SmartRent (NYSE:SMRT) Shares Down 0.4% - Time to Sell?

Key Points

• Analyst sentiment remains cautious: SmartRent has an average “Reduce” rating, with an average price target of $1.20 after Keefe, Bruyette & Woods lowered its target from $1.40.
• Quarterly results fell short of expectations: The company reported a loss of $0.03 per share versus estimates of $0.02, while revenue of $38.39 million missed the $39.62 million consensus forecast. SmartRent also posted a negative net margin and return on equity.
• Insiders and institutions have been buying: Directors purchased 267,000 shares over the past three months, while institutional investors own 59.42% of the stock, including increased positions from Bank of America and Punch & Associates.

SmartRent, Inc. (NYSE:SMRT - Get Free Report) dropped 0.4% during trading on Thursday. The stock traded as low as $1.1550 and last traded at $1.1650. 722,900 shares were traded during trading, an increase of 1% from the average daily volume of 717,209 shares. The stock had previously closed at $1.17.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on SMRT shares. Weiss Ratings upgraded shares of SmartRent from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Friday, October 2nd. Keefe, Bruyette & Woods cut their price target on shares of SmartRent from $1.40 to $1.20 and set a "market perform" rating for the company in a research note on Monday, July 13th. Two investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Reduce" and an average price target of $1.20.

SmartRent Stock Performance

The stock has a market capitalization of $223.23 million, a P/E ratio of -11.65 and a beta of 1.64. The firm has a 50-day moving average price of $1.27 and a 200 day moving average price of $1.24.

SmartRent (NYSE:SMRT - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported ($0.03) earnings per share for the quarter, missing analysts' consensus estimates of ($0.02) by ($0.01). SmartRent had a negative net margin of 12.97% and a negative return on equity of 8.50%. The firm had revenue of $38.39 million for the quarter, compared to analysts' expectations of $39.62 million. On average, equities analysts anticipate that SmartRent, Inc. will post -0.1 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Ana G. Pinczuk bought 107,000 shares of the company's stock in a transaction that occurred on Tuesday, August 11th. The stock was bought at an average cost of $1.43 per share, for a total transaction of $153,010.00. Following the acquisition, the director directly owned 385,704 shares of the company's stock, valued at $551,556.72. The trade was a 38.39% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Thomas N. Bohjalian purchased 40,000 shares of SmartRent stock in a transaction that occurred on Wednesday, August 19th. The shares were bought at an average price of $1.40 per share, for a total transaction of $56,000.00. Following the completion of the transaction, the director owned 766,062 shares in the company, valued at $1,072,486.80. The trade was a 5.51% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last three months, insiders have purchased 267,000 shares of company stock valued at $378,110. 2.30% of the stock is currently owned by insiders.

Institutional Trading of SmartRent

Several hedge funds and other institutional investors have recently bought and sold shares of SMRT. Bank of America Corp DE increased its stake in shares of SmartRent by 1,900.9% in the first quarter. Bank of America Corp DE now owns 5,387,342 shares of the company's stock worth $8,081,000 after buying an additional 5,118,096 shares during the period. Punch & Associates Investment Management Inc. boosted its position in SmartRent by 163.9% during the 1st quarter. Punch & Associates Investment Management Inc. now owns 5,032,880 shares of the company's stock valued at $7,549,000 after buying an additional 3,125,595 shares during the period. Kennedy Capital Management LLC bought a new stake in SmartRent in the 4th quarter worth $4,463,000. Ancora Advisors LLC bought a new stake in SmartRent in the 2nd quarter worth $1,470,000. Finally, Bank of New York Mellon Corp purchased a new position in shares of SmartRent in the second quarter valued at about $564,000. Institutional investors own 59.42% of the company's stock.

About SmartRent

SmartRent, Inc provides smart-home and property-management technology for rental housing owners, operators and residents. Its platform is designed to help property managers automate operations, improve the resident experience and manage connected devices across multifamily, single-family rental, student housing and other residential communities.

The company's offerings include smart access systems, connected thermostats, sensors, leak detection devices and other Internet of Things hardware, supported by cloud-based software.

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