Wall Street Zen Upgrades RCM Technologies (NASDAQ:RCMT) to Buy

Key Points

• Wall Street Zen upgraded RCM Technologies (NASDAQ:RCMT) from hold to buy, though the broader analyst consensus still sits at Hold with a $36.00 price target.
• The company recently reported better-than-expected quarterly results, with EPS of $0.80 versus estimates of $0.58 and revenue of $86.48 million topping forecasts.
• RCM Technologies shares opened at $28.50; the stock has traded between $17.26 and $32.50 over the past year, while insiders and institutions have both been active in the name.

RCM Technologies (NASDAQ:RCMT - Get Free Report) was upgraded by analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued to investors on Saturday.

Several other research analysts also recently issued reports on RCMT. Benchmark upped their price target on shares of RCM Technologies from $32.00 to $36.00 and gave the stock a "buy" rating in a report on Wednesday, April 8th. Weiss Ratings reissued a "hold (c)" rating on shares of RCM Technologies in a report on Friday, March 27th. Finally, Zacks Research lowered RCM Technologies from a "strong-buy" rating to a "hold" rating in a research report on Friday, June 5th. One research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $36.00.

RCM Technologies Price Performance

Shares of NASDAQ RCMT opened at $28.50 on Friday. The company has a market cap of $202.06 million, a price-to-earnings ratio of 13.44 and a beta of 0.29. The company has a current ratio of 1.92, a quick ratio of 1.92 and a debt-to-equity ratio of 0.65. RCM Technologies has a 12 month low of $17.26 and a 12 month high of $32.50. The stock has a 50-day moving average price of $26.37 and a two-hundred day moving average price of $22.83.

RCM Technologies (NASDAQ:RCMT - Get Free Report) last posted its quarterly earnings results on Friday, April 3rd. The business services provider reported $0.80 earnings per share for the quarter, beating analysts' consensus estimates of $0.58 by $0.22. The company had revenue of $86.48 million for the quarter, compared to the consensus estimate of $84.46 million. RCM Technologies had a net margin of 5.03% and a return on equity of 37.76%. As a group, analysts forecast that RCM Technologies will post 2.23 earnings per share for the current fiscal year.

Insider Buying and Selling

In other RCM Technologies news, CFO Kevin D. Miller sold 4,734 shares of the business's stock in a transaction that occurred on Monday, April 27th. The shares were sold at an average price of $32.00, for a total transaction of $151,488.00. Following the sale, the chief financial officer directly owned 439,066 shares of the company's stock, valued at $14,050,112. The trade was a 1.07% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Chairman Bradley Vizi sold 13,666 shares of the company's stock in a transaction that occurred on Tuesday, April 7th. The shares were sold at an average price of $27.55, for a total transaction of $376,498.30. Following the completion of the transaction, the chairman owned 1,497,477 shares of the company's stock, valued at approximately $41,255,491.35. This trade represents a 0.90% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 36,437 shares of company stock valued at $1,068,434. 28.00% of the stock is owned by company insiders.

Institutional Trading of RCM Technologies

Several institutional investors have recently modified their holdings of RCMT. Renaissance Technologies LLC increased its holdings in RCM Technologies by 3.6% in the first quarter. Renaissance Technologies LLC now owns 434,877 shares of the business services provider's stock valued at $8,324,000 after purchasing an additional 15,304 shares during the period. Vanguard Group Inc. lifted its holdings in RCM Technologies by 3.1% during the 3rd quarter. Vanguard Group Inc. now owns 279,889 shares of the business services provider's stock worth $7,431,000 after buying an additional 8,532 shares during the period. Pacific Ridge Capital Partners LLC lifted its holdings in RCM Technologies by 40.7% during the 4th quarter. Pacific Ridge Capital Partners LLC now owns 258,231 shares of the business services provider's stock worth $5,280,000 after buying an additional 74,760 shares during the period. Dimensional Fund Advisors LP lifted its holdings in RCM Technologies by 1.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 169,945 shares of the business services provider's stock worth $3,253,000 after buying an additional 1,774 shares during the period. Finally, Punch & Associates Investment Management Inc. grew its position in shares of RCM Technologies by 12.8% in the 1st quarter. Punch & Associates Investment Management Inc. now owns 153,511 shares of the business services provider's stock valued at $2,938,000 after buying an additional 17,433 shares during the last quarter. Institutional investors own 43.20% of the company's stock.

RCM Technologies Company Profile

RCM Technologies, Inc NASDAQ: RCMT is an information technology consulting firm that specializes in delivering secure, enterprise-level technology solutions. The company's core offerings include IT infrastructure design and integration, data center modernization, cloud migration and management, cybersecurity services, and digital collaboration platforms. RCM Technologies serves clients across federal and commercial markets, tailoring its services to meet the strict security and compliance requirements of government agencies as well as the performance and scalability needs of private-sector organizations.

Founded in the mid-1980s and headquartered in Dresher, Pennsylvania, RCM Technologies has built a reputation for end-to-end project delivery, from initial assessment and design through implementation and ongoing managed support.

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