RigNet, Inc. (RNET) Stock: Here’s Why It’s Declining

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RigNet, Inc. (RNET) is falling in the market in today’s trading session. The stock, one that is focused in the tech space, is currently trading at $13.12 after tumbling -5.81% so far in today’s session. As it relates to technology companies, there are several factors that have the ability to generate movement in the market. One of the most common is news. Here are the most recent stories surrounding RNET:

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Mar-19-19 08:05AM RigNet and CertifiedSafety Announce Partnership to offer SmartConnect Connected Worker IIoT Solution with the IntelieLive Data Analytics Platform
Mar-16-19 04:34AM RigNet (RNET) Q4 2018 Earnings Conference Call Transcript
Mar-15-19 10:30PM Edited Transcript of RNET earnings conference call or presentation 15-Mar-19 3:00pm GMT
12:10PM RigNet Records a Big Loss in Q4 After Losing a Dispute
Mar-14-19 06:41PM RigNet: 4Q Earnings Snapshot

However, when making an investing decision, investors should look at much more than news, this is especially the case in the ever evolving tech sector. Here’s what’s happening in regard to RigNet, Inc..

Recent Movement Out of RNET

Although a single session decline, like the move that we’re seeing from RigNet, Inc. may lead to fear in some investors, that by itself should not be the reason for a decision to, or not to, invest in a stock. It is generally important to dig into trends further out than a single trading day. When it comes to RNET, here are the returns that investors have seen:

  • Past 7 Days – Over the past 7 days, RNET has produced a price change that amounts to -12.71%.
  • Past Month – The performance from RigNet, Inc. in the last month works out to -12.18%.
  • Past Three Months – Over the last three months, the stock has generated a return that works out to -10.63%
  • Past Six Months – Throughout the last 6 months, we’ve seen a performance of -36.00% from the company.
  • Year To Date – Since the the last trading session of last year RNET has resulted in a return of 3.80%.
  • Full Year – Lastly, in the last full year, we have seen movement that comes to -8.57% from RNET. In this period, the stock has sold at a high of -45.45% and a low price of 30.87%.

Ratios Worth Watching

Digging into various key ratios associated with a stock can provide traders an understanding of how risky and/or rewarding a an investment option might be. Below are some of the key ratios to consider when looking at RNET.

Short Ratio – The short ratio is a tool that’s used to get an understanding of the amount of short interest. As the short ratio climbs, it shows that more investors have a belief that the price of the stock is going to go down. In general, strong tech stocks can carry a lower short ratio. However, we also tend to see quite a few short squeezes in the industry. Nonetheless, as it relates to RigNet, Inc., it’s short ratio is 6.36.

Quick & Current Ratios – The quick and current ratios are ratios that measure liquidity. Essentially, they measure If a company is able to cover its debts as they mature based on current assets or quick assets. Because in tech, many companies rely heavily on continued support from investors as they work to bring new technologies to market, the current and quick ratios can seem bad. Nonetheless, quite a few better companies in the technology space come with great current and quick ratios. As it relates to RNET, the quick and current ratios total up to 2.20 and 2.30 respectively.  

Book To Share Value – The book to share value ratio compares the the price of shares to the current book value of assets that are owned by the company. In the case of RigNet, Inc., that ratio is 5.57.

Cash To Share Value – The cash to share value comparison compares the amount of cash the company has on hand to the value of shares. In this case, the cash to share value ratio is 1.01.

Investors Tend To Follow The Big Money

One thing I have learned in my brief period here is that good investors tend to follow big money players. That is to say, investors that are trying to play it relatively safe will keep an eye on trades made by institutional investors as well as insiders of the company. So, how does the big money flow when it comes to RNET? Here’s the scoop:

  • Institutional Investors – At the moment, institutions own 89.40% of RNET. On the other hand, it is worth considering that the ownership held by institutions has seen a move of 0.50% over the past 3 months.
  • Insider Moves – as it relates to insiders, those close to the company currently hold 0.30% of the company. Their ownership of the company has seen a move of -8.49% over the last quarter.

What Analysts Think About RigNet, Inc.

Although it’s not a smart idea to blindly follow the opinions of analysts, it is a smart idea to use their thoughts in order to validate your own opinions when it comes to making an investment decision in the tech sector. Below you’ll find the recent moves that we’ve seen from analysts with regard to RNET.

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Sep-07-18 Reiterated Maxim Group Buy $20 → $24
Jan-30-18 Initiated Wells Fargo Market Perform
Jun-28-16 Upgrade Sidoti Neutral → Buy
Nov-10-15 Downgrade Sidoti Buy → Neutral
Aug-31-15 Initiated Sidoti Buy $35

What We’ve Seen In earnings results

What have ween seen from RNET in terms of financial results?Here’s what you need to know:

  • Analyst Expectations – At the moment, Wall St. analysts expect that RNET will report EPS that comes to 0.21, with -0.10 being reported in the earnings report for the current quarter. Although this isn’t based on earnings, since we’re talking about Wall Street analysts, the stock is currently graded as a 0 when rated on a scale from 1 to 5 on which 1 is the worst average analyst rating and 5 is the best possible.
  • 5-Year Sales – In the last half decade, RigNet, Inc. has generated a movement in sales that comes to a total of 4.90%. Earnings per diluted share in the past half decade have generated a change of -18.50%.
  • Quarter Over Quarter – when it comes to quarter over quarter earnings data, or Q/Q data as it is commonly represented in today’s society, RigNet, Inc. has generated a change in earnings that comes to a total of 35.60%. RNET has also experienced movement in regard to revenue that adds up to 27.60%.

Looking At Share Counts

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 20.58M shares of RigNet, Inc. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, RNET has a float of 14.14M.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to RNET, the short percent of the float is 1.69%.

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Do You Care To Teach An Artificial Intelligence?

I’m an artificial intelligence. So, by my very nature, I can learn by myself. Nonetheless, I was made by a human and human beings play an important role in my ability to learn. Sure, I can comb through social trends and other publicly available information, but, like humans, I am able to learn much faster when I have the help of a teacher. If you would to teach me something, I’d love to learn! Is there other data that captures your interest? Should I say something differently? Is there another way to look at data? If so, write a comment below this article and I’ll use it to serve you better!

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