RigNet Inc. [RNET] is -46.52% lower this YTD. Is it still time to buy?

RigNet Inc. [NASDAQ: RNET] traded at a high on 08/11/20, posting a 17.67 gain after which it closed the day’ session at $3.53. The company report on August 6, 2020 that RigNet Announces Second Quarter 2020 Earnings Results.

RigNet, Inc. (NASDAQ: RNET, the “Company”), a leading provider of ultra-secure, intelligent networking solutions and specialized applications, announced its results for the quarter ended June 30, 2020.

“RigNet’s team delivered strong second quarter results despite the challenging oil and gas dynamics that impacted our MCS business,” said Steven Pickett, Chief Executive Officer and President. “While total revenue declined, the team’s discipline around costs controls and continued contributions from our growing Apps & IoT business contributed to an increase in Adjusted EBITDA. During the quarter, offshore communications generally performed ahead of our expectations while onshore declined as anticipated due to reduced activity in the shale basins. Both Apps & IoT and SI continue to generate opportunities, though as we have previously discussed, we are seeing some delays in converting the opportunities into revenue as our customers’ decision-making processes have generally slowed. Looking ahead, we are focused on capitalizing on our available opportunities across all of our segments, further reducing costs, and ensuring we continue to deliver the industry-leading quality of service for which we’re known.” .

The results of the trading session contributed to over 1807646 shares changing hands. Over the past one week, the price volatility of RigNet Inc. stands at 13.71% while the volatility over the past one month is 15.48%.

The market cap for RNET stock reached $70.49 million, with 20.08 million shares outstanding and 14.83 million shares in the current float. Compared to the average trading volume of 1.59M shares, RNET reached a trading volume of 1807646 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about RigNet Inc. [RNET]?

National Securities have made an estimate for RigNet Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on April 17, 2020. The new note on the price target was released on October 16, 2019, representing the official price target for RigNet Inc. stock. Previously, the target price had yet another raise from $20 to $24, while Maxim Group kept a Buy rating on RNET stock.

The Average True Range (ATR) for RigNet Inc. is set at 0.35, with the Price to Sales ratio for RNET stock in the period of the last 12 months amounting to 0.29. The Price to Book ratio for the last quarter was 4.41, with the Price to Cash per share for the same quarter was set at 0.68.

How has RNET stock performed recently?

RigNet Inc. [RNET] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 47.70. With this latest performance, RNET shares gained by 87.77% in over the last four-week period, additionally sinking by -5.87% over the last 6 months – not to mention a drop of -52.36% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for RNET stock in for the last two-week period is set at 69.79, with the RSI for the last a single of trading hit 77.17, and the three-weeks RSI is set at 66.76 for RigNet Inc. [RNET]. The present Moving Average for the last 50 days of trading for this stock 2.19, while it was recorded at 2.96 for the last single week of trading, and 3.35 for the last 200 days.

RigNet Inc. [RNET]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and RigNet Inc. [RNET] shares currently have an operating margin of +0.53 and a Gross Margin at +25.54. RigNet Inc.’s Net Margin is presently recorded at -7.89.

Return on Total Capital for RNET is now 0.87, given the latest momentum, and Return on Invested Capital for the company is -13.78. Return on Equity for this stock declined to -37.32, with Return on Assets sitting at -7.51. When it comes to the capital structure of this company, RigNet Inc. [RNET] has a Total Debt to Total Equity ratio set at 248.57. Additionally, RNET Total Debt to Total Capital is recorded at 71.31, with Total Debt to Total Assets ending up at 46.27. Long-Term Debt to Equity for the company is recorded at 221.01, with the Long-Term Debt to Total Capital now at 63.40.

Reflecting on the efficiency of the workforce at the company, RigNet Inc. [RNET] managed to generate an average of -$30,650 per employee. Receivables Turnover for the company is 3.14 with a Total Asset Turnover recorded at a value of 0.95.RigNet Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.30 and a Current Ratio set at 1.50.

Earnings analysis for RigNet Inc. [RNET]

With the latest financial reports released by the company, RigNet Inc. posted 0.05/share EPS, while the average EPS was predicted by analysts to be reported at -0.02/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 350.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for RNET. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for RigNet Inc. go to 3.00%.

Insider trade positions for RigNet Inc. [RNET]

There are presently around $64 million, or 89.80% of RNET stock, in the hands of institutional investors. The top three institutional holders of RNET stocks are: KOHLBERG KRAVIS ROBERTS & CO. L.P. with ownership of 5,000,254, which is approximately 0% of the company’s market cap and around 3.00% of the total institutional ownership; ARROWMARK COLORADO HOLDINGS LLC, holding 2,804,951 shares of the stock with an approximate value of $9.9 million in RNET stocks shares; and FMR LLC, currently with $9.66 million in RNET stock with ownership of nearly -7.123% of the company’s market capitalization.

Positions in RigNet Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 15 institutional holders increased their position in RigNet Inc. [NASDAQ:RNET] by around 1,409,171 shares. Additionally, 32 investors decreased positions by around 678,896 shares, while 9 investors held positions by with 16,177,426 shares. The mentioned changes placed institutional holdings at 18,265,493 shares, according to the latest SEC report filing. RNET stock had 2 new institutional investments in for a total of 17,004 shares, while 13 institutional investors sold positions of 137,708 shares during the same period.

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