Kevin Miller Sells 4,413 Shares of RCM Technologies (NASDAQ:RCMT) Stock

Key Points

• CFO Kevin Miller sold 4,413 RCM Technologies shares at an average price of $42, generating $185,346; the transaction was conducted under a pre-arranged Rule 10b5-1 plan and reduced his holdings by 1.3%.
• RCMT reported stronger-than-expected quarterly results, with EPS of $0.82 versus the $0.62 consensus and revenue of $93.82 million versus $81.75 million expected.
• Analysts raised price targets to $45 and maintained a generally positive outlook, resulting in a consensus “Moderate Buy” rating; shares recently traded near their 52-week high.

RCM Technologies, Inc. (NASDAQ:RCMT - Get Free Report) CFO Kevin Miller sold 4,413 shares of the business's stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $42.00, for a total value of $185,346.00. Following the completion of the sale, the chief financial officer owned 333,949 shares of the company's stock, valued at $14,025,858. The trade was a 1.30% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

RCM Technologies Trading Up 1.5%

RCMT traded up $0.62 during trading on Tuesday, hitting $41.05. 181,762 shares of the stock were exchanged, compared to its average volume of 63,971. The firm has a 50 day simple moving average of $28.07 and a 200 day simple moving average of $24.70. The firm has a market cap of $291.04 million, a price-to-earnings ratio of 17.85 and a beta of 0.29. RCM Technologies, Inc. has a 1 year low of $17.26 and a 1 year high of $42.04. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.92 and a current ratio of 1.92.

RCM Technologies (NASDAQ:RCMT - Get Free Report) last issued its earnings results on Thursday, August 13th. The business services provider reported $0.82 earnings per share for the quarter, topping the consensus estimate of $0.62 by $0.20. RCM Technologies had a return on equity of 37.92% and a net margin of 5.13%.The business had revenue of $93.82 million during the quarter, compared to analysts' expectations of $81.75 million. As a group, equities analysts expect that RCM Technologies, Inc. will post 2.23 EPS for the current year.

Institutional Investors Weigh In On RCM Technologies

Hedge funds and other institutional investors have recently bought and sold shares of the company. Jane Street Group LLC grew its holdings in RCM Technologies by 41.2% in the first quarter. Jane Street Group LLC now owns 23,489 shares of the business services provider's stock worth $366,000 after purchasing an additional 6,852 shares during the last quarter. Geode Capital Management LLC lifted its holdings in shares of RCM Technologies by 78.9% during the 2nd quarter. Geode Capital Management LLC now owns 120,382 shares of the business services provider's stock valued at $2,838,000 after purchasing an additional 53,094 shares during the last quarter. JPMorgan Chase & Co. boosted its position in shares of RCM Technologies by 1,241.0% in the 2nd quarter. JPMorgan Chase & Co. now owns 2,320 shares of the business services provider's stock worth $55,000 after purchasing an additional 2,147 shares in the last quarter. Russell Investments Group Ltd. grew its stake in RCM Technologies by 264.4% during the 2nd quarter. Russell Investments Group Ltd. now owns 49,386 shares of the business services provider's stock worth $1,164,000 after buying an additional 35,835 shares during the last quarter. Finally, New York State Common Retirement Fund purchased a new position in RCM Technologies during the 2nd quarter worth $101,000. Hedge funds and other institutional investors own 43.20% of the company's stock.

Analysts Set New Price Targets

RCMT has been the topic of several recent research reports. B. Riley Financial increased their target price on shares of RCM Technologies from $40.00 to $45.00 and gave the stock a "buy" rating in a report on Monday. Zacks Research cut shares of RCM Technologies from a "strong-buy" rating to a "hold" rating in a research report on Friday, June 5th. Benchmark increased their price objective on shares of RCM Technologies from $36.00 to $45.00 and gave the company a "buy" rating in a research note on Monday. Wall Street Zen raised shares of RCM Technologies from a "hold" rating to a "strong-buy" rating in a report on Sunday. Finally, Weiss Ratings restated a "hold (c+)" rating on shares of RCM Technologies in a report on Friday, July 17th. Two investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $45.00.

More RCM Technologies News

Here are the key news stories impacting RCM Technologies this week:

• Positive Sentiment: Benchmark raised its price target to $45 from $36 and maintained a “buy” rating. B. Riley also increased its target to $45 and reiterated a buy rating. The $45 target is now the consensus target, implying additional potential upside from recent levels.
• Positive Sentiment: RCMT’s latest quarterly results were stronger than expected, with earnings per share of $0.82 versus the $0.62 consensus estimate and revenue of $93.82 million compared with expectations of $81.75 million. The company’s 37.9% return on equity and projected full-year EPS of $2.23 add support to the bullish analyst outlook.
• Neutral Sentiment: Institutional ownership stands at 43.2%, with Geode Capital, Russell Investments, Jane Street and JPMorgan among investors that recently increased their positions. This suggests growing institutional interest, although the purchases were reported for prior quarters rather than the current session.
• Negative Sentiment: Insiders disclosed approximately $7.7 million in stock sales from August 14–18. CFO Kevin D. Miller sold 94,413 shares, Chairman Bradley Vizi sold 100,000 shares, and insider Michael Saks sold 11,792 shares. The transactions reduced their holdings by roughly 1.3% to 15.1%.
• Negative Sentiment: The insider sales occurred as RCMT advanced sharply from its 52-week low and approached its 52-week high, which could signal profit-taking and may weigh on investor sentiment. However, the CFO’s transactions were executed under a pre-arranged Rule 10b5-1 plan, making them less clearly indicative of a change in management’s outlook. SEC insider transaction filing

About RCM Technologies

RCM Technologies, Inc NASDAQ: RCMT is an information technology consulting firm that specializes in delivering secure, enterprise-level technology solutions. The company's core offerings include IT infrastructure design and integration, data center modernization, cloud migration and management, cybersecurity services, and digital collaboration platforms. RCM Technologies serves clients across federal and commercial markets, tailoring its services to meet the strict security and compliance requirements of government agencies as well as the performance and scalability needs of private-sector organizations.

Founded in the mid-1980s and headquartered in Dresher, Pennsylvania, RCM Technologies has built a reputation for end-to-end project delivery, from initial assessment and design through implementation and ongoing managed support.

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