RCM Technologies (NASDAQ:RCMT) Downgraded by Wall Street Zen to Buy

Key Points

• Wall Street Zen downgraded RCM Technologies from “strong-buy” to “buy”, while the broader analyst consensus still sits at Buy with an average price target of $36.00.
• The company recently reported better-than-expected quarterly results, posting $0.80 EPS versus the $0.58 estimate and revenue of $86.48 million versus the $84.46 million forecast.
• Insider activity has included recent sales by top executives, though institutional ownership remains meaningful at 43.20% of the stock.

RCM Technologies (NASDAQ:RCMT - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued to clients and investors on Saturday.

RCMT has been the topic of several other reports. Benchmark boosted their price target on RCM Technologies from $32.00 to $36.00 and gave the stock a "buy" rating in a report on Wednesday, April 8th. Zacks Research upgraded RCM Technologies from a "hold" rating to a "strong-buy" rating in a report on Monday, April 13th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of RCM Technologies in a research note on Friday, March 27th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Buy" and an average price target of $36.00.

RCM Technologies Stock Performance

NASDAQ:RCMT opened at $23.12 on Friday. The stock has a market cap of $163.92 million, a P/E ratio of 10.91 and a beta of 0.46. The company has a current ratio of 1.85, a quick ratio of 1.85 and a debt-to-equity ratio of 0.54. The stock's 50-day moving average is $24.97 and its 200-day moving average is $21.77. RCM Technologies has a 1-year low of $17.26 and a 1-year high of $32.50.

RCM Technologies (NASDAQ:RCMT - Get Free Report) last released its quarterly earnings results on Friday, April 3rd. The business services provider reported $0.80 earnings per share for the quarter, topping the consensus estimate of $0.58 by $0.22. The company had revenue of $86.48 million for the quarter, compared to analysts' expectations of $84.46 million. RCM Technologies had a return on equity of 38.34% and a net margin of 5.03%. Equities research analysts anticipate that RCM Technologies will post 2.4 earnings per share for the current year.

Insider Buying and Selling

In related news, Chairman Bradley Vizi sold 13,666 shares of RCM Technologies stock in a transaction that occurred on Tuesday, April 7th. The stock was sold at an average price of $27.55, for a total value of $376,498.30. Following the transaction, the chairman directly owned 1,497,477 shares of the company's stock, valued at $41,255,491.35. The trade was a 0.90% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kevin D. Miller sold 4,734 shares of the business's stock in a transaction that occurred on Monday, April 27th. The shares were sold at an average price of $32.00, for a total value of $151,488.00. Following the completion of the transaction, the chief financial officer directly owned 439,066 shares in the company, valued at approximately $14,050,112. This trade represents a 1.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 36,437 shares of company stock worth $1,068,434. 28.00% of the stock is owned by insiders.

Hedge Funds Weigh In On RCM Technologies

Several institutional investors have recently added to or reduced their stakes in the business. Qube Research & Technologies Ltd lifted its stake in RCM Technologies by 5.4% in the third quarter. Qube Research & Technologies Ltd now owns 11,187 shares of the business services provider's stock valued at $297,000 after buying an additional 576 shares during the period. BNP Paribas Financial Markets lifted its stake in RCM Technologies by 44.1% in the second quarter. BNP Paribas Financial Markets now owns 1,892 shares of the business services provider's stock valued at $45,000 after buying an additional 579 shares during the period. Bank of America Corp DE lifted its stake in RCM Technologies by 28.1% in the third quarter. Bank of America Corp DE now owns 4,166 shares of the business services provider's stock valued at $111,000 after buying an additional 915 shares during the period. Ritholtz Wealth Management lifted its stake in RCM Technologies by 3.2% in the fourth quarter. Ritholtz Wealth Management now owns 42,724 shares of the business services provider's stock valued at $873,000 after buying an additional 1,333 shares during the period. Finally, Janney Montgomery Scott LLC lifted its stake in RCM Technologies by 3.9% in the first quarter. Janney Montgomery Scott LLC now owns 35,735 shares of the business services provider's stock valued at $684,000 after buying an additional 1,341 shares during the period. 43.20% of the stock is owned by institutional investors and hedge funds.

RCM Technologies Company Profile

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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