Romeo Power Inc. [NYSE: RMO] loss -2.89% on the last trading session, reaching $0.60 price per share at the time. The company report on August 30, 2022 that Nikola Commences Exchange Offer to Acquire Romeo Power.
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Nikola Corporation (Nasdaq: NKLA), a global leader in zero-emissions transportation and energy infrastructure solutions, announced today that it commenced yesterday, through a wholly-owned subsidiary, an exchange offer (“the Offer”) to purchase all outstanding shares of common stock of Romeo Power, Inc. (NYSE: RMO). On August 1, 2022, Nikola and Romeo jointly announced they had entered into a definitive agreement for this all-stock transaction.
Under the terms of the agreement, Romeo stockholders will receive 0.1186 of a share of Nikola common stock for each Romeo share, representing an approximate 4.5% pro forma ownership of Nikola. The proposed exchange ratio represents an approximately 34% premium to Romeo’s July 29, 2022 closing share price.
Romeo Power Inc. represents 160.16 million in outstanding shares, while the company has a total market value of $114.28 million with the latest information. RMO stock price has been found in the range of $0.578 to $0.609.
If compared to the average trading volume of 7.42M shares, RMO reached a trading volume of 2470498 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 Romeo Power Inc. [RMO]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for RMO shares is $1.80 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on RMO stock is a recommendation set at 3.00. 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.
BTIG Research have made an estimate for Romeo Power Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on March 02, 2022. The new note on the price target was released on October 27, 2021, representing the official price target for Romeo Power Inc. stock. Previously, the target price had yet another raise to $18, while Cowen analysts kept a Outperform rating on RMO stock.
The Average True Range (ATR) for Romeo Power Inc. is set at 0.06, with the Price to Sales ratio for RMO stock in the period of the last 12 months amounting to 3.56. The Price to Book ratio for the last quarter was 0.45, with the Price to Cash per share for the same quarter was set at 0.20.
Trading performance analysis for RMO stock
Romeo Power Inc. [RMO] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -12.06. With this latest performance, RMO shares dropped by -23.81% in over the last four-week period, additionally sinking by -59.92% over the last 6 months – not to mention a drop of -87.79% 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 RMO stock in for the last two-week period is set at 41.82, with the RSI for the last a single of trading hit 35.66, and the three-weeks RSI is set at 44.37 for Romeo Power Inc. [RMO]. The present Moving Average for the last 50 days of trading for this stock 0.6191, while it was recorded at 0.6331 for the last single week of trading, and 1.7275 for the last 200 days.
Romeo Power Inc. [RMO]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Romeo Power Inc. [RMO] shares currently have an operating margin of -698.02 and a Gross Margin at -127.04. Romeo Power Inc.’s Net Margin is presently recorded at +59.69.
Return on Equity for this stock inclined to 4.22, with Return on Assets sitting at 2.90.
Romeo Power Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.70 and a Current Ratio set at 3.00.
An analysis of insider ownership at Romeo Power Inc. [RMO]
There are presently around $29 million, or 26.90% of RMO stock, in the hands of institutional investors. The top three institutional holders of RMO stocks are: D. E. SHAW & CO., INC. with ownership of 6,451,365, which is approximately 61.833% of the company’s market cap and around 9.50% of the total institutional ownership; RENAISSANCE TECHNOLOGIES LLC, holding 6,378,428 shares of the stock with an approximate value of $3.81 million in RMO stocks shares; and VANGUARD GROUP INC, currently with $3.31 million in RMO stock with ownership of nearly -13.889% of the company’s market capitalization.
Positions in Romeo Power Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 58 institutional holders increased their position in Romeo Power Inc. [NYSE:RMO] by around 13,572,502 shares. Additionally, 76 investors decreased positions by around 31,563,413 shares, while 19 investors held positions by with 3,471,279 shares. The mentioned changes placed institutional holdings at 48,607,194 shares, according to the latest SEC report filing. RMO stock had 24 new institutional investments in for a total of 6,722,360 shares, while 41 institutional investors sold positions of 13,628,841 shares during the same period.