Short Interest in Research Solutions Inc. (NASDAQ:RSSS) Grows By 59.2%

Key Points

• Short interest rose 59.2% to 28,954 shares as of March 31, representing about 0.1% of shares outstanding and a days-to-cover ratio of 0.6 based on average daily volume.
• Analysts' consensus is an average rating of "Hold" with an average target price of $5.00; one analyst rates the stock Buy and two rate it Hold, with recent notes from Maxim, Zacks (downgrade), and Weiss (upgrade to Hold).
• Key fundamentals: Research Solutions has a market cap of ~$77.3M and a P/E of ~19.6, recently missed quarterly estimates (EPS $0.02 vs $0.03 expected; revenue $11.79M vs $12.16M), and about 33.6% of shares are institutionally owned.

Research Solutions Inc. (NASDAQ:RSSS - Get Free Report) was the target of a large growth in short interest in March. As of March 31st, there was short interest totaling 28,954 shares, a growth of 59.2% from the March 15th total of 18,191 shares. Based on an average daily volume of 48,770 shares, the days-to-cover ratio is currently 0.6 days. Approximately 0.1% of the shares of the company are sold short.

Analyst Ratings Changes

Several analysts have weighed in on the stock. Maxim Group set a $5.00 price objective on shares of Research Solutions in a research note on Friday, February 13th. Zacks Research cut shares of Research Solutions from a "strong-buy" rating to a "hold" rating in a research note on Monday, January 12th. Finally, Weiss Ratings upgraded shares of Research Solutions from a "sell (d+)" rating to a "hold (c)" rating in a research note on Tuesday, February 17th. One investment analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $5.00.

Research Solutions Price Performance

RSSS stock opened at $2.35 on Tuesday. The company has a 50 day simple moving average of $2.40 and a 200 day simple moving average of $2.84. The stock has a market cap of $77.32 million, a price-to-earnings ratio of 19.58 and a beta of 0.77. Research Solutions has a 1 year low of $2.15 and a 1 year high of $4.12.

Research Solutions (NASDAQ:RSSS - Get Free Report) last released its quarterly earnings data on Thursday, February 12th. The company reported $0.02 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.03 by ($0.01). The company had revenue of $11.79 million for the quarter, compared to analyst estimates of $12.16 million. Research Solutions had a return on equity of 26.71% and a net margin of 7.87%. On average, equities research analysts anticipate that Research Solutions will post 0.05 EPS for the current fiscal year.

Institutional Investors Weigh In On Research Solutions

A number of institutional investors have recently added to or reduced their stakes in the business. XTX Topco Ltd bought a new stake in Research Solutions during the 4th quarter worth approximately $65,000. Rothschild Wealth LLC bought a new stake in Research Solutions during the 4th quarter worth approximately $1,049,000. Needham Investment Management LLC grew its holdings in Research Solutions by 1.5% during the 4th quarter. Needham Investment Management LLC now owns 3,145,000 shares of the company's stock worth $9,246,000 after acquiring an additional 45,000 shares during the last quarter. Jane Street Group LLC grew its holdings in Research Solutions by 148.6% during the 4th quarter. Jane Street Group LLC now owns 25,826 shares of the company's stock worth $76,000 after acquiring an additional 15,438 shares during the last quarter. Finally, Renaissance Technologies LLC grew its holdings in Research Solutions by 5.7% during the 4th quarter. Renaissance Technologies LLC now owns 218,200 shares of the company's stock worth $642,000 after acquiring an additional 11,756 shares during the last quarter. 33.60% of the stock is owned by institutional investors.

About Research Solutions

Research Solutions, Inc NASDAQ: RSSS is a provider of software and managed services that streamline access to and management of scientific, technical and medical research. The company's flagship platform automates the acquisition, licensing and delivery of journal articles, conference proceedings and other pay-walled content, enabling institutions to reduce administrative overhead and control subscription costs.

Key offerings include self-service workflows for document requests, enterprise-grade managed services for high-volume users, and analytics tools that deliver detailed reporting on spend, usage patterns and supplier performance.

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