ATRenew (NYSE:RERE) Shares Down 5.2% - Here's Why

Key Points

• ATRenew shares fell 5.2% in midday trading, with the stock trading as low as $3.86 after closing at $4.11 the prior day. Trading volume was well below average, suggesting limited participation in the selloff.
• Recent earnings were stronger than expected: the company reported $0.08 EPS versus the $0.07 estimate and revenue of $893.46 million, above forecasts. Analysts still expect ATRenew to earn about 0.4 per share for the year.
• Analyst sentiment remains cautious overall, with the consensus rating at Hold despite a recent upgrade from Wall Street Zen and a downgrade from Weiss Ratings. The stock also trades below both its 50-day and 200-day moving averages.

ATRenew Inc. Sponsored ADR (NYSE:RERE - Get Free Report)'s share price dropped 5.2% during mid-day trading on Friday . The company traded as low as $3.86 and last traded at $3.8950. Approximately 332,662 shares traded hands during trading, a decline of 71% from the average session volume of 1,164,747 shares. The stock had previously closed at $4.11.

Analysts Set New Price Targets

Several analysts recently commented on RERE shares. Wall Street Zen upgraded ATRenew from a "buy" rating to a "strong-buy" rating in a research report on Sunday, March 22nd. Weiss Ratings cut shares of ATRenew from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday, May 1st. One analyst has rated the stock with a Hold rating, Based on data from MarketBeat.com, the company has an average rating of "Hold".

ATRenew Trading Down 5.7%

The stock has a market cap of $850.17 million, a price-to-earnings ratio of 15.50 and a beta of 0.29. The company has a fifty day simple moving average of $4.24 and a 200-day simple moving average of $4.96.

ATRenew (NYSE:RERE - Get Free Report) last announced its earnings results on Friday, May 15th. The company reported $0.08 EPS for the quarter, topping the consensus estimate of $0.07 by $0.01. ATRenew had a net margin of 1.90% and a return on equity of 11.48%. The company had revenue of $893.46 million during the quarter, compared to analysts' expectations of $856.01 million. As a group, analysts anticipate that ATRenew Inc. Sponsored ADR will post 0.4 earnings per share for the current year.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of RERE. Lazard Asset Management LLC purchased a new stake in shares of ATRenew in the first quarter worth approximately $540,000. Renaissance Technologies LLC acquired a new stake in shares of ATRenew during the 1st quarter valued at $2,368,000. Caxton Associates LLP acquired a new stake in shares of ATRenew during the 1st quarter valued at $351,000. Precision Wealth Strategies LLC grew its holdings in shares of ATRenew by 17.7% during the 1st quarter. Precision Wealth Strategies LLC now owns 296,399 shares of the company's stock valued at $1,390,000 after acquiring an additional 44,659 shares in the last quarter. Finally, QRG Capital Management Inc. grew its holdings in shares of ATRenew by 90.5% during the 1st quarter. QRG Capital Management Inc. now owns 50,924 shares of the company's stock valued at $239,000 after acquiring an additional 24,192 shares in the last quarter. 19.29% of the stock is owned by institutional investors and hedge funds.

ATRenew Company Profile

ATRenew Inc, through its subsidiaries, operates pre-owned consumer electronics transactions and services platform in the People's Republic of China. It primarily sells mobile phones, laptops, tablets, drones, digital cameras; and vintage bags, watches, liquor, gold, and various household goods through its online platforms and offline stores, as well as provides services to third-party merchants to sell the products through its platforms. The company was formerly known as AiHuiShou International Co Ltd.

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