RB Global (NYSE:RBA) Stock Falls 5.6% - Should You Sell?

Key Points

• RB Global shares fell 5.6% to about $79.60, trading well below their 50-day and 200-day moving averages, while volume was 84% below average.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $126.29, despite some recent rating downgrades and target cuts.
• The company reported quarterly earnings and revenue above expectations, raised its quarterly dividend to $0.33 per share, and saw purchases by company directors and continued institutional ownership of 95.37%.

RB Global, Inc. (NYSE:RBA - Get Free Report) TSE: RBA's stock price dropped 5.6% on Monday. The company traded as low as $80.64 and last traded at $79.6020. 236,507 shares changed hands during trading, a decline of 84% from the average session volume of 1,455,745 shares. The stock had previously closed at $84.30.

Analysts Set New Price Targets

Several research firms have recently issued reports on RBA. Zacks Research lowered shares of RB Global from a "strong-buy" rating to a "hold" rating in a research report on Thursday, August 13th. Barclays cut their price objective on shares of RB Global from $121.00 to $110.00 and set an "overweight" rating for the company in a report on Tuesday, October 6th. Raymond James Financial upgraded shares of RB Global from an "outperform" rating to a "strong-buy" rating and set a $145.00 price objective for the company in a research note on Tuesday, June 30th. National Bank Financial lifted their price objective on shares of RB Global from $130.00 to $132.00 and gave the company an "outperform" rating in a research note on Thursday. Finally, Weiss Ratings cut shares of RB Global from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, September 18th. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $126.29.

RB Global Trading Down 5.0%

The firm has a 50 day simple moving average of $84.34 and a 200 day simple moving average of $98.72. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.22 and a current ratio of 1.31. The firm has a market cap of $14.52 billion, a P/E ratio of 34.42, a P/E/G ratio of 1.44 and a beta of 0.53.

RB Global (NYSE:RBA - Get Free Report) TSE: RBA last announced 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. RB Global had a return on equity of 12.37% and a net margin of 9.99%. The firm had revenue of $1.66 billion for the quarter, compared to analysts' expectations of $1.21 billion. On average, equities research analysts predict that RB Global, Inc. will post 4.06 EPS for the current fiscal 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 dividend of $0.33 per share. This is a boost from RB Global's previous quarterly dividend of $0.31. The ex-dividend date of this dividend was Tuesday, August 25th. This represents a $1.32 dividend on an annualized basis and a yield of 1.6%. RB Global's payout ratio is currently 56.65%.

Insider Activity at RB Global

In other news, Director Chloe Harford purchased 1,200 shares of RB Global stock in a transaction dated Monday, August 24th. The stock was purchased at an average cost of $83.74 per share, for a total transaction of $100,488.00. Following the transaction, the director directly owned 1,200 shares of the company's stock, valued at approximately $100,488. This trade represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Deborah Stein purchased 500 shares of the firm's stock in a transaction dated Wednesday, September 9th. The stock was purchased at an average cost of $80.91 per share, for a total transaction of $40,455.00. Following the acquisition, the director owned 2,325 shares of the company's stock, valued at approximately $188,115.75. This trade represents a 27.40% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 0.57% of the company's stock.

Hedge Funds Weigh In On RB Global

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. purchased a new position in shares of RB Global in the 2nd quarter worth about $1,816,059,000. EdgePoint Investment Group Inc. raised its holdings in shares of RB Global by 14.4% during the 1st quarter. EdgePoint Investment Group Inc. now owns 8,812,865 shares of the business services provider's stock valued at $845,337,000 after buying an additional 1,111,217 shares in the last quarter. Royal Bank of Canada raised its holdings in shares of RB Global by 13.1% during the 1st quarter. Royal Bank of Canada now owns 5,043,648 shares of the business services provider's stock valued at $483,432,000 after buying an additional 585,617 shares in the last quarter. Jupiter Topco LLC purchased a new position in shares of RB Global during the 2nd quarter valued at about $514,871,000. Finally, Janus Henderson Group PLC lifted its position in RB Global by 7.0% in the 1st quarter. Janus Henderson Group PLC now owns 4,371,610 shares of the business services provider's stock worth $418,876,000 after buying an additional 285,713 shares during the last quarter. 95.37% of the stock is currently owned by hedge funds and other institutional investors.

RB Global Company Profile

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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