RCM Technologies (NASDAQ:RCMT) Downgraded to "Hold" Rating by Wall Street Zen

Key Points

• RCM Technologies was downgraded to "Hold" by Wall Street Zen, adding to a mixed analyst picture that now includes one Buy rating and two Hold ratings. The stock’s overall consensus rating remains Hold with a consensus target price of $36.00.
• The company recently reported strong quarterly results, with earnings of $0.80 per share beating estimates and revenue of $86.48 million topping forecasts. It also posted a 5.03% net margin and 37.76% return on equity.
• Shares opened at $26.38, leaving RCM Technologies with a market cap of about $187 million; the stock has traded between $17.26 and $32.50 over the past 52 weeks. Insider selling has continued recently, while institutional investors collectively own about 43.2% of the company.

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

Other analysts have also issued research reports about the company. Zacks Research lowered RCM Technologies from a "strong-buy" rating to a "hold" rating in a report on Friday, June 5th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of RCM Technologies in a report on Friday, March 27th. Finally, Benchmark increased their price objective on RCM Technologies from $32.00 to $36.00 and gave the company a "buy" rating in a research report on Wednesday, April 8th. One research analyst has rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $36.00.

RCM Technologies Stock Performance

NASDAQ:RCMT opened at $26.38 on Monday. The stock has a market cap of $187.03 million, a price-to-earnings ratio of 12.44 and a beta of 0.34. The company has a quick ratio of 1.92, a current ratio of 1.92 and a debt-to-equity ratio of 0.65. The company's 50 day moving average price is $26.69 and its 200-day moving average price is $22.30. RCM Technologies has a 52 week low of $17.26 and a 52 week high of $32.50.

RCM Technologies (NASDAQ:RCMT - Get Free Report) last announced its quarterly earnings data on Friday, April 3rd. The business services provider reported $0.80 earnings per share for the quarter, topping analysts' consensus estimates of $0.58 by $0.22. The company had revenue of $86.48 million during the quarter, compared to analyst estimates of $84.46 million. RCM Technologies had a net margin of 5.03% and a return on equity of 37.76%. On average, equities research analysts forecast that RCM Technologies will post 2.23 earnings per share for the current fiscal year.

Insider Activity at RCM Technologies

In related news, CFO Kevin D. Miller sold 4,734 shares of the firm'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 sale, the chief financial officer 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. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Chairman Bradley Vizi sold 8,237 shares of RCM Technologies stock in a transaction that occurred on Wednesday, April 8th. The stock was sold at an average price of $27.52, for a total transaction of $226,682.24. Following the completion of the sale, the chairman directly owned 1,489,240 shares of the company's stock, valued at approximately $40,983,884.80. This trade represents a 0.55% decrease in their position. 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. Insiders sold 36,437 shares of company stock worth $1,068,434 in the last 90 days. 28.00% of the stock is currently owned by corporate insiders.

Institutional Trading of RCM Technologies

A number of hedge funds have recently bought and sold shares of the company. Renaissance Technologies LLC boosted its position in RCM Technologies by 3.6% in the first quarter. Renaissance Technologies LLC now owns 434,877 shares of the business services provider's stock worth $8,324,000 after purchasing an additional 15,304 shares during the last quarter. Vanguard Group Inc. grew its stake in shares of RCM Technologies by 3.1% during the 3rd quarter. Vanguard Group Inc. now owns 279,889 shares of the business services provider's stock valued at $7,431,000 after purchasing an additional 8,532 shares during the period. Pacific Ridge Capital Partners LLC grew its stake in shares of RCM Technologies by 40.7% during the 4th quarter. Pacific Ridge Capital Partners LLC now owns 258,231 shares of the business services provider's stock valued at $5,280,000 after purchasing an additional 74,760 shares during the period. Dimensional Fund Advisors LP increased its position in shares of RCM Technologies by 1.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 169,945 shares of the business services provider's stock valued at $3,253,000 after purchasing an additional 1,774 shares during the last quarter. Finally, Punch & Associates Investment Management Inc. increased its position in shares of RCM Technologies by 12.8% during the 1st quarter. Punch & Associates Investment Management Inc. now owns 153,511 shares of the business services provider's stock valued at $2,938,000 after purchasing an additional 17,433 shares during the last quarter. Hedge funds and other institutional investors own 43.20% of the company's stock.

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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