Wall Street Zen Upgrades ATRenew (NYSE:RERE) to "Strong-Buy"

Key Points

• ATRenew has been upgraded from a "buy" rating to a "strong-buy" rating by Wall Street Zen, indicating increased analyst confidence in the stock's potential.
• The company recently reported $0.04 earnings per share (EPS) for the quarter, falling short of the expected $0.05, along with revenues significantly below analysts' forecasts.
• ATRenew has authorized a share repurchase program, suggesting that management believes the company's shares are currently undervalued.

ATRenew (NYSE:RERE - Get Free Report) was upgraded by stock analysts at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a report released on Saturday.

ATRenew Price Performance

Shares of RERE traded up $0.05 during trading hours on Friday, hitting $3.43. The stock had a trading volume of 870,798 shares, compared to its average volume of 1,294,683. The firm has a market capitalization of $835.25 million, a P/E ratio of 48.93 and a beta of 0.20. ATRenew has a 1-year low of $2.00 and a 1-year high of $4.35. The firm has a 50 day simple moving average of $3.14 and a 200-day simple moving average of $2.89.

ATRenew (NYSE:RERE - Get Free Report) last released its quarterly 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). The company had revenue of $641.26 million for the quarter, compared to analyst estimates of $4.62 billion. ATRenew had a net margin of 0.73% and a return on equity of 8.91%. Equities analysts predict that ATRenew will post 0.09 EPS for the current fiscal year.

ATRenew announced that its board has approved a share repurchase program on Monday, June 30th that authorizes the company to repurchase $0.00 in outstanding shares. This repurchase authorization authorizes the company to buy shares of its stock through open market purchases. Shares repurchase programs are often a sign that the company's management believes its stock is undervalued.

Institutional Investors Weigh In On ATRenew

A number of hedge funds have recently modified their holdings of the stock. E Fund Management Hong Kong Co. Ltd. bought a new stake in ATRenew during the 2nd quarter valued at $406,000. Acadian Asset Management LLC grew its position in shares of ATRenew by 27.4% during the 1st quarter. Acadian Asset Management LLC now owns 2,692,149 shares of the company's stock valued at $7,899,000 after purchasing an additional 579,334 shares in the last quarter. Caxton Associates LLP purchased a new position in ATRenew in the first quarter worth $114,000. Eschler Asset Management LLP increased its stake in ATRenew by 163.6% in the first quarter. Eschler Asset Management LLP now owns 226,700 shares of the company's stock valued at $666,000 after acquiring an additional 140,700 shares during the last quarter. Finally, Cubist Systematic Strategies LLC increased its stake in ATRenew by 15.9% in the first quarter. Cubist Systematic Strategies LLC now owns 66,119 shares of the company's stock valued at $194,000 after acquiring an additional 9,094 shares during the last quarter. Institutional investors own 19.29% of the company's stock.

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.