RCM Technologies (NASDAQ:RCMT) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded RCM Technologies from a “buy” to a “hold,” even as other analysts remain more positive and the stock’s consensus rating stays at “buy.”
• The company beat quarterly expectations, reporting EPS of $0.80 versus the $0.58 estimate and revenue of $86.48 million versus $84.46 million expected.
• Shares were trading around $23.78, with the stock sitting well below its 52-week high of $32.50; insiders have also sold shares recently, including the CFO and chairman.

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

RCMT has been the subject of several other research reports. Benchmark boosted their price target on shares of RCM Technologies from $32.00 to $36.00 and gave the stock a "buy" rating in a report on Wednesday, April 8th. Weiss Ratings reiterated a "hold (c)" rating on shares of RCM Technologies in a research note on Friday, March 27th. Finally, Zacks Research upgraded shares of RCM Technologies from a "hold" rating to a "strong-buy" rating in a research note on Monday, April 13th. One 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 stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Buy" and a consensus target price of $36.00.

RCM Technologies Trading Down 0.4%

NASDAQ RCMT opened at $23.78 on Friday. The company has a quick ratio of 1.92, a current ratio of 1.92 and a debt-to-equity ratio of 0.65. RCM Technologies has a 52 week low of $17.26 and a 52 week high of $32.50. The stock has a market capitalization of $168.60 million, a PE ratio of 11.22 and a beta of 0.34. The firm has a 50 day moving average of $25.90 and a two-hundred day moving average of $21.86.

RCM Technologies (NASDAQ:RCMT - Get Free Report) last posted its quarterly earnings results on Friday, April 3rd. The business services provider reported $0.80 EPS for the quarter, topping the consensus estimate of $0.58 by $0.22. RCM Technologies had a net margin of 5.03% and a return on equity of 37.76%. The company had revenue of $86.48 million during the quarter, compared to analysts' expectations of $84.46 million. As a group, research analysts expect that RCM Technologies will post 2.23 EPS for the current fiscal year.

Insider Buying and Selling

In other 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 transaction of $151,488.00. Following 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. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Chairman Bradley Vizi sold 13,666 shares of the firm's stock in a transaction that occurred on Tuesday, April 7th. The stock was sold at an average price of $27.55, for a total transaction of $376,498.30. Following the transaction, the chairman owned 1,497,477 shares in the company, valued at approximately $41,255,491.35. This trade represents a 0.90% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 36,437 shares of company stock worth $1,068,434. Insiders own 28.00% of the company's stock.

Hedge Funds Weigh In On RCM Technologies

Hedge funds have recently modified their holdings of the business. Pacific Ridge Capital Partners LLC grew its position in shares of RCM Technologies by 40.7% during the fourth quarter. Pacific Ridge Capital Partners LLC now owns 258,231 shares of the business services provider's stock worth $5,280,000 after acquiring an additional 74,760 shares during the last quarter. LSV Asset Management grew its position in shares of RCM Technologies by 95.7% during the third quarter. LSV Asset Management now owns 67,575 shares of the business services provider's stock worth $1,794,000 after acquiring an additional 33,045 shares during the last quarter. JPMorgan Chase & Co. grew its position in shares of RCM Technologies by 331.3% during the third quarter. JPMorgan Chase & Co. now owns 10,007 shares of the business services provider's stock worth $266,000 after acquiring an additional 7,687 shares during the last quarter. Ritholtz Wealth Management grew its position in shares of RCM Technologies by 3.2% during the fourth quarter. Ritholtz Wealth Management now owns 42,724 shares of the business services provider's stock worth $873,000 after acquiring an additional 1,333 shares during the last quarter. Finally, Exchange Traded Concepts LLC grew its position in shares of RCM Technologies by 19.9% during the fourth quarter. Exchange Traded Concepts LLC now owns 12,072 shares of the business services provider's stock worth $247,000 after acquiring an additional 2,000 shares during the last quarter. 43.20% of the stock is currently owned by hedge funds and other institutional investors.

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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