Research Solutions Inc. (NASDAQ:RSSS) Sees Large Decrease in Short Interest

Key Points

• Short interest fell sharply to 58,161 shares as of August 31, down 47.2% from mid-August. Short interest represents 0.2% of shares outstanding, with a days-to-cover ratio of 3.5.
• Institutional investors own 33.6% of Research Solutions, with several firms initiating positions and Navalign Investment Management increasing its stake by 154.7%.
• The stock recently traded near its 52-week low at $1.97. Although quarterly revenue slightly exceeded expectations, earnings of $0.02 per share missed the $0.04 consensus; analysts maintain a “Moderate Buy” consensus with an average price target of $3.83.

Research Solutions Inc. (NASDAQ:RSSS - Get Free Report) was the target of a significant decline in short interest in August. As of August 31st, there was short interest totaling 58,161 shares, a decline of 47.2% from the August 15th total of 110,093 shares. Based on an average daily trading volume, of 16,579 shares, the days-to-cover ratio is presently 3.5 days. Currently, 0.2% of the company's stock are sold short.

Hedge Funds Weigh In On Research Solutions

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. NewEdge Advisors LLC acquired a new position in Research Solutions during the second quarter worth $60,000. Hillsdale Investment Management Inc. acquired a new position in shares of Research Solutions during the 4th quarter valued at about $288,000. BlackRock Inc. acquired a new position in shares of Research Solutions during the 2nd quarter valued at about $332,000. Navalign LLC raised its stake in shares of Research Solutions by 154.7% in the 1st quarter. Navalign LLC now owns 251,126 shares of the company's stock valued at $568,000 after acquiring an additional 152,546 shares in the last quarter. Finally, North Star Investment Management Corp. acquired a new stake in Research Solutions in the 1st quarter worth approximately $754,000. Institutional investors own 33.60% of the company's stock.

Research Solutions Stock Performance

Shares of NASDAQ:RSSS traded down $0.01 during midday trading on Tuesday, hitting $1.97. 131,296 shares of the stock were exchanged, compared to its average volume of 58,644. The company has a market capitalization of $65.89 million, a PE ratio of 21.95 and a beta of 0.75. Research Solutions has a 52-week low of $1.92 and a 52-week high of $4.12. The business's fifty day simple moving average is $2.22 and its two-hundred day simple moving average is $2.30.

Research Solutions (NASDAQ:RSSS - Get Free Report) last issued its earnings results on Wednesday, September 9th. The company reported $0.02 earnings per share for the quarter, missing the consensus estimate of $0.04 by ($0.02). The firm had revenue of $12.08 million during the quarter, compared to analyst estimates of $11.95 million. Research Solutions had a return on equity of 16.32% and a net margin of 5.84%. As a group, equities analysts anticipate that Research Solutions will post 0.12 EPS for the current year.

Key Stories Impacting Research Solutions

Here are the key news stories impacting Research Solutions this week:

• Positive Sentiment: Maxim Group projects Research Solutions will remain profitable, with quarterly EPS estimates of $0.02 for most periods and $0.03 in fourth quarters. Its forecast implies FY2027 EPS of $0.10 and FY2028 EPS of $0.11, supporting expectations for continued earnings generation. Research Solutions stock information
• Neutral Sentiment: The estimates are broadly consistent across the multiple reports: Maxim forecasts $0.02 EPS in each of the first three quarters of fiscal 2027 and 2028, followed by $0.03 EPS in the fourth quarter. No new revenue outlook, strategic update, analyst recommendation, or valuation change was provided.
• Negative Sentiment: Maxim’s FY2027 and FY2028 EPS forecasts of $0.10 and $0.11, respectively, suggest only modest profit growth and remain below the company’s current-year consensus estimate of $0.12. This may limit upside enthusiasm, particularly after Research Solutions recently missed quarterly EPS expectations, reporting $0.02 versus a $0.04 consensus, despite slightly better-than-expected revenue.

Analyst Ratings Changes

Several equities analysts have weighed in on RSSS shares. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Research Solutions in a research note on Wednesday, August 12th. Lake Street Capital reduced their price target on shares of Research Solutions from $5.00 to $4.00 and set a "buy" rating for the company in a research report on Monday, May 18th. Three analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $3.83.

Research Solutions Company Profile

Research Solutions, Inc NASDAQ: RSSS is a provider of software and managed services that streamline access to and management of scientific, technical and medical research. The company's flagship platform automates the acquisition, licensing and delivery of journal articles, conference proceedings and other pay-walled content, enabling institutions to reduce administrative overhead and control subscription costs.

Key offerings include self-service workflows for document requests, enterprise-grade managed services for high-volume users, and analytics tools that deliver detailed reporting on spend, usage patterns and supplier performance.

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