ATRenew (NYSE:RERE) Trading Up 7.5% - Here's Why

Key Points

• ATRenew's share price **increased by 7.5%**, reaching highs of $3.38 during trading, following a decrease in trading volume.
• The company was upgraded from a **"buy" to a "strong-buy" rating** by Wall Street Zen, reflecting growing analyst confidence.
• ATRenew reported earnings of **$0.04 per share**, which fell short of analyst expectations, while also announcing a **stock buyback program** to indicate confidence in its stock value.

Shares of ATRenew Inc. Sponsored ADR (NYSE:RERE - Get Free Report) rose 7.5% during mid-day trading on Monday . The company traded as high as $3.38 and last traded at $3.36. Approximately 436,007 shares were traded during mid-day trading, a decline of 66% from the average daily volume of 1,282,216 shares. The stock had previously closed at $3.12.

Analysts Set New Price Targets

Separately, Wall Street Zen raised ATRenew from a "buy" rating to a "strong-buy" rating in a report on Saturday, August 2nd.

ATRenew Trading Up 3.3%

The company has a 50 day simple moving average of $3.19 and a two-hundred day simple moving average of $2.91. The firm has a market capitalization of $879.15 million, a P/E ratio of 51.50 and a beta of 0.20.

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

ATRenew announced that its board has initiated a share buyback plan on Monday, June 30th that allows the company to buyback $0.00 in outstanding shares. This buyback authorization allows the company to reacquire shares of its stock through open market purchases. Shares buyback plans are typically an indication that the company's leadership believes its shares are undervalued.

Hedge Funds Weigh In On ATRenew

A number of institutional investors and hedge funds have recently made changes to their positions in RERE. Sei Investments Co. bought a new stake in shares of ATRenew in the 4th quarter worth about $201,000. Russell Investments Group Ltd. purchased a new position in shares of ATRenew during the fourth quarter valued at approximately $82,000. Invesco Ltd. grew its stake in shares of ATRenew by 1,718.6% during the fourth quarter. Invesco Ltd. now owns 1,896,877 shares of the company's stock valued at $5,463,000 after buying an additional 1,792,572 shares during the last quarter. Harber Asset Management LLC raised its holdings in shares of ATRenew by 13.9% in the fourth quarter. Harber Asset Management LLC now owns 1,246,780 shares of the company's stock worth $3,591,000 after buying an additional 152,163 shares during the period. Finally, Walleye Capital LLC lifted its stake in shares of ATRenew by 3,661.6% during the 4th quarter. Walleye Capital LLC now owns 433,859 shares of the company's stock worth $1,250,000 after acquiring an additional 422,325 shares during the last quarter. 19.29% of the stock is owned by hedge funds and other 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.