Richtech Robotics (NASDAQ:RR) Trading Down 7.7% - Here's Why

Key Points

• Shares fell 7.7% intraday to $3.72, with ~19.73 million shares traded (below the 21.49M average); the stock is under its 50‑day average ($4.66) but above its 200‑day ($3.00) and has a market cap of about $557.6M.
• Analysts are mixed: two Buy ratings and one Sell leave a MarketBeat consensus of "Hold" with a $4.50 target, while HC Wainwright raised its price objective to $6 and Wall Street Zen and Weiss issued sell views.
• Fundamentals are weak and insiders have sold: the company reported EPS of -$0.04 (meeting estimates) and revenue of $1.18M (below $1.42M est.), with a negative net margin of 366%, and COO Phil Zheng sold 100,000 shares while insiders own ~19.8%.

Richtech Robotics Inc. (NASDAQ:RR - Get Free Report)'s stock price dropped 7.7% during mid-day trading on Thursday . The stock traded as low as $3.70 and last traded at $3.72. Approximately 19,731,686 shares changed hands during trading, a decline of 8% from the average daily volume of 21,489,934 shares. The stock had previously closed at $4.03.

Analysts Set New Price Targets

RR has been the subject of several research analyst reports. Wall Street Zen lowered Richtech Robotics from a "hold" rating to a "sell" rating in a research note on Sunday, October 19th. Weiss Ratings reissued a "sell (e+)" rating on shares of Richtech Robotics in a research report on Wednesday, October 8th. Finally, HC Wainwright upped their price objective on Richtech Robotics from $3.50 to $6.00 and gave the company a "buy" rating in a research report on Friday, September 19th. Two research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $4.50.

Richtech Robotics Stock Performance

The company has a market cap of $557.61 million, a PE ratio of -21.88 and a beta of -4.13. The firm's 50 day moving average is $4.66 and its 200-day moving average is $3.00.

Richtech Robotics (NASDAQ:RR - Get Free Report) last posted its quarterly earnings results on Monday, August 11th. The company reported ($0.04) earnings per share for the quarter, meeting 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 business had revenue of $1.18 million during the quarter, compared to analysts' expectations of $1.42 million.

Insider Buying and Selling at Richtech Robotics

In related news, COO Phil Zheng sold 100,000 shares of the stock in a transaction that occurred on Monday, September 22nd. The shares were sold at an average price of $5.11, for a total transaction 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 position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 19.79% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Richtech Robotics

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RR. Geode Capital Management LLC boosted its stake in shares of 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 in the last quarter. Bank of America Corp DE boosted its holdings in shares of Richtech Robotics by 3,231.2% in the 2nd 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 during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in shares of Richtech Robotics by 4.8% in the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 862,730 shares of the company's stock valued at $1,682,000 after purchasing an additional 39,249 shares during the last quarter. OMERS ADMINISTRATION Corp acquired a new position in shares of Richtech Robotics in the 1st quarter valued at $703,000. Finally, IMC Chicago LLC purchased a new position in shares of Richtech Robotics in the 3rd quarter valued at $1,311,000. Hedge funds and other 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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