Richtech Robotics (NASDAQ:RR) Stock Price Down 10.1% - Should You Sell?

Key Points

• Richtech Robotics Inc. (NASDAQ:RR) saw a significant decline in stock price, trading down 10.1% to a low of $4.69 amid heavy trading volume.
• Analysts have mixed views on the stock, with Weiss Ratings reiterating a "sell" rating, while HC Wainwright upgraded their price target and issued a "buy" rating.
• The company reported a negative net margin of 366.21% and fell short of revenue expectations, generating only $1.18 million against a consensus estimate of $1.42 million.

Richtech Robotics Inc. (NASDAQ:RR - Get Free Report) traded down 10.1% on Wednesday . The stock traded as low as $4.69 and last traded at $5.06. 42,205,533 shares changed hands during mid-day trading, an increase of 100% from the average session volume of 21,130,906 shares. The stock had previously closed at $5.63.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on the stock. Weiss Ratings restated a "sell (e+)" rating on shares of Richtech Robotics in a report on Wednesday, October 8th. Wall Street Zen lowered shares of Richtech Robotics from a "hold" rating to a "sell" rating in a report on Sunday. Finally, 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. Two research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. According to MarketBeat, the company has an average rating of "Hold" and a consensus price target of $4.50.

Richtech Robotics Price Performance

The company's 50-day moving average price is $4.08 and its 200-day moving average price is $2.75. The company has a market cap of $758.46 million, a P/E ratio of -29.76 and a beta of -4.14.

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

Insiders Place Their Bets

In related news, COO Phil Zheng sold 100,000 shares of the firm's stock in a transaction 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 owned 1,000,000 shares of the company's stock, valued at approximately $5,110,000. This trade represents a 9.09% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 25.70% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Sovereign Financial Group Inc. bought a new position in shares of Richtech Robotics in the 3rd quarter valued at about $43,000. Brookstone Capital Management bought a new position in shares of Richtech Robotics in the 3rd quarter valued at about $46,000. Private Advisor Group LLC bought a new position in shares of Richtech Robotics in the 1st quarter valued at about $25,000. ProShare Advisors LLC bought a new position in shares of Richtech Robotics in the 2nd quarter valued at about $28,000. Finally, Delos Wealth Advisors LLC bought a new position in shares of Richtech Robotics in the 2nd quarter valued at about $29,000. 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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