What Can We Learn From Lordstown Motors Corp.(RIDE)’s Valuation Ratios?

Lordstown Motors Corp. (NASDAQ:RIDE) finished Tuesday with a subtraction of -$0.65 to close at $5.20, a downside of -11.11 percent. An average of 23,255,799 shares of common stock have been traded in the last five days. There was a fall of -$1.99 in the past week. The last 20 days have seen an average of 11,099,335 shares traded, while the 50-day average volume stands at 12,990,180.

RIDE stock has decreased by -16.80% in the last month. The company shares reached their 1-month lowest point of $5.10 on 10/05/21. With the stock rallying to its 52-week high on 02/11/21, shares of the company touched a low of $4.77 and a high of $31.57 in 52 weeks. In spite of this, the price is down -83.53% from the 52-week high.


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Insider Transactions

244 days have passed since Lordstown Motors Corp. (RIDE) last reported insider trading activity. Rodriguez Julio C., who is Chief Financial Officer, most recently acquired $9,300 shares at $27.00 per share on Feb 04. In this transaction, the insider spent $251,100. Vice President of Engineering, Post Darren, disposed of 10,000 shares at a price of $27.21 on Feb 04. The insider now owns more than $272,100 worth of shares. Prior to that, President Schmidt Phil Richard went on to Sale 50,000 shares at $27.44 each on Feb 03. An amount of $1,372,000 was transacted.

Valuation Metrics

Lordstown Motors Corp. (RIDE) has a trailing price-to-earnings (P/E) ratio of 15.45 for the broader industry and 19.93 for the sector. This means investors are optimistic about the stock’s future prospects. Other valuation ratios to consider include the price-to-book (PB) ratio at 1.53.

The quick ratio of Lordstown Motors Corp. for the three months ended June 29 was 4.70, and the current ratio was 4.70, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.00 and a total debt to equity ratio of 0.00 for the quarter ending June 29. Its gross profit as reported stood at -$102.48 million.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Lordstown Motors Corp.’s return on assets was -59.00%. For the broader industry, ROE averaged 10.14 over the past year.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Lordstown Motors Corp. (RIDE) price momentum. RSI 9-day as of the close on 05 October was 31.02%, suggesting the stock is Neutral, with historical volatility in this time frame at 146.70%.

As of today, RIDE’s price is $6.58 -27.68% or -$1.99 from its 5-day moving average. RIDE is currently trading -18.75% lower than its 20-day SMA and -25.50% lower than its 100-day SMA. However, the stock’s current price level is -28.67% below the SMA50 and -72.94% below the SMA200.

The stochastic %K and %D were 4.40% and 26.13%, respectively, and the average true range (ATR) was 0.85. With the 14-day stochastic at 2.61% and the average true range at 0.76, the RSI (14) stands at 36.35%. The stock has reached -1.13 on the 9-day MACD Oscillator while the 14-day reading was at -1.06.

Analyst Ratings

Morgan Stanley downgraded Lordstown Motors Corp. (NASDAQ: RIDE) to a an Underweight rating in its most recent analyst report. Previously, the stock was rated as a an Equal-weight.The consensus rating for Lordstown Motors Corp. (RIDE) among analysts is Underweight. According to current brokerage recommendations, 5 brokerage firms advise that investors sell RIDE, while 1 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 1 others rate it as a “buy”.

What is RIDE’s price target for the next 12 months?

Analysts predict a range of price targets between $1.00 and $10.00, with a median target of $5.00. Taking a look at these predictions, the average price target given by analysts for Lordstown Motors Corp. (RIDE) stock is $4.75.

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