What Can We Learn From ReShape Lifesciences Inc.(RSLS)’s Valuation Ratios?

ReShape Lifesciences Inc. (NASDAQ:RSLS) trading with an addition of $0.84 to $3.32 on Friday, an upside of 33.87 percent. An average of 3,239,010 shares of common stock have been traded in the last five days. There was a gain of $0.51 in the past week. The last 20 days have seen an average of 1,834,448 shares traded, while the 50-day average volume stands at 2,049,529.

RSLS stock has decreased by -19.22% in the last month. The company shares reached their 1-month lowest point of $2.42 on 10/07/21. With the stock rallying to its 52-week high on 01/20/21, shares of the company touched a low of $2.16 and a high of $32.31 in 52 weeks. In spite of this, the price is down -89.72% from the 52-week high.


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Insider Transactions

28 days have passed since ReShape Lifesciences Inc. (RSLS) last reported insider trading activity. Bandy Barton P., who is President and CEO, most recently acquired $294,494 shares at $2.89 per share on Sep 10. In this transaction, the insider spent $851,088. Chief Financial Officer, STANKOVICH THOMAS, disposed of 48,366 shares at a price of $2.89 on Sep 10. The insider now owns more than $139,778 worth of shares. Prior to that, Director GLADNEY DAN W went on to Sale 200,000 shares at $2.99 each on Sep 10. An amount of $598,000 was transacted.

Valuation Metrics

ReShape Lifesciences Inc. (RSLS) has a trailing price-to-earnings (P/E) ratio of 26.30 for the broader industry and 31.96 for the sector. This means investors are optimistic about the stock’s future prospects. The stock’s beta is -1.18. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 5.92, the price-to-book (PB) ratio at 0.35.

The quick ratio of ReShape Lifesciences Inc. for the three months ended December 30 was 1.00, and the current ratio was 1.10, 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 0.05 for the quarter ending December 30. ReShape Lifesciences Inc.’s EBITDA margin for the year ending December 30 is -620.40%. Its gross profit as reported stood at $6.26 million compared to revenue of $11.3 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, ReShape Lifesciences Inc.’s return on assets was -29.20%. For the broader industry, ROE averaged 3.96 over the past year.

Earnings Surprise

The analyst consensus anticipated ReShape Lifesciences Inc.’s latest quarter earnings to come in at -$0.18 per share, but it turned out to be -$0.51, a -183.30% surprise. For the quarter, EBITDA amounted to -$2.51 million. Shareholders own equity worth $15.84 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at ReShape Lifesciences Inc. (RSLS) price momentum. RSI 9-day as of the close on 07 October was 66.73%, suggesting the stock is Neutral, with historical volatility in this time frame at 161.29%.

As of today, RSLS’s price is $2.67 +18.42% or $0.51 from its 5-day moving average. RSLS is currently trading +10.44% higher than its 20-day SMA and -62.04% lower than its 100-day SMA. However, the stock’s current price level is -16.75% below the SMA50 and -28.07% below the SMA200.

The stochastic %K and %D were 34.42% and 15.37%, respectively, and the average true range (ATR) was 0.28. With the 14-day stochastic at 93.50% and the average true range at 0.27, the RSI (14) stands at 58.60%. The stock has reached 0.02 on the 9-day MACD Oscillator while the 14-day reading was at -0.04.

Analyst Ratings

The consensus rating for ReShape Lifesciences Inc. (RSLS) among analysts is Buy. According to current brokerage recommendations, 0 brokerage firms advise that investors sell RSLS, while 0 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 1 others rate it as a “buy”.

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

Analysts predict a range of price targets between $10.25 and $10.25, with a median target of $10.25. Taking a look at these predictions, the average price target given by analysts for ReShape Lifesciences Inc. (RSLS) stock is $10.25.

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