Market Analysts see Ralph Lauren Corporation [RL] falling to $85. Time to buy?

Ralph Lauren Corporation [NYSE: RL] gained 0.76% or 0.53 points to close at $70.66 with a heavy trading volume of 1034636 shares. The company report on August 13, 2020 that Ralph Lauren Corporation Announces Investment in Leading Sustainable Material Science Startup Natural Fiber Welding.

Investment to help enable product development using plant-based, upcycled materials as well as create and scale a new industry standard for natural fiber recycling.

Ralph Lauren Corporation (NYSE:RL) today announced a minority investment in Natural Fiber Welding, Inc. (NFW), a leading sustainable material science startup that has revolutionized the reuse of natural fibers – such as cotton waste – into patented, high-performance materials. As a part of the investment, Ralph Lauren will help scale NFW’s patented process and develop first-of-its-kind performance apparel made from natural, sustainable materials.

It opened the trading session at $69.44, the shares rose to $71.27 and dropped to $68.05, the range by which the price of stock traded the whole day. The daily chart for RL points out that the company has recorded -42.01% loss over the past six months. However, it is still -18.12% lower than its most recent low trading price.

If we look at the average trading volume of 1.29M shares, RL reached to a volume of 1034636 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Ralph Lauren Corporation [RL]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for RL shares is $85.08 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on RL stock is a recommendation set at 2.50. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Telsey Advisory Group have made an estimate for Ralph Lauren Corporation shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on August 05, 2020. While these analysts kept the previous recommendation, Telsey Advisory Group raised their target price from $88 to $95. The new note on the price target was released on May 28, 2020, representing the official price target for Ralph Lauren Corporation stock. Previously, the target price had yet another drop from $92 to $88, while Telsey Advisory Group kept a Outperform rating on RL stock. On May 07, 2020, analysts decreased their price target for RL shares from 88 to 76.

The Average True Range (ATR) for Ralph Lauren Corporation is set at 2.86, with the Price to Sales ratio for RL stock in the period of the last 12 months amounting to 0.98. The Price to Book ratio for the last quarter was 2.02, with the Price to Cash per share for the same quarter was set at 37.39. Price to Free Cash Flow for RL in the course of the last twelve months was 128.71 with Quick ratio for the last quarter at 2.10.

Trading performance analysis for RL stock

Ralph Lauren Corporation [RL] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 7.13. With this latest performance, RL shares dropped by -5.28% in over the last four-week period, additionally sinking by -42.01% over the last 6 months – not to mention a drop of -16.94% 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 RL stock in for the last two-week period is set at 50.67, with the RSI for the last a single of trading hit 54.48, and the three-weeks RSI is set at 49.39 for Ralph Lauren Corporation [RL]. The present Moving Average for the last 50 days of trading for this stock 72.31, while it was recorded at 69.90 for the last single week of trading, and 90.82 for the last 200 days.

Ralph Lauren Corporation [RL]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Ralph Lauren Corporation [RL] shares currently have an operating margin of +6.35 and a Gross Margin at +54.53. Ralph Lauren Corporation’s Net Margin is presently recorded at +6.24.

Return on Total Capital for RL is now 7.72, given the latest momentum, and Return on Invested Capital for the company is 8.51. Return on Equity for this stock inclined to 12.85, with Return on Assets sitting at 5.81. When it comes to the capital structure of this company, Ralph Lauren Corporation [RL] has a Total Debt to Total Equity ratio set at 119.82. Additionally, RL Total Debt to Total Capital is recorded at 54.51, with Total Debt to Total Assets ending up at 44.33. Long-Term Debt to Equity for the company is recorded at 79.99, with the Long-Term Debt to Total Capital now at 36.39.

Reflecting on the efficiency of the workforce at the company, Ralph Lauren Corporation [RL] managed to generate an average of $15,434 per employee. Receivables Turnover for the company is 12.05 with a Total Asset Turnover recorded at a value of 0.93.Ralph Lauren Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.10 and a Current Ratio set at 2.60.

Ralph Lauren Corporation [RL]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Ralph Lauren Corporation posted 2.55/share EPS, while the average EPS was predicted by analysts to be reported at 2.39/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 6.70%. 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 RL. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Ralph Lauren Corporation go to 1.65%.

An analysis of insider ownership at Ralph Lauren Corporation [RL]

There are presently around $3,411 million, in the hands of institutional investors. The top three institutional holders of RL stocks are: VANGUARD GROUP INC with ownership of 5,065,774, which is approximately -6.666% of the company’s market cap and around 2.60% of the total institutional ownership; BLACKROCK INC., holding 4,674,281 shares of the stock with an approximate value of $330.29 million in RL stocks shares; and RENAISSANCE TECHNOLOGIES LLC, currently with $266.37 million in RL stock with ownership of nearly 1.094% of the company’s market capitalization.

Positions in Ralph Lauren Corporation stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 172 institutional holders increased their position in Ralph Lauren Corporation [NYSE:RL] by around 8,257,219 shares. Additionally, 210 investors decreased positions by around 9,299,957 shares, while 47 investors held positions by with 30,711,682 shares. The mentioned changes placed institutional holdings at 48,268,858 shares, according to the latest SEC report filing. RL stock had 57 new institutional investments in for a total of 1,113,508 shares, while 66 institutional investors sold positions of 1,105,191 shares during the same period.

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