Reed’s Inc. [REED] fell -31.37% so far this year. What now?

Reed’s Inc. [NASDAQ: REED] loss -17.84% or -0.14 points to close at $0.62 with a heavy trading volume of 7092157 shares. The company report on November 20, 2020 that Reed’s Inc. Prices Underwritten Public Offering of Common Stock.

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Reed’s Inc. (Nasdaq: REED), owner of the nation’s leading portfolio of handcrafted, all-natural beverages, announced the pricing of an underwritten public offering of 18,750,000 shares of its common stock at a price of $0.56 per share for gross proceeds of approximately $10.5 million. Reed’s has also granted to the underwriter a 45-day option to purchase an additional 2,812,500 shares of common stock to cover overallotments in connection with the offering. The offering is expected to close on November 24, 2020, subject to customary closing conditions.

Roth Capital Partners is acting as sole book-running manager for the offering. National Securities Corporation, a wholly owned subsidiary of National Holdings, Inc. (NASDAQ:NHLD) is acting as co-manager.

It opened the trading session at $0.60, the shares rose to $0.6301 and dropped to $0.571, the range by which the price of stock traded the whole day. The daily chart for REED points out that the company has recorded -8.16% loss over the past six months. However, it is still -72.22% lower than its most recent low trading price.

If we look at the average trading volume of 241.87K shares, REED reached to a volume of 7092157 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 Reed’s Inc. [REED]:

R. F. Lafferty have made an estimate for Reed’s Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on May 10, 2019. While these analysts kept the previous recommendation, Lake Street raised their target price to Buy. The new note on the price target was released on April 26, 2019, representing the official price target for Reed’s Inc. stock. Previously, the target price had yet another drop from $7 to $5.50, while Maxim Group kept a Buy rating on REED stock. On August 05, 2016, analysts decreased their price target for REED shares from 10 to 8.

The Average True Range (ATR) for Reed’s Inc. is set at 0.07, with the Price to Sales ratio for REED stock in the period of the last 12 months amounting to 1.26. The Price to Book ratio for the last quarter was 62.45, with the Price to Cash per share for the same quarter was set at 0.01.

Trading performance analysis for REED stock

Reed’s Inc. [REED] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -22.86. With this latest performance, REED shares dropped by -33.70% in over the last four-week period, additionally sinking by -8.16% over the last 6 months – not to mention a drop of -14.28% 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 REED stock in for the last two-week period is set at 29.52, with the RSI for the last a single of trading hit 25.99, and the three-weeks RSI is set at 32.63 for Reed’s Inc. [REED]. The present Moving Average for the last 50 days of trading for this stock 0.9082, while it was recorded at 0.7265 for the last single week of trading, and 0.8608 for the last 200 days.

Reed’s Inc. [REED]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Reed’s Inc. [REED] shares currently have an operating margin of -44.06 and a Gross Margin at +23.29. Reed’s Inc.’s Net Margin is presently recorded at -47.64.

Return on Total Capital for REED is now -198.03, given the latest momentum, and Return on Invested Capital for the company is -672.45. When it comes to the capital structure of this company, Reed’s Inc. [REED] has a Total Debt to Total Equity ratio set at 754.32. Additionally, REED Total Debt to Total Capital is recorded at 88.29, with Total Debt to Total Assets ending up at 54.10. Long-Term Debt to Equity for the company is recorded at 515.29, with the Long-Term Debt to Total Capital now at 55.37.

Reflecting on the efficiency of the workforce at the company, Reed’s Inc. [REED] managed to generate an average of -$575,429 per employee. Receivables Turnover for the company is 12.86 with a Total Asset Turnover recorded at a value of 2.37.Reed’s Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.40 and a Current Ratio set at 1.00.

Reed’s Inc. [REED]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Reed’s Inc. posted -0.09/share EPS, while the average EPS was predicted by analysts to be reported at -0.08/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -12.50%. 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 REED. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Reed’s Inc. go to 20.00%.

An analysis of insider ownership at Reed’s Inc. [REED]

There are presently around $8 million, or 29.90% of REED stock, in the hands of institutional investors. The top three institutional holders of REED stocks are: HANDELSBANKEN FONDER AB with ownership of 2,550,000, which is approximately 0% of the company’s market cap and around 2.70% of the total institutional ownership; BARD ASSOCIATES INC, holding 2,239,350 shares of the stock with an approximate value of $1.4 million in REED stocks shares; and ROYCE & ASSOCIATES LP, currently with $1.2 million in REED stock with ownership of nearly 23.723% of the company’s market capitalization.

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Positions in Reed’s Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 20 institutional holders increased their position in Reed’s Inc. [NASDAQ:REED] by around 919,821 shares. Additionally, 15 investors decreased positions by around 1,683,240 shares, while 17 investors held positions by with 10,736,571 shares. The mentioned changes placed institutional holdings at 13,339,632 shares, according to the latest SEC report filing. REED stock had 8 new institutional investments in for a total of 90,387 shares, while 8 institutional investors sold positions of 1,542,654 shares during the same period.

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