Traders Buy High Volume of Put Options on RB Global (NYSE:RBA)

Key Points

• Unusual bearish options activity: Traders purchased 5,256 put options on RB Global, roughly 1,574% above the typical volume of 314 contracts.
• Shares declined sharply: RB Global fell $5.69 to $78.61, near its 52-week low of $78.05, despite reporting quarterly earnings and revenue above analyst expectations.
• Analyst sentiment remains positive: The stock carries a “Moderate Buy” consensus rating with an average price target of $126.29, while the company increased its quarterly dividend to $0.33 per share.

RB Global, Inc. (NYSE:RBA - Get Free Report) TSE: RBA saw some unusual options trading on Monday. Traders bought 5,256 put options on the company. This represents an increase of approximately 1,574% compared to the typical volume of 314 put options.

RB Global Stock Performance

RB Global stock traded down $5.69 during midday trading on Monday, hitting $78.61. The stock had a trading volume of 1,473,757 shares, compared to its average volume of 1,461,748. RB Global has a 52-week low of $78.05 and a 52-week high of $119.33. The company has a market capitalization of $14.25 billion, a PE ratio of 33.79, a P/E/G ratio of 1.44 and a beta of 0.53. The firm's fifty day moving average is $84.34 and its two-hundred day moving average is $98.72. The company has a current ratio of 1.31, a quick ratio of 1.22 and a debt-to-equity ratio of 0.51.

RB Global (NYSE:RBA - Get Free Report) TSE: RBA last issued its quarterly earnings results on Tuesday, August 4th. The business services provider reported $1.13 earnings per share for the quarter, beating the consensus estimate of $1.09 by $0.04. The business had revenue of $1.66 billion for the quarter, compared to the consensus estimate of $1.21 billion. RB Global had a net margin of 9.99% and a return on equity of 12.37%. On average, research analysts forecast that RB Global will post 4.06 EPS for the current year.

RB Global Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 17th. Investors of record on Tuesday, August 25th were issued a $0.33 dividend. The ex-dividend date of this dividend was Tuesday, August 25th. This represents a $1.32 annualized dividend and a yield of 1.7%. This is an increase from RB Global's previous quarterly dividend of $0.31. RB Global's payout ratio is currently 56.65%.

Insiders Place Their Bets

In other news, Director Deborah Stein purchased 500 shares of the business's stock in a transaction on Wednesday, September 9th. The stock was acquired at an average cost of $80.91 per share, for a total transaction of $40,455.00. Following the purchase, the director directly owned 2,325 shares in the company, valued at $188,115.75. This trade represents a 27.40% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Chloe Harford purchased 1,200 shares of RB Global stock in a transaction dated Monday, August 24th. The shares were acquired at an average cost of $83.74 per share, with a total value of $100,488.00. Following the transaction, the director directly owned 1,200 shares in the company, valued at approximately $100,488. The trade was a ∞ increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 0.57% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On RB Global

A number of institutional investors have recently bought and sold shares of RBA. Armstrong Henry H Associates Inc. raised its stake in shares of RB Global by 30.1% in the third quarter. Armstrong Henry H Associates Inc. now owns 53,226 shares of the business services provider's stock valued at $4,332,000 after acquiring an additional 12,317 shares during the period. Public Employees Retirement System of Ohio raised its stake in shares of RB Global by 9.2% during the first quarter. Public Employees Retirement System of Ohio now owns 207,778 shares of the business services provider's stock valued at $19,873,000 after acquiring an additional 17,489 shares in the last quarter. Legacy Wealth Asset Management LLC raised its position in RB Global by 127.3% during the 2nd quarter. Legacy Wealth Asset Management LLC now owns 26,343 shares of the business services provider's stock valued at $3,068,000 after purchasing an additional 14,755 shares in the last quarter. Bank of America Corp DE lifted its stake in RB Global by 7.8% in the first quarter. Bank of America Corp DE now owns 1,452,438 shares of the business services provider's stock worth $139,216,000 after acquiring an additional 104,560 shares during the period. Finally, Oppenheimer Asset Management Inc. purchased a new stake in shares of RB Global in the 2nd quarter worth approximately $17,590,000. Hedge funds and other institutional investors own 95.37% of the company's stock.

Wall Street Analyst Weigh In

RBA has been the subject of a number of research reports. Raymond James Financial raised shares of RB Global from an "outperform" rating to a "strong-buy" rating and set a $145.00 target price for the company in a report on Tuesday, June 30th. Royal Bank Of Canada reiterated an "outperform" rating and set a $152.00 price target on shares of RB Global in a research note on Wednesday, September 23rd. Wall Street Zen downgraded shares of RB Global from a "buy" rating to a "hold" rating in a research report on Saturday, July 18th. Barclays reduced their price objective on RB Global from $121.00 to $110.00 and set an "overweight" rating for the company in a research note on Tuesday, October 6th. Finally, National Bank Financial upped their price objective on RB Global from $130.00 to $132.00 and gave the stock an "outperform" rating in a research note on Thursday. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $126.29.

About RB Global

RB Global, Inc is a global marketplace and provider of asset management and disposition services for commercial and industrial equipment, vehicles and other durable assets. The company connects buyers and sellers through live and online auctions, negotiated sales and digital marketplaces, serving industries such as construction, transportation, agriculture, energy, government and automotive.

Its portfolio includes Ritchie Bros., a major auction and marketplace brand for heavy equipment; IAA, which specializes in salvage and repairable vehicle auctions; and Mascus, an online marketplace for used equipment.

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