RCM Technologies (NASDAQ:RCMT) Stock Passes Above Two Hundred Day Moving Average - Here's Why

Key Points

• RCM Technologies shares rose above their 200-day moving average, trading as high as $42.51 and last changing hands at $40.51, compared with a 200-day average of $26.69.
• Analysts have a consensus “Buy” rating and an average price target of $45.00, while recent upgrades included Zacks Research and Wall Street Zen moving the stock to “Strong Buy.”
• The company beat quarterly expectations, reporting $0.82 in EPS versus a $0.62 estimate and revenue of $93.82 million versus $81.75 million. However, insiders sold 219,997 shares worth about $8.24 million over the past three months.

RCM Technologies, Inc. (NASDAQ:RCMT - Get Free Report) shares passed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $26.69 and traded as high as $42.51. RCM Technologies shares last traded at $40.51, with a volume of 53,026 shares traded.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on RCMT shares. Weiss Ratings restated a "hold (c+)" rating on shares of RCM Technologies in a report on Friday, July 17th. Zacks Research upgraded shares of RCM Technologies from a "hold" rating to a "strong-buy" rating in a research report on Monday, August 24th. Benchmark boosted their target price on shares of RCM Technologies from $36.00 to $45.00 and gave the company a "buy" rating in a research note on Monday, August 17th. B. Riley Financial increased their target price on RCM Technologies from $40.00 to $45.00 and gave the company a "buy" rating in a report on Monday, August 17th. Finally, Wall Street Zen upgraded RCM Technologies from a "hold" rating to a "strong-buy" rating in a report on Sunday, August 16th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, the company has a consensus rating of "Buy" and an average price target of $45.00.

RCM Technologies Stock Performance

The firm's fifty day moving average is $31.95 and its 200 day moving average is $26.69. The firm has a market capitalization of $288.03 million, a price-to-earnings ratio of 17.61 and a beta of 0.32. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.92 and a quick ratio of 1.92.

RCM Technologies (NASDAQ:RCMT - Get Free Report) last released its earnings results on Thursday, August 13th. The business services provider reported $0.82 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.62 by $0.20. RCM Technologies had a net margin of 5.13% and a return on equity of 37.92%. The company had revenue of $93.82 million during the quarter, compared to the consensus estimate of $81.75 million. On average, analysts predict that RCM Technologies, Inc. will post 2.6 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Kevin Miller sold 60,000 shares of the firm's stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $37.98, for a total transaction of $2,278,800.00. Following the completion of the sale, the chief financial officer directly owned 338,362 shares of the company's stock, valued at $12,850,988.76. This trade represents a 15.06% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Chairman Bradley Vizi sold 74,719 shares of RCM Technologies stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $38.86, for a total value of $2,903,580.34. Following the sale, the chairman owned 1,402,477 shares of the company's stock, valued at approximately $54,500,256.22. This represents a 5.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 219,997 shares of company stock valued at $8,238,837 in the last three months. Insiders own 28.00% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. BNP Paribas Financial Markets lifted its stake in shares of RCM Technologies by 44.1% in the 2nd quarter. BNP Paribas Financial Markets now owns 1,892 shares of the business services provider's stock valued at $45,000 after purchasing an additional 579 shares during the last quarter. California State Teachers Retirement System increased its position in RCM Technologies by 570.9% during the second quarter. California State Teachers Retirement System now owns 1,778 shares of the business services provider's stock worth $50,000 after buying an additional 1,513 shares during the last quarter. JPMorgan Chase & Co. raised its holdings in RCM Technologies by 1,241.0% during the second quarter. JPMorgan Chase & Co. now owns 2,320 shares of the business services provider's stock valued at $55,000 after buying an additional 2,147 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new position in RCM Technologies during the third quarter valued at about $60,000. Finally, Lazard Asset Management LLC acquired a new stake in shares of RCM Technologies in the second quarter worth about $77,000. Institutional investors and hedge funds own 43.20% of the company's stock.

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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