,149,248 shares, controlling over 3.62% of the firm’s shares. Citadel Advisors LLC is the third largest shareholder in RCM, holding 10,185,013 shares or 2.43% stake. With a 1.45% stake in RCM, the iShares Core S&P Mid Cap ETF is the largest stakeholder. A total of 6,080,990 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 1.42% of RCM stock, is the second-largest Mutual Fund holder. It holds 5,939,652 shares valued at 70.03 million. Vanguard Small Cap Index Fund holds 1.16% of the stake in RCM, owning 4,866,246 shares worth 57.37 million.

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 $14.00, the average target price over the next 12 months is $18.09. Based on these targets, RCM could surge 142.09% to reach the target high and rise by 30.35% to reach the target low. Reaching the average price target will result in a growth of 68.44% from current levels.

Summary of Insider Activity:

Insiders traded RCM stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 27 while that of sell transactions has risen to 7 over the past year. The total number of shares bought during that period was 1,575,438 while 526,078 shares were sold.