DA Davidson Reiterates Neutral Rating for RideNow Group (NASDAQ:RDNW)

Key Points

• DA Davidson reiterated a neutral rating on RideNow Group with a $6 price target, implying about a 12% downside from the prior close.
• Analyst coverage is mixed—MarketBeat shows an average Hold rating (1 Buy, 2 Hold, 1 Sell) and Robert W. Baird lifted its target to $7 while keeping a neutral view.
• Shares traded around $6.82 (market cap ~$259M); the company reported a -$0.17 quarterly EPS, a negative net margin and ROE, and analysts expect ~-0.89 EPS for the year, with institutional investors owning ~66% of the stock.

RideNow Group (NASDAQ:RDNW - Get Free Report)'s stock had its "neutral" rating reaffirmed by DA Davidson in a research note issued on Tuesday,Benzinga reports. They presently have a $6.00 target price on the stock. DA Davidson's target price points to a potential downside of 12.02% from the stock's previous close.

Several other equities research analysts have also weighed in on the company. Weiss Ratings reissued a "sell (d-)" rating on shares of RideNow Group in a report on Thursday, January 22nd. Wall Street Zen upgraded shares of RideNow Group to a "buy" rating in a research report on Saturday, January 10th. Finally, Robert W. Baird boosted their price target on shares of RideNow Group from $5.00 to $7.00 and gave the company a "neutral" rating in a research report on Tuesday. One analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, RideNow Group has an average rating of "Hold" and an average target price of $6.00.

RideNow Group Trading Up 1.8%

Shares of RDNW stock traded up $0.12 during trading hours on Tuesday, hitting $6.82. 43,357 shares of the company were exchanged, compared to its average volume of 41,860. The firm has a fifty day simple moving average of $5.97 and a 200 day simple moving average of $4.92. RideNow Group has a 52-week low of $1.46 and a 52-week high of $7.17. The stock has a market capitalization of $259.30 million, a price-to-earnings ratio of -2.44 and a beta of 1.25.

RideNow Group (NASDAQ:RDNW - Get Free Report) last posted its quarterly earnings data on Monday, March 9th. The company reported ($0.17) EPS for the quarter. RideNow Group had a negative net margin of 9.35% and a negative return on equity of 223.85%. The firm had revenue of $256.90 million during the quarter. Sell-side analysts anticipate that RideNow Group will post -0.89 EPS for the current year.

Hedge Funds Weigh In On RideNow Group

Hedge funds have recently bought and sold shares of the company. City State Bank bought a new position in RideNow Group in the 4th quarter valued at $26,000. Dimensional Fund Advisors LP bought a new position in shares of RideNow Group in the fourth quarter worth $64,000. Balyasny Asset Management L.P. purchased a new stake in shares of RideNow Group in the fourth quarter worth $66,000. OMERS ADMINISTRATION Corp bought a new stake in RideNow Group during the fourth quarter valued at $69,000. Finally, Barclays PLC purchased a new position in RideNow Group during the fourth quarter worth about $94,000. Hedge funds and other institutional investors own 66.14% of the company's stock.

About RideNow Group

RideNow Group, Inc NASDAQ: RDNW is a leading U.S. retailer of powersports vehicles, offering both new and pre-owned inventory to enthusiasts and recreational riders. The company's dealerships carry a diverse lineup of motorcycles, all-terrain vehicles (ATVs), side-by-sides, personal watercraft and snowmobiles from major manufacturers. In addition to vehicle sales, RideNow Group provides comprehensive service and maintenance, aftermarket parts and accessories and a range of financing and protection plans tailored to powersports customers.

Founded in 2004 and headquartered in Houston, Texas, RideNow Group has grown through a combination of organic expansion and strategic acquisitions.

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