RideNow Group (NASDAQ:RDNW) Cut to Hold at Wall Street Zen

Key Points

• RideNow was downgraded by Wall Street Zen from a "buy" to a "hold," and the stock's analyst consensus is a "Reduce" rating with an average target price of $6.50.
• RideNow reported ($0.17) EPS—missing estimates by $0.01—and revenue of $256.9M below expectations, leaving the company with a negative net margin (-4.84%) and analysts projecting about -0.89 EPS for the year.
• Shares trade near $6.78 with a market cap of $260.4M and a 52-week range of $1.46–$7.19, and institutional investors own about 66.14% of the stock, with several funds recently adding modest positions.

RideNow Group (NASDAQ:RDNW - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued on Saturday.

RDNW has been the subject of a number of other research reports. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of RideNow Group in a report on Thursday, January 22nd. Robert W. Baird upped their price target on RideNow Group from $5.00 to $7.00 and gave the stock a "neutral" rating in a report on Tuesday, March 10th. Finally, DA Davidson reissued a "neutral" rating and issued a $6.00 price objective on shares of RideNow Group in a report on Tuesday, March 10th. Two investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Reduce" and an average target price of $6.50.

RideNow Group Price Performance

RideNow Group stock opened at $6.78 on Friday. The business's 50-day moving average price is $6.17 and its 200 day moving average price is $5.31. The firm has a market cap of $260.42 million, a price-to-earnings ratio of -4.88 and a beta of 1.12. RideNow Group has a 52 week low of $1.46 and a 52 week high of $7.19.

RideNow Group (NASDAQ:RDNW - Get Free Report) last released its quarterly earnings data on Monday, March 9th. The company reported ($0.17) EPS for the quarter, missing the consensus estimate of ($0.16) by ($0.01). The company had revenue of $256.90 million during the quarter, compared to analysts' expectations of $267.08 million. RideNow Group had a negative return on equity of 2,628.57% and a negative net margin of 4.84%. Equities analysts expect that RideNow Group will post -0.89 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Qube Research & Technologies Ltd acquired a new stake in shares of RideNow Group in the second quarter valued at about $52,000. Jane Street Group LLC purchased a new stake in shares of RideNow Group in the second quarter valued at approximately $71,000. City State Bank purchased a new position in RideNow Group during the fourth quarter worth approximately $26,000. Geode Capital Management LLC purchased a new stake in RideNow Group in the 4th quarter valued at $1,477,000. Finally, Hillsdale Investment Management Inc. acquired a new stake in shares of RideNow Group in the 4th quarter worth $330,000. Hedge funds and other institutional investors own 66.14% of the company's stock.

RideNow Group Company Profile

RideNow Group, Inc NASDAQ: RDNW is a leading U.S. retailer of powersports vehicles, offering both new and pre-owned inventory to enthusiasts and recreational riders. The company's dealerships carry a diverse lineup of motorcycles, all-terrain vehicles (ATVs), side-by-sides, personal watercraft and snowmobiles from major manufacturers. In addition to vehicle sales, RideNow Group provides comprehensive service and maintenance, aftermarket parts and accessories and a range of financing and protection plans tailored to powersports customers.

Founded in 2004 and headquartered in Houston, Texas, RideNow Group has grown through a combination of organic expansion and strategic acquisitions.

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