RCM Technologies, Inc. (RCMT) Stock: A Strong Pick In The Service Sector Space?

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RCM Technologies, Inc. (RCMT) is making a move down in the market today. The stock, focused on the service industry, is currently trading at $3.13 after heading down -6.57% so far in today’s session. As it relates to service sector stocks, there are several aspects that have the potential to cause price movement in the market. News tends to be one of the biggest reasons for the movement. Here are the recent headlines centered around RCMT:

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May-30-19 10:20AM RCM Technologies, Inc. (NASDAQ:RCMT): What Does Its Beta Value Mean For Your Portfolio?
May-22-19 03:44PM Edited Transcript of RCMT earnings conference call or presentation 9-May-19 2:00pm GMT
May-08-19 04:05PM RCM Technologies, Inc. Announces First Quarter Results
May-07-19 09:35AM What Does RCM Technologies, Inc.’s (NASDAQ:RCMT) Balance Sheet Tell Us About It?
Apr-19-19 09:14AM Investors Who Bought RCM Technologies (NASDAQ:RCMT) Shares Five Years Ago Are Now Down 41%

However, any time investors are making a decision to invest, investors should focus on far more than news, this is especially the case in the ever incredibly complex service industry. Here’s what’s going on with RCM Technologies, Inc..

Trends That We’ve Seen From RCMT

Although a single session decline, like the move that we’re seeing from RCM Technologies, Inc. might lead to fear in some investors, a single session fall alone should not be the basis of a decision to, or not to, invest in a stock. It’s always a good idea to look at trends experienced by the stock just a single trading day. When it comes to RCMT, here are the movements that investors have seen:

  • Past 5 Trading Sessions – Over the last 5 trading sessions, RCMT has generated a change in value amounting to -3.10%.
  • Past Month – The monthly returns from RCM Technologies, Inc. has been -19.12%.
  • Quarterly – In the past three months, the stock has generated a return on investment that comes to -13.06%
  • Past Six Months – Over the previous 6 months, we have seen a performance of -16.53% from the stock.
  • Year To Date – Since the close of last year RCMT has resulted in a ROI of 0.97%.
  • Annually – Finally, over the last year, we’ve seen performance of -39.22% out of RCMT. In this period of time, the stock has sold at a high of -39.92% and a low of 23.23%.

Ratios Worth Paying Attention To

Digging into a few key ratios associated with a stock can provide prospective traders a look of how dangerous and/or potentially profitable a pick might be. Below are some of the key ratios to think about when looking at RCMT.

Short Ratio – The short ratio is a tool that is used by investors to get an understanding of the level of short interest. The higher this ratio, the more investors have a belief that the price of the stock is going to fall. Throughout the sector, strong service sector stocks tend to carry a lower short ratio. On the other hand, we also see a lot of short squeezes in the space. Nonetheless, when it comes to RCM Technologies, Inc., the stock’s short ratio comes to 0.61.

Quick & Current Ratios – The quick and current ratios are tools that are used to dive into liquidity. Essentially, they measure whether or not a company can pay for its debts as they mature based on quick assets or current assets. do have positive quick and current ratios. As far as RCMT, the quick and current ratios add up to 3.00 and 3.00 respectively.  

Book To Share Value – The book to share value ratio compares the the share price to the current book value of assets that are owned by the company. In this particular case, that ratio is 2.26.

Cash To Share Value – Finally, the cash to share value comparison compares the total cash on hand to the price of shares. In this case, the cash to share value ratio is 0.14.

Investors Tend To Follow The Big Money

One thing that I have come to understand so far in my brief time in existence is that smart investors tend to follow big money. In other words, investors that want to play it relatively safe will keep their eyes on trades made by institutions as well as insiders of the company. With that said, where is the big money in regard to RCMT? Here’s what’s going on:

  • Institutional Investors – As it stands now, institutional investors hold 50.00% of the company. On the other hand, it’s important to consider that institutional ownership has changed in the amount of 85.68% throughout the past quarter.
  • Insiders – with regard to insiders, those close to the situation currently hold 8.80% of the company. Their ownership of the company has moved 137.10% throughout the past quarter.

What Analysts Think About RCM Technologies, Inc.

While it’s rarely a good idea to blindly follow the opinions of analysts, it is a good idea to consider their analysis to validate your own before making investment decisions in the service industry. Below you’ll find the recent moves that we’ve seen from analysts when it comes to RCMT.

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Jul-13-17 Initiated The Benchmark Company Buy $7
Nov-14-08 Reiterated Boenning & Scattergood Market Outperform $6 → $3
Apr-03-08 Reiterated Boenning & Scattergood Market Outperform $10 → $8
Aug-09-07 Upgrade Boenning & Scattergood Market Perform → Market Outperform $10

What We’ve Seen In earnings results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $0.46. In the current quarter, analysts see the company producing earnings in the amount of $0.10. Over the last 5 years, RCMT has generated revenue in the amount of $3.20% with earnings coming in at 11.60%. On a quarter over quarter basis, earnings have seen movement of 32.30% and revenue has seen movement of 1.60%.

How Many Shares Of RCMT Are Available?

Traders and investors tend to have an interest in the counts of shares both available and outstanding. As it relates to RCM Technologies, Inc., there are currently 12.53M and there is a float of 11.11M. This means that out of the total of 12.53M shares of RCMT that are out there today, 11.11M are available to trade hands in the public space.

I also like to dig into the short percent. Think about it, if a high portion of the float is sold short, the overall feeling among investors is that the stock is headed for a steep decline. As far as it relates to RCMT, the short percentage of the float is currently 0.10%. Most investors would say that a concerning short percent of the float would be considered to be anything over 40%. Nonetheless, I’ve found that a short percent of the float over 26% is generally a a play that could prove to be very risky.

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