R1 RCM Inc. [NASDAQ: RCM] plunged by -$0.24 during the normal trading session on Thursday and reaching a high of $23.60 during the day while it closed the day at $23.00. The company report on May 27, 2021 that R1 RCM Announces Pricing of Secondary Offering of 15,000,000 Shares by Selling Stockholders.
R1 RCM Inc. (“R1 RCM” or the “Company”) (NASDAQ: RCM) announced that it has priced the underwritten offering of 15,000,000 shares of its common stock by selling stockholders at a price to the public of $22.50 per share. The selling stockholders are TCP-ASC ACHI Series LLLP (“TCP-ASC”), a Delaware series limited liability limited partnership jointly owned by Ascension Health Alliance and investment funds affiliated with TowerBrook Capital Partners L.P., and Joseph Flanagan, the President and Chief Executive Officer of the Company. The underwriters will have a 30-day option to purchase up to an additional 2,250,000 shares of common stock from TCP-ASC. The offering is expected to close on June 1, 2021, subject to the satisfaction or waiver of customary closing conditions. R1 RCM is not selling any shares in the offering and will not receive any of the proceeds from the sale of common stock by the selling stockholders.
Barclays, J.P. Morgan, Morgan Stanley, BofA Securities and Deutsche Bank Securities are serving as active bookrunners for this offering. This offering is being made only by means of a prospectus supplement and related prospectus, copies of which may be obtained from Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, telephone: 888-603-5847, email: firstname.lastname@example.org; J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, telephone: 888-803-9204, email: email@example.com; Morgan Stanley & Co. LLC, 180 Varick Street, 2nd Floor, New York, NY 10014, Attention: Prospectus Department, or by email at firstname.lastname@example.org; BofA Securities, NC1-004-03-43, 200 North College Street, 3rd Floor, Charlotte, NC 28255, Attention: Prospectus Department, email: email@example.com; or Deutsche Bank Securities, Inc., 60 Wall Street, New York, NY 10005, Attention: Prospectus Department, telephone: 800-503-4611 or by email at: firstname.lastname@example.org.
R1 RCM Inc. stock has also loss -7.63% of its value over the past 7 days. However, RCM stock has declined by -16.79% in the 3 months of the year. Over the past six months meanwhile, it has gained 12.63% and lost -4.25% year-on date.
The market cap for RCM stock reached $5.94 billion, with 239.29 million shares outstanding and 118.47 million shares in the current float. Compared to the average trading volume of 1.54M shares, RCM reached a trading volume of 9112016 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to say about R1 RCM Inc. [RCM]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for RCM shares is $35.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on RCM stock is a recommendation set at 1.70. 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.
SVB Leerink have made an estimate for R1 RCM Inc. 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, RBC Capital Mkts raised their target price to Outperform. The new note on the price target was released on April 21, 2020, representing the official price target for R1 RCM Inc. stock. On January 14, 2020, analysts increased their price target for RCM shares from 15 to 15.50.
The Average True Range (ATR) for R1 RCM Inc. is set at 1.09, with the Price to Sales ratio for RCM stock in the period of the last 12 months amounting to 4.59. The Price to Book ratio for the last quarter was 19.33, with the Price to Cash per share for the same quarter was set at 0.40. Price to Free Cash Flow for RCM in the course of the last twelve months was 96.36 with Quick ratio for the last quarter at 1.30.
RCM stock trade performance evaluation
R1 RCM Inc. [RCM] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -7.63. With this latest performance, RCM shares dropped by -15.72% in over the last four-week period, additionally plugging by 12.63% over the last 6 months – not to mention a rise of 113.95% 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 RCM stock in for the last two-week period is set at 36.64, with the RSI for the last a single of trading hit 32.36, and the three-weeks RSI is set at 39.52 for R1 RCM Inc. [RCM]. The present Moving Average for the last 50 days of trading for this stock 25.11, while it was recorded at 24.44 for the last single week of trading, and 22.17 for the last 200 days.
R1 RCM Inc. [RCM]: An insightful look at the core fundamentals
Operating Margin for any stock indicates how profitable investing would be, and R1 RCM Inc. [RCM] shares currently have an operating margin of +11.15 and a Gross Margin at +19.16. R1 RCM Inc.’s Net Margin is presently recorded at +9.21.
Return on Total Capital for RCM is now 16.84, given the latest momentum, and Return on Invested Capital for the company is 14.65. Return on Equity for this stock inclined to 39.92, with Return on Assets sitting at 11.06. When it comes to the capital structure of this company, R1 RCM Inc. [RCM] has a Total Debt to Total Equity ratio set at 187.71. Additionally, RCM Total Debt to Total Capital is recorded at 65.24, with Total Debt to Total Assets ending up at 53.58. Long-Term Debt to Equity for the company is recorded at 672.01, with the Long-Term Debt to Total Capital now at 60.49.
Reflecting on the efficiency of the workforce at the company, R1 RCM Inc. [RCM] managed to generate an average of $5,797 per employee. Receivables Turnover for the company is 12.08 with a Total Asset Turnover recorded at a value of 1.20.R1 RCM Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.30 and a Current Ratio set at 1.30.
Earnings per share (EPS) analysis for R1 RCM Inc. [RCM] stock
With the latest financial reports released by the company, R1 RCM Inc. posted 0.03/share EPS, while the average EPS was predicted by analysts to be reported at 0.03/share. 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 RCM. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for R1 RCM Inc. go to 25.00%.
R1 RCM Inc. [RCM]: Insider Ownership positions
There are presently around $2,264 million, or 91.90% of RCM stock, in the hands of institutional investors. The top three institutional holders of RCM stocks are: BLACKROCK INC. with ownership of 22,283,141, which is approximately 23.48% of the company’s market cap and around 1.30% of the total institutional ownership; VANGUARD GROUP INC, holding 10,150,218 shares of the stock with an approximate value of $235.89 million in RCM stocks shares; and FMR LLC, currently with $129.34 million in RCM stock with ownership of nearly 2.302% of the company’s market capitalization.
Positions in R1 RCM Inc. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 102 institutional holders increased their position in R1 RCM Inc. [NASDAQ:RCM] by around 13,639,865 shares. Additionally, 117 investors decreased positions by around 11,136,539 shares, while 27 investors held positions by with 72,630,853 shares. The mentioned changes placed institutional holdings at 97,407,257 shares, according to the latest SEC report filing. RCM stock had 28 new institutional investments in for a total of 2,298,529 shares, while 28 institutional investors sold positions of 1,980,082 shares during the same period.