Is Rockwell Medical Inc. (RMTI) A Risky Investment?

Rockwell Medical Inc. (NASDAQ:RMTI) finished Wednesday with an addition of $0.03 to close at $0.59, an upside of 5.72 percent. An average of 762,460 shares of common stock have been traded in the last five days. There was a gain of $0.0314 in the past week. The last 20 days have seen an average of 549,965 shares traded, while the 50-day average volume stands at 566,828.

RMTI stock has decreased by -2.91% in the last month. The company shares reached their 1-month lowest point of $0.5419 on 10/12/21. With the stock rallying to its 52-week high on 02/09/21, shares of the company touched a low of $0.54 and a high of $1.98 in 52 weeks. In spite of this, the price is down -70.21% from the 52-week high.


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Insider Transactions

297 days have passed since Rockwell Medical Inc. (RMTI) last reported insider trading activity. Richmond David S., who is 10% Owner, most recently acquired $42,450 shares at $1.03 per share on Dec 21. In this transaction, the insider spent $43,724. 10% Owner, Richmond David S., disposed of 521,876 shares at a price of $1.01 on Dec 16. The insider now owns more than $529,649 worth of shares. Prior to that, 10% Owner Richmond David S. went on to Sale 278,124 shares at $1.11 each on Dec 15. An amount of $307,505 was transacted.

Valuation Metrics

Rockwell Medical Inc. (RMTI) has a trailing price-to-earnings (P/E) ratio of 23.00 for the broader industry and 32.30 for the sector. The stock’s beta is 0.93. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.90, the price-to-book (PB) ratio at 3.10.

The quick ratio of Rockwell Medical Inc. for the three months ended June 29 was 1.40, and the current ratio was 1.50, 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 1.16 for the quarter ending June 29. On the profitability front, the trailing 12-month gross margin is 1.40% against a 5-year average of 5.1%. Rockwell Medical Inc.’s EBITDA margin for the year ending June 29 is -42.01%, while its operating margin for the same period stands at -48.70%. Its gross profit as reported stood at $2.73 million compared to revenue of $62.2 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, Rockwell Medical Inc.’s return on assets was -43.40%, compared to -47.7% over the last five years. Meanwhile, the return on equity (ROE) for the past 12 months has been -106.70% and the 5-year average holds at -91.7%. For the broader industry, ROE averaged -15.50 over the past year.

Earnings Surprise

For the three-month period that ended June 29, Rockwell Medical Inc. had $8.57 million in cash. The analyst consensus anticipated Rockwell Medical Inc.’s latest quarter earnings to come in at -$0.08 per share, but it turned out to be -$0.09, a -12.50% surprise. For the quarter, EBITDA amounted to -$7.1 million. Shareholders own equity worth $93.89 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Rockwell Medical Inc. (RMTI) price momentum. RSI 9-day as of the close on 13 October was 50.82%, suggesting the stock is Neutral, with historical volatility in this time frame at 42.70%.

As of today, RMTI’s price is $0.5706 +5.62% or $0.0314 from its 5-day moving average. RMTI is currently trading -4.56% lower than its 20-day SMA and -32.95% lower than its 100-day SMA. However, the stock’s current price level is -20.08% below the SMA50 and -38.77% below the SMA200.

The stochastic %K and %D were 21.93% and 17.52%, respectively, and the average true range (ATR) was 0.0322. With the 14-day stochastic at 38.29% and the average true range at 0.0326, the RSI (14) stands at 46.37%. The stock has reached 0.0039 on the 9-day MACD Oscillator while the 14-day reading was at -0.0157.

Analyst Ratings

Piper Jaffray launched coverage on Rockwell Medical Inc. (NASDAQ: RMTI) in its analyst report released on June 24, 2019. The firm assigned the stock a an Overweight rating.The consensus rating for Rockwell Medical Inc. (RMTI) among analysts is Buy. According to current brokerage recommendations, 0 brokerage firms advise that investors sell RMTI, while 0 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 2 others rate it as a “buy”.

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

Analysts predict a range of price targets between $5.00 and $5.00, with a median target of $5.00. Taking a look at these predictions, the average price target given by analysts for Rockwell Medical Inc. (RMTI) stock is $5.00.

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