Renren Inc. (RENN) Stock: A Good Pick In The Tech Industry?

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Renren Inc. (RENN) is working its way for to the top in the market today. The company, one that is focused on the tech industry, is currently trading at $1.77 after climbing 18.00% so far in today’s session. When it comes to tech stocks, there are quite a few factors that have the potential to lead to price movement in the market. One of the most common is news. Here are the recent headlines surrounding RENN:

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Apr-01-19 06:00AM CM Seven Star Announces date for Annual Meeting of Shareholders
Mar-29-19 07:30AM Renren Announces Unaudited Third Quarter 2018 Financial Results
Mar-25-19 06:00PM Renren Appoints Michael McGowan as Vice President of Sales for Chime Technologies
Mar-08-19 08:05AM Social Networking, Used Cars and SaaS are driving Renren’s Growth and One of These Segments is Huge
Mar-06-19 02:45PM Four Tech Stocks To Watch on Wednesday

Nonetheless, any time investors are making an investing decision, prospective investors should look at much more than news, especially in the ever changing tech sector. Here’s what’s happing when it comes to Renren Inc..

The Performance That RENN Investors Have Experienced

Although a gain in a single session, like what we’re seeing from Renren Inc. might make some investors jump for joy, a single session gain alone should not be the reason for a decision to, or not to, buy a company’s stock. It is always smart to take a look at trends experienced by the stock further out than a single session. In the case of RENN, below are the movements that we have seen:

  • Past Seven Days – Throughout the last seven days, RENN has produced a change in value amounting to 22.07%.
  • Past Month – The monthly performance from Renren Inc. works out to 16.45%.
  • Past Three Months – Over the last 3 months, the stock has produced a return on investment that comes to 13.46%
  • Bi-Annually – Throughout the last 6 months, we’ve seen a performance that equates to 21.23% from the stock.
  • YTD – Since the the first trading session of this year RENN has generated a return of 14.94%.
  • Full Year – Finally, over the past year, we’ve seen movement amounting to 89.62% from RENN. Throughout this period, the stock has sold at a high of -44.51% and a low price of 133.01%.

Key Ratios

Digging into various key ratios associated with a stock can provide prospective traders a view of how risky and/or potentially profitable a pick might be. Here are a few of the most important ratios to consider when digging into RENN.

Short Ratio – The short ratio is a tool that’s used by traders 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 stock is going to fall. Across the sector, strong tech stocks tend to have a lower short ratio. However, we also see a lot of short squeezes in the sector. Nonetheless, in relation to Renren Inc., it’s short ratio amounts to 2.76.

Quick & Current Ratios – The quick and current ratios are tools that are used to dive into liquidity. Basically, they measure whether or not a company can pay for its debts as they mature with only quick assets or current assets. In the technology space, several companies are heavily reliant on continued investor support as they work to bring new technologies to market, the quick and current ratios can seem upsetting. However, several better companies in the technology sector come with good current and quick ratios. In terms of RENN, the quick and current ratios total up to 0.90 and 1.50 respectively.  

Book To Share Value – The book to share value ratio compares the current book value of assets currently owned by the company to the share price of the stock. In this particular case, the book to share value ratio is 2.86.

Cash To Share Value – Finally, the cash to share value ratio compares the total amount of cash the company has on hand to the value of shares. As it relates to RENN, the cash to share value is 0.

Show Me The Big Money

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in RENN, here’s what we’re seeing:

  • Institutions – Currently, institutions own 23.10% of RENN. However, it’s important to note that the ownership held by institutions has moved in the amount of 0 in the last 3 months.
  • Investors On The Inside – When it comes to insiders, those close to the company currently hold 50.75% of Renren Inc.. Insider ownership of the company has seen a move of 0.00% in the last 3 months.

Analyst Opinions Of Renren Inc.

While it’s rarely a smart idea to avoid doing your due diligence and blindly following the opinions of analysts, it is a good idea to consider their analysis when validating your own opinions when it comes to making an investment decision in the technology space. Here are the most recent moves that we’ve seen from analysts with regard to RENN.

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May-15-13 Downgrade Oppenheimer Outperform → Perform
May-31-12 Upgrade Maxim Group Sell → Hold
Feb-03-12 Downgrade Maxim Group Hold → Sell $4.50
Dec-15-11 Initiated Brean Murray Hold
Sep-23-11 Upgrade Maxim Group Sell → Hold

What We’ve Seen In Financial Results

What have ween seen from RENN in terms of financial results?Here’s the information:

  • Analyst Expectations – As it stands at the moment, analysts have expectations that Renren Inc. will generate EPS of -0.55, with 0 to be announced in the next financial report. Although this data isn’t associated with earnings, because we are chatting on the topic of analysts, Renren Inc. is currently rated a 0 on a scale from 1 to 5 where 1 is the poorest Wall Street analyst grade and 5 is the best.
  • 5-Year Sales – In the last half decade, Renren Inc. has reported a change in sales volume that adds up to 5.50%. Earnings per diluted share in the last half decade have seen movement in the amount of -31.20%.
  • Q/Q – In terms of quarter over quarter earnings data, or Q/Q data as it is commonly represented in the world of humans, RENN has generated a change in earnings that comes to a total of -107.00%. Renren Inc. has also moved the needle with regard to sales that adds up to 581.80%.

What’s Going On With 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 69.93M shares of Renren 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, RENN has a float of 1.90M.

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 RENN, the short percent of the float is 43.70%.

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