Front Yard Residential Corporation [RESI] is -19.12% lower this YTD. Is it still time to buy?

Front Yard Residential Corporation [NYSE: RESI] gained 2.89% on the last trading session, reaching $9.98 price per share at the time. The company report on October 8, 2020 that Bill Erbey Calls on Front Yard Residential to Return Capital to Stockholders via an Orderly Liquidation.

Letter Issued by William C. Erbey to Front Yard’s Chair Makes Clear that Front Yard’s best option to create shareholder value is the orderly liquidation of the Company.

William C. Erbey recently issued the below open letter to the Chair of the Board of Directors of Front Yard Residential Corporation (NYSE: RESI) (“Front Yard” or the “Company”), a provider of affordable single family housing across America. Front Yard was established as an independent public company following its spin-off from Altisource Portfolio Solutions S.A. (NASDAQ: ASPS) in December 2012.

Front Yard Residential Corporation represents 56.27 million in outstanding shares, while the company has a total market value of $589.32 million with the latest information. RESI stock price has been found in the range of $9.50 to $10.25.

If compared to the average trading volume of 395.51K shares, RESI reached a trading volume of 1276402 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 Front Yard Residential Corporation [RESI]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for RESI shares is $11.69 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on RESI stock is a recommendation set at 2.40. 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.

Northland Capital have made an estimate for Front Yard Residential Corporation shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on June 12, 2020. The new note on the price target was released on June 08, 2020, representing the official price target for Front Yard Residential Corporation stock. Previously, the target price had yet another drop from $14 to $11, while Credit Suisse kept a Outperform rating on RESI stock.

The Average True Range (ATR) for Front Yard Residential Corporation is set at 0.39, with the Price to Sales ratio for RESI stock in the period of the last 12 months amounting to 2.78. The Price to Book ratio for the last quarter was 1.51, with the Price to Cash per share for the same quarter was set at 1.85.

Trading performance analysis for RESI stock

Front Yard Residential Corporation [RESI] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 7.89. With this latest performance, RESI shares gained by 3.74% in over the last four-week period, additionally sinking by -15.99% over the last 6 months – not to mention a drop of -14.63% 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 RESI stock in for the last two-week period is set at 63.37, with the RSI for the last a single of trading hit 70.73, and the three-weeks RSI is set at 60.54 for Front Yard Residential Corporation [RESI]. The present Moving Average for the last 50 days of trading for this stock 9.40, while it was recorded at 9.63 for the last single week of trading, and 9.96 for the last 200 days.

Front Yard Residential Corporation [RESI]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Front Yard Residential Corporation [RESI] shares currently have an operating margin of -75.71 and a Gross Margin at -11.46. Front Yard Residential Corporation’s Net Margin is presently recorded at -61.63.

Return on Total Capital for RESI is now -6.19, given the latest momentum, and Return on Invested Capital for the company is -5.74. Return on Equity for this stock declined to -26.00, with Return on Assets sitting at -4.88. When it comes to the capital structure of this company, Front Yard Residential Corporation [RESI] has a Total Debt to Total Equity ratio set at 485.56. Additionally, RESI Total Debt to Total Capital is recorded at 82.92, with Total Debt to Total Assets ending up at 80.23. Long-Term Debt to Equity for the company is recorded at 392.22, with the Long-Term Debt to Total Capital now at 66.98.

Reflecting on the efficiency of the workforce at the company, Front Yard Residential Corporation [RESI] managed to generate an average of -$479,050 per employee. Receivables Turnover for the company is 16.42 with a Total Asset Turnover recorded at a value of 0.08.

Front Yard Residential Corporation [RESI]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Front Yard Residential Corporation posted -0.68/share EPS, while the average EPS was predicted by analysts to be reported at -0.41/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -65.90%. 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 RESI. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Front Yard Residential Corporation go to 10.00%.

An analysis of insider ownership at Front Yard Residential Corporation [RESI]

There are presently around $429 million, or 75.20% of RESI stock, in the hands of institutional investors. The top three institutional holders of RESI stocks are: DEER PARK ROAD CORP with ownership of 7,258,569, which is approximately 11.253% of the company’s market cap and around 2.60% of the total institutional ownership; VANGUARD GROUP INC, holding 6,365,611 shares of the stock with an approximate value of $63.53 million in RESI stocks shares; and BLACKROCK INC., currently with $38.98 million in RESI stock with ownership of nearly -1.415% of the company’s market capitalization.

Positions in Front Yard Residential Corporation stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 81 institutional holders increased their position in Front Yard Residential Corporation [NYSE:RESI] by around 12,972,612 shares. Additionally, 73 investors decreased positions by around 14,107,588 shares, while 13 investors held positions by with 15,949,280 shares. The mentioned changes placed institutional holdings at 43,029,480 shares, according to the latest SEC report filing. RESI stock had 51 new institutional investments in for a total of 8,162,186 shares, while 29 institutional investors sold positions of 7,531,036 shares during the same period.

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