ATRenew (NYSE:RERE) Shares Gap Down - Time to Sell?

Key Points

• ATRenew shares fell sharply, opening at $4.20 versus a prior close of $4.59 and last trading near $4.08. The stock remains below its 200-day moving average of $4.70.
• Analyst sentiment is generally positive: ATRenew has a consensus “Moderate Buy” rating and a $5.50 target price, despite one “Hold” rating and a recent downgrade from “Strong Buy” to “Buy.”
• The company exceeded quarterly expectations, reporting $0.10 in earnings per share versus $0.09 expected and revenue of $972.82 million versus $930.34 million forecast. Institutional ownership stands at 19.29%, with several major investors increasing their stakes.

ATRenew Inc. Sponsored ADR (NYSE:RERE - Get Free Report) gapped down before the market opened on Thursday . The stock had previously closed at $4.59, but opened at $4.20. ATRenew shares last traded at $4.0750, with a volume of 1,228,606 shares.

Analysts Set New Price Targets

RERE has been the subject of several recent research reports. CICC Research began coverage on ATRenew in a research note on Thursday. They issued an "outperform" rating for the company. UBS Group started coverage on ATRenew in a report on Tuesday, July 21st. They set a "buy" rating and a $5.50 target price for the company. Weiss Ratings reissued a "hold (c)" rating on shares of ATRenew in a research report on Wednesday, July 29th. Finally, Wall Street Zen downgraded shares of ATRenew from a "strong-buy" rating to a "buy" rating in a research note on Saturday, July 25th. Two equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat, ATRenew has a consensus rating of "Moderate Buy" and a consensus target price of $5.50.

ATRenew Stock Performance

The company has a market capitalization of $921.48 million, a price-to-earnings ratio of 16.80 and a beta of 0.31. The firm has a fifty day moving average price of $4.09 and a 200-day moving average price of $4.70.

ATRenew (NYSE:RERE - Get Free Report) last posted its quarterly earnings data on Friday, August 14th. The company reported $0.10 earnings per share for the quarter, topping the consensus estimate of $0.09 by $0.01. ATRenew had a net margin of 1.90% and a return on equity of 11.48%. The business had revenue of $972.82 million during the quarter, compared to analysts' expectations of $930.34 million. On average, sell-side analysts forecast that ATRenew Inc. Sponsored ADR will post 0.4 EPS for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Wellington Management Group LLP bought a new stake in ATRenew during the fourth quarter worth $23,190,000. Price T Rowe Associates Inc. MD raised its holdings in shares of ATRenew by 60.3% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 3,857,684 shares of the company's stock worth $20,447,000 after buying an additional 1,450,764 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its holdings in shares of ATRenew by 98.8% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 2,950,152 shares of the company's stock worth $13,571,000 after buying an additional 1,466,383 shares in the last quarter. Fideuram Asset Management Ireland dac bought a new stake in shares of ATRenew during the 4th quarter worth $4,764,000. Finally, JPMorgan Chase & Co. lifted its position in shares of ATRenew by 117.2% during the 4th quarter. JPMorgan Chase & Co. now owns 808,934 shares of the company's stock worth $4,287,000 after buying an additional 436,577 shares during the last quarter. 19.29% of the stock is owned by institutional investors.

About ATRenew

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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