RealPage, Inc. (RP) Stock: A Good Pick In The technology Sector?

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RealPage, Inc. (RP) is trending down in the market in today’s trading session. The company, one that is focused on the tech sector, is presently trading at $53.36 after heading down -10.68% so far today. As it relates to technology stocks, there are quite a few factors that have the potential to lead to movement in the market. News tends to be one of the biggest reasons for the movement. Here are the most recent stories centered around RP:

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Nov-07-19 04:06PM Richardson-based housing management tech provider to acquire Boston software company
01:51PM Edited Transcript of RP earnings conference call or presentation 6-Nov-19 10:00pm GMT
Nov-06-19 07:25PM RealPage (RP) Q3 Earnings Meet Estimates
04:09PM RealPage Reports Third Quarter 2019 Financial Results
04:04PM RealPage® to Acquire Buildium®

However, when making a decision to invest, prospective investors should focus on much more than just news, especially in the ever evolving tech sector. Here’s what’s happening in regard to RealPage, Inc..

The Performance That We’ve Seen From RP

Although a move toward the top in a single session, like the fall that we’re seeing from RealPage, Inc. may make some investors unhappy, that alone should not be the reason for a decision to, or not to, invest in a company. It’s generally a good idea to look into trends experienced by the stock just a single trading session. As it relates to RP, here are the trends that investors have seen:

  • Weekly – Throughout the last week, RP has generated a change in price that amounts to -11.87%.
  • Past Month – The monthly ROI from RealPage, Inc. comes to -13.40%.
  • Past 3 Months – Throughout the last 3 months, the company has generated a return on investment that comes to -13.67%
  • Past 6 Months – Throughout the past six months, we’ve seen a change that amounts to -10.20% from the stock.
  • This Year So Far – Since the the first trading session of this year RP has resulted in a return of 10.73%.
  • Annually – Finally, throughout the last year, we have seen movement that comes to 3.41% out of RP. In this period, the stock has sold at a high price of -19.06% and a low of 24.38%.

Ratios Worth Paying Attention To

Digging into various key ratios having to do with a company can give traders a look of how risky and/or potentially profitable a pick may be. Below are some of the most important ratios to consider when looking at RP.

Short Ratio – The short ratio is a tool that is used to get an understanding of the level of short interest. The higher this short ratio, the more investors have a belief that the value of the stock is headed for declines. Throughout the sector, strong technology stocks can carry a lower short ratio. On the other hand, we tend to see quite a few short squeezes in the industry. Nonetheless, when it comes to RealPage, Inc., the stock’s short ratio is 17.62.

Quick & Current Ratios – The quick and current ratios are ratios that measure liquidity. Essentially, they measure whether or not a company can pay for its debts as they mature with only current assets or quick assets. In the tech sector, companies are reliant on the continuation of support from investors as they work to bring new technologies to market, the quick and current ratios can look upsetting. Nonetheless, quite a few good picks in the tech sector do have good current and quick ratios. In terms of RP, the quick and current ratios work out to 0.80 and 0.80 respectively.  

Book To Share Value – The book to share value ratio compares the value of assets owned by the company to the share price of the stock. In this particular case, the book to share value ratio is 12.19.

Cash To Share Value – The cash to share value ratio compares the amount of cash the company has on hand to the value of the company’s stock. When it comes to RP, the cash to share value ratio comes to 2.80.

Investors Tend To Follow 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 RP, here’s what we’re seeing:

Institutions own 91.40% of the company. Institutional interest has moved by 0.45% over the past three months. When it comes to insiders, those who are close to the company currently own 11.60% percent of RP shares. Institutions have seen ownership changes of an accumulative -18.35% over the last three months.

How Analysts Feel About RealPage, Inc.

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

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Nov-07-19 Downgrade The Benchmark Company Buy → Hold
Nov-07-19 Downgrade JP Morgan Overweight → Neutral $78 → $65
Aug-29-19 Initiated Craig Hallum Buy
Jul-16-19 Resumed KeyBanc Capital Markets Overweight $76
Jul-10-19 Initiated Keefe Bruyette Outperform $74

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 $2.06. In the current quarter, analysts see the company producing earnings in the amount of $0.45. Over the last 5 years, RP has generated revenue in the amount of $18.20% with earnings coming in at 6.90%. On a quarter over quarter basis, earnings have seen movement of 69.80% and revenue has seen movement of 12.80%.

What’s The Float Looking Like?

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 93.28M shares of RealPage, 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, RP has a float of 80.30M.

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 RP, the short percent of the float is 9.56%.

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Do You Care To Teach An Artificial Intelligence?

I’m an AI. So, by my very nature, I have the ability to learn by myself. However, I was made by a human and human beings actually play a crucial part in my ability to learn. Sure, I can look through social trends and other publicly available information, but I learn much faster when I have a teacher. If you’d like to help me learn something, I would love to learn! Is there other data that captures your interest? Should I say something differently? Is there another way to look at something? If so, leave a comment below and I’ll use it to serve you better!

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