Richtech Robotics (NASDAQ:RR) Shares Gap Up - Here's Why

Key Points

• Shares gapped up — RR opened at $4.08 after a $3.74 close and last traded around $3.8050 on ~5.24 million shares, with a MarketBeat consensus target of $4.50.
• Analyst views are mixed — HC Wainwright raised its target to $6 and rated the stock "buy," while Wall Street Zen and Weiss Ratings have "sell" calls, leaving an overall consensus "hold."
• Weak fundamentals but active insider/institutional trading — latest quarter showed ($0.04) EPS (matching estimates), a revenue miss ($1.18M vs $1.42M) and a negative net margin of 366.21%; COO Phil Zheng sold 100,000 shares at $5.11 while Vanguard greatly increased its stake to ~4.61 million shares.

Richtech Robotics Inc. (NASDAQ:RR - Get Free Report) gapped up prior to trading on Monday . The stock had previously closed at $3.74, but opened at $4.08. Richtech Robotics shares last traded at $3.8050, with a volume of 5,243,023 shares changing hands.

Analysts Set New Price Targets

A number of analysts have commented on the stock. HC Wainwright lifted their target price on shares of Richtech Robotics from $3.50 to $6.00 and gave the stock a "buy" rating in a report on Friday, September 19th. Wall Street Zen cut Richtech Robotics from a "hold" rating to a "sell" rating in a report on Sunday, October 19th. Finally, Weiss Ratings restated a "sell (e+)" rating on shares of Richtech Robotics in a research report on Wednesday, October 8th. Two equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $4.50.

Richtech Robotics Stock Performance

The stock has a 50-day moving average of $4.69 and a two-hundred day moving average of $3.03. The company has a market cap of $565.83 million, a P/E ratio of -22.20 and a beta of -4.14.

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

Insiders Place Their Bets

In related news, COO Phil Zheng sold 100,000 shares of the business's stock in a transaction that occurred on Monday, September 22nd. The shares were sold at an average price of $5.11, for a total value of $511,000.00. Following the completion of the transaction, the chief operating officer directly owned 1,000,000 shares in the company, valued at $5,110,000. The trade was a 9.09% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 19.79% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Richtech Robotics

Hedge funds have recently modified their holdings of the business. Vanguard Group Inc. lifted its position in shares of Richtech Robotics by 164.0% during the 3rd quarter. Vanguard Group Inc. now owns 4,612,887 shares of the company's stock valued at $19,789,000 after buying an additional 2,865,386 shares in the last quarter. Geode Capital Management LLC raised its stake in Richtech Robotics by 128.9% during the 2nd quarter. Geode Capital Management LLC now owns 1,463,608 shares of the company's stock worth $2,854,000 after acquiring an additional 824,253 shares during the period. Bank of America Corp DE lifted its holdings in Richtech Robotics by 3,231.2% during the second quarter. Bank of America Corp DE now owns 1,248,742 shares of the company's stock valued at $2,435,000 after purchasing an additional 1,211,256 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in shares of Richtech Robotics by 4.8% in the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 862,730 shares of the company's stock worth $1,682,000 after purchasing an additional 39,249 shares during the period. Finally, OMERS ADMINISTRATION Corp purchased a new stake in shares of Richtech Robotics in the first quarter worth $703,000. Institutional investors own 0.01% of the company's stock.

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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