Maxim Group slashes price target on Recon Technology Ltd. [RCON] – find out why.

Recon Technology Ltd. [NASDAQ: RCON] closed the trading session at $0.37 on 03/15/23. The day’s price range saw the stock hit a low of $0.36, while the highest price level was $1.13. The company report on March 15, 2023 that Recon Technology Announces Pricing of $8 million Registered Direct Offering.

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Recon Technology, Ltd. (NASDAQ: RCON) (“Recon” or the “Company”) announced today it has entered into a securities purchase agreement with certain accredited investors on March 15, 2023 to purchase approximately $8 million worth of its Class A ordinary shares (or pre-funded warrants to purchase Class A ordinary shares in lieu thereof) in a registered direct offering, and Class A ordinary shares warrants in a concurrent private placement.

Under the terms of the securities purchase agreement, the Company has agreed to sell 10,002,500 Class A ordinary shares (or pre-funded warrants in lieu thereof) and warrants to purchase up to 10,002,500 Class A ordinary shares in a concurrent private placement transaction. The pre-funded warrants have an exercise price of $0.01 per share and will be exercisable immediately upon the date of issuance until they are exercised in full. The pre-funded warrants will be issued to certain purchasers who have elected to purchase them in lieu of Class A ordinary shares in this offering, as those purchasers would otherwise have exceeded 9.99% (or such lesser percentage as required by the investor) beneficial ownership of our Class A ordinary shares immediately following the offering. The ordinary share warrants will be exercisable immediately upon the date of issuance and have an exercise price of $0.80. The ordinary share warrants will expire five and a half years from the date of issuance. The purchase price for one ordinary share (or pre-funded warrant in lieu thereof) and a corresponding ordinary share warrant will be $0.80. The gross proceeds to the Company from this registered direct offering are estimated to be $8 million before deducting the placement agent’s fees and other estimated offering expenses. .

The stocks have a year to date performance of -70.43 percent and weekly performance of -65.34 percent. The stock has been moved at -39.90 percent over the last six months. The stock has performed -76.57 percent around the most recent 30 days and changed -63.11 percent over the most recent 3-months.

If compared to the average trading volume of 563.44K shares, RCON reached to a volume of 14212403 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 Recon Technology Ltd. [RCON]:

Maxim Group have made an estimate for Recon Technology Ltd. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on June 12, 2018.

The Average True Range (ATR) for Recon Technology Ltd. is set at 0.21, with the Price to Sales ratio for RCON stock in the period of the last 12 months amounting to 1.16. The Price to Book ratio for the last quarter was 0.11, with the Price to Cash per share for the same quarter was set at 1.22.

RCON stock trade performance evaluation

Recon Technology Ltd. [RCON] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -65.34. With this latest performance, RCON shares dropped by -76.57% in over the last four-week period, additionally sinking by -39.90% over the last 6 months – not to mention a drop of -62.10% 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 RCON stock in for the last two-week period is set at 23.94, with the RSI for the last a single of trading hit 18.97, and the three-weeks RSI is set at 28.30 for Recon Technology Ltd. [RCON]. The present Moving Average for the last 50 days of trading for this stock 1.4920, while it was recorded at 0.8547 for the last single week of trading, and 0.9829 for the last 200 days.

Recon Technology Ltd. [RCON]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Recon Technology Ltd. [RCON] shares currently have an operating margin of -98.25 and a Gross Margin at +23.19. Recon Technology Ltd.’s Net Margin is presently recorded at +114.10.

Return on Equity for this stock inclined to 27.29, with Return on Assets sitting at 18.40.

Recon Technology Ltd.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 8.40 and a Current Ratio set at 8.40.

Recon Technology Ltd. [RCON]: Insider Ownership positions

There are presently around $0 million, or 6.80% of RCON stock, in the hands of institutional investors. The top three institutional holders of RCON stocks are: RENAISSANCE TECHNOLOGIES LLC with ownership of 157,600, which is approximately 4.026% of the company’s market cap and around 53.60% of the total institutional ownership; GEODE CAPITAL MANAGEMENT, LLC, holding 15,122 shares of the stock with an approximate value of $6000.0 in RCON stocks shares; and MGO ONE SEVEN LLC, currently with $4000.0 in RCON stock with ownership of nearly 0% of the company’s market capitalization.

Positions in Recon Technology Ltd. stocks held by institutional investors increased at the end of Monday and at the time of the Monday reporting period, where 2 institutional holders increased their position in Recon Technology Ltd. [NASDAQ:RCON] by around 16,220 shares. Additionally, 6 investors decreased positions by around 2,116,279 shares, while 3 investors held positions by with 1,935,409 shares. The mentioned changes placed institutional holdings at 197,090 shares, according to the latest SEC report filing. RCON stock had 1 new institutional investments in for a total of 10,120 shares, while 4 institutional investors sold positions of 2,106,611 shares during the same period.


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