Richtech Robotics (NASDAQ:RR) Shares Down 4.5% - Time to Sell?

Key Points

• Shares fell 4.5% to about $3.63 intraday (low $3.55) on Tuesday with ~15.05M shares traded (≈30% below average); the stock has a 50-day/200-day moving average of $4.70/$3.04 and a market cap of $544.1M.
• Analyst view is mixed: two analysts rate the stock Buy and one Sell, giving an average MarketBeat rating of Hold and an average price target of $4.50 (HC Wainwright raised its target to $6.00 while Weiss reiterated a "sell (e+)" rating).
• Poor recent fundamentals and insider selling: last quarter EPS was -$0.04 (in line) with revenue of $1.18M (below consensus) and a negative net margin of 366.21%; the COO sold 100,000 shares and insiders own 19.79% while institutional ownership is only about 0.01%.

Richtech Robotics Inc. (NASDAQ:RR - Get Free Report) was down 4.5% on Tuesday . The company traded as low as $3.55 and last traded at $3.63. Approximately 15,052,762 shares changed hands during mid-day trading, a decline of 30% from the average daily volume of 21,477,301 shares. The stock had previously closed at $3.80.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on RR shares. Weiss Ratings reiterated a "sell (e+)" rating on shares of Richtech Robotics in a research report on Wednesday, October 8th. HC Wainwright increased their price objective on shares of Richtech Robotics from $3.50 to $6.00 and gave the company a "buy" rating in a report on Friday, September 19th. Finally, Wall Street Zen cut shares of Richtech Robotics from a "hold" rating to a "sell" rating in a research report on Sunday, October 19th. Two analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. According to MarketBeat.com, Richtech Robotics currently has an average rating of "Hold" and an average price target of $4.50.

Richtech Robotics Price Performance

The stock's fifty day moving average price is $4.70 and its 200-day moving average price is $3.04. The firm has a market cap of $544.10 million, a PE ratio of -21.35 and a beta of -4.14.

Richtech Robotics (NASDAQ:RR - Get Free Report) last released its quarterly earnings data on Monday, August 11th. The company reported ($0.04) EPS for the quarter, meeting analysts' consensus estimates of ($0.04). The company had revenue of $1.18 million during the quarter, compared to the consensus estimate of $1.42 million. Richtech Robotics had a negative net margin of 366.21% and a negative return on equity of 23.85%.

Insider Activity

In other Richtech Robotics news, COO Phil Zheng sold 100,000 shares of Richtech Robotics stock in a transaction dated Monday, September 22nd. The shares were sold at an average price of $5.11, for a total transaction of $511,000.00. Following the transaction, the chief operating officer directly owned 1,000,000 shares of the company's stock, valued at $5,110,000. The trade was a 9.09% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 19.79% of the company's stock.

Hedge Funds Weigh In On Richtech Robotics

Large investors have recently made changes to their positions in the stock. Goldman Sachs Group Inc. purchased a new position in Richtech Robotics during the 1st quarter valued at about $459,000. Charles Schwab Investment Management Inc. purchased a new stake in Richtech Robotics during the first quarter worth about $40,000. Bogart Wealth LLC acquired a new stake in shares of Richtech Robotics during the second quarter worth about $117,000. Vontobel Holding Ltd. purchased a new position in shares of Richtech Robotics in the second quarter valued at approximately $143,000. Finally, Cambridge Investment Research Advisors Inc. acquired a new position in shares of Richtech Robotics in the first quarter valued at approximately $51,000. 0.01% of the stock is currently owned by institutional investors and hedge funds.

Richtech Robotics Company Profile

Richtech Robotics Inc develops, manufactures, deploys, and sells robotic solutions for automation in the service industry. The company offers indoor transport and delivery, sanitation, and food and beverage automation solutions, such as ADAM and ARM worker robots; delivery robots, including Matradee, Matradee X, Matradee L, Richie, and Robbie; and cleaning robots comprising DUST-E SX, and DUST-E MX, as well as accessories, such as bus tubs, cup holders, magnetic tray cases, smartwatches, table location systems, and tray covers.

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