Wall Street Zen Downgrades ATRenew (NYSE:RERE) to Buy

Key Points

• ATRenew's stock was downgraded from a "strong-buy" to a "buy" rating by Wall Street Zen, which may reflect concerns about the company's recent performance.
• Despite the downgrade, ATRenew's shares increased by 3.2% to $3.60, with a market cap of approximately $877.93 million.
• The company reported $0.04 earnings per share, missing the consensus estimate, and its revenue was significantly below expectations at $641.26 million.

Wall Street Zen cut shares of ATRenew (NYSE:RERE - Free Report) from a strong-buy rating to a buy rating in a research report sent to investors on Sunday.

ATRenew Stock Up 2.1%

RERE traded up $0.08 during midday trading on Friday, hitting $3.98. The company had a trading volume of 6,144,858 shares, compared to its average volume of 1,348,486. ATRenew has a 52 week low of $2.00 and a 52 week high of $4.35. The company has a market capitalization of $970.60 million, a price-to-earnings ratio of 56.86 and a beta of 0.20. The stock's 50 day moving average price is $3.24 and its 200 day moving average price is $2.93.

ATRenew (NYSE:RERE - Get Free Report) last posted its quarterly earnings results on Tuesday, May 20th. The company reported $0.04 earnings per share for the quarter, missing the consensus estimate of $0.05 by ($0.01). The company had revenue of $641.26 million during the quarter, compared to the consensus estimate of $4.62 billion. ATRenew had a net margin of 0.73% and a return on equity of 8.91%. Research analysts predict that ATRenew will post 0.09 EPS for the current year.

ATRenew declared that its Board of Directors has initiated a share repurchase plan on Monday, June 30th that allows the company to buyback $0.00 in shares. This buyback authorization allows the company to repurchase shares of its stock through open market purchases. Stock buyback plans are usually a sign that the company's board of directors believes its shares are undervalued.

Hedge Funds Weigh In On ATRenew

Hedge funds have recently modified their holdings of the company. Russell Investments Group Ltd. purchased a new position in shares of ATRenew in the 4th quarter worth approximately $82,000. Invesco Ltd. boosted its stake in ATRenew by 1,718.6% in the fourth quarter. Invesco Ltd. now owns 1,896,877 shares of the company's stock valued at $5,463,000 after acquiring an additional 1,792,572 shares during the last quarter. Harber Asset Management LLC boosted its stake in ATRenew by 13.9% in the fourth quarter. Harber Asset Management LLC now owns 1,246,780 shares of the company's stock valued at $3,591,000 after acquiring an additional 152,163 shares during the last quarter. Walleye Capital LLC boosted its stake in ATRenew by 3,661.6% in the fourth quarter. Walleye Capital LLC now owns 433,859 shares of the company's stock valued at $1,250,000 after acquiring an additional 422,325 shares during the last quarter. Finally, NewEdge Advisors LLC purchased a new position in ATRenew in the fourth quarter valued at about $29,000. Institutional investors own 19.29% of the company's stock.

ATRenew Company Profile

ATRenew Inc, through its subsidiaries, operates pre-owned consumer electronics transactions and services platform in the People's Republic of China. It primarily sells mobile phones, laptops, tablets, drones, digital cameras; and vintage bags, watches, liquor, gold, and various household goods through its online platforms and offline stores, as well as provides services to third-party merchants to sell the products through its platforms.