ATRenew (NYSE:RERE) Shares Gap Up - Time to Buy?

Key Points

• ATRenew's share price opened at $4.38, up from a previous close of $4.21, with a trading volume of 465,686 shares.
• Wall Street Zen downgraded ATRenew from a "strong-buy" to a "buy" rating, reflecting shifting analyst sentiment.
• The company reported $0.04 earnings per share for its last quarter, missing estimates, with revenue significantly lower than expected at $641.26 million.

ATRenew Inc. Sponsored ADR (NYSE:RERE - Get Free Report) shares gapped up before the market opened on Monday . The stock had previously closed at $4.21, but opened at $4.38. ATRenew shares last traded at $4.32, with a volume of 465,686 shares trading hands.

Analyst Upgrades and Downgrades

Separately, Wall Street Zen downgraded shares of ATRenew from a "strong-buy" rating to a "buy" rating in a research report on Sunday, August 10th.

ATRenew Price Performance

The stock has a market capitalization of $1.13 billion, a price-to-earnings ratio of 65.14 and a beta of 0.20. The stock's 50 day simple moving average is $3.49 and its 200-day simple moving average is $3.00.

ATRenew (NYSE:RERE - Get Free Report) last posted its earnings results on Tuesday, May 20th. The company reported $0.04 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.05 by ($0.01). ATRenew had a net margin of 0.73% and a return on equity of 8.91%. The business had revenue of $641.26 million during the quarter, compared to analyst estimates of $4.62 billion. As a group, equities research analysts anticipate that ATRenew Inc. Sponsored ADR will post 0.09 earnings per share for the current fiscal year.

ATRenew declared that its Board of Directors has approved a stock repurchase program on Monday, June 30th that permits the company to repurchase $0.00 in outstanding shares. This repurchase authorization permits the company to buy shares of its stock through open market purchases. Stock repurchase programs are often a sign that the company's board of directors believes its stock is undervalued.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of RERE. Price T Rowe Associates Inc. MD acquired a new position in ATRenew during the 4th quarter worth $6,623,000. Invesco Ltd. lifted its position in ATRenew by 1,718.6% during the 4th quarter. Invesco Ltd. now owns 1,896,877 shares of the company's stock worth $5,463,000 after acquiring an additional 1,792,572 shares during the last quarter. Acadian Asset Management LLC raised its stake in ATRenew by 41.9% during the 2nd quarter. Acadian Asset Management LLC now owns 3,820,082 shares of the company's stock valued at $12,622,000 after purchasing an additional 1,127,933 shares during the last quarter. Prescott Group Capital Management L.L.C. boosted its holdings in ATRenew by 31.3% in the 4th quarter. Prescott Group Capital Management L.L.C. now owns 3,035,436 shares of the company's stock valued at $8,742,000 after purchasing an additional 724,415 shares during the period. Finally, Millennium Management LLC boosted its holdings in ATRenew by 252.3% in the 4th quarter. Millennium Management LLC now owns 659,508 shares of the company's stock valued at $1,899,000 after purchasing an additional 472,322 shares during the period. Institutional investors and hedge funds own 19.29% of the company's stock.

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.