Can R1 RCM Inc. (RCM) Add Value To Your Portfolio?


As of Wednesday close, R1 RCM Inc.’s (NASDAQ:RCM) stock was up $0.36, moving up 4.73 percent to $7.97. The average number of shares traded per day over the past five days has been 7,077,080 shares. 2 times new highs have been achieved over the past 5 days, with a -$0.29 fall in that time frame. In the last twenty days, the average volume was 7,420,170, while in the previous 50 days, it was 4,088,200.

Since last month, RCM stock retreated -53.45%. Shares of the company fell to $6.71 on 11/09/22, the lowest level in the past month. A 52-week high of $27.86 was reached on 04/12/22 after having rallying from a 52-week low of $6.71. Since the beginning of this year, RCM’s stock price has dropped by -68.73% or -$17.52, and marked a new high 10 times. However, the stock has declined by -71.39% since its 52-week high.

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RCM stock investors should be aware that R1 RCM Inc. (RCM) stock had its last reported insider trading activity 73 days ago on Sep 13. TCP-ASC ACHI Series LLLP, the Director of the company, disposed of 15,000,000 shares for $20.43 on Sep 13. It resulted in a $306,375,000 divestment by the insider. SPARBY JOHN M. sold 40,000 shares at an average price of $25.01 on Aug 19. The insider now owns 123,772 shares following the transaction. On Aug 18, Chief Executive Officer FLANAGAN JOSEPH GERARD sold 200,000 shares at $24.98 apiece. The transaction was valued at $4,996,600.

Valuation Metrics

Right now, R1 RCM Inc. (RCM) has a P/E ratio of about 98.40. The stock’s beta is 0.90. Besides these, the trailing price-to-sales (P/S) ratio of 1.94, the price-to-book (PB) ratio of 1.20.

Financial Health

In the three months ended June 29, R1 RCM Inc.’s quick ratio stood at 1.60, while its current ratio was 1.60, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending June 29 was 0.62, and the total debt-to-equity ratio was 0.64. On the profitability front, the trailing twelve-month gross margin is 21.40% percent. In the year ended June 29, operating margins totaled 3.40%. Based on annual data, RCM earned $311.8 million in gross profit and brought in $1.47 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 10.30%. Return on equity (ROE) for the past 12 months was 1.00%.

In R1 RCM Inc.’s quarter-end financial report for June 29, it reported total debt of $1.73 billion. RCM’s revenue rose 23.45% to $391.9 million during the quarter, while net income inched up to $496.0 million. While analysts expected R1 RCM Inc. to report $0.04 quarterly earnings, the actual figure was -$0.07 per share, beating the consensus estimate by -275.00%. The liabilities of R1 RCM Inc. were 2.31 billion at the end of its most recent quarter ended June 29, and its total debt was $1.92 billion.

Technical Picture

This quick technical analysis looks at R1 RCM Inc.’s (RCM) price momentum. With a historical volatility rate of 114.35%, the RSI 9-day stood at 30.35% on 23 November.

With respect to its five-day moving average, the current R1 RCM Inc. price is down by -3.51% percent or -$0.29. At present, RCM shares trade -54.43% below its 20-day simple moving average and -63.14% percent below its 100-day simple moving average. However, the stock is currently trading approximately -62.41% below its SMA50 and -67.40% below its SMA200.

Stochastic coefficient K was 9.70% and Stochastic coefficient D was 8.31%, while ATR was 0.99. Given the Stochastic reading of 14.33% for the 14-day period, the RSI (14) reading has been calculated as 27.99%. As of today, the MACD Oscillator reading stands at -0.41, while the 14-day reading stands at -1.19.

Analyst Ratings

Evercore ISI launched its rating on R1 RCM Inc. (NASDAQ: RCM) to an Outperform in a note to investors on October 24, 2022. R1 RCM Inc. (RCM) has been rated Buy by analysts. According to 0 brokerage firms, RCM is a sell, and 1 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 1 analyst rate R1 RCM Inc. stock as buy, with 10 recommending it as overweight.

With a median target price of $13.00, the current consensus forecast for the stock is $10.00 – $35.00. Based on these forecasts, analysts predict R1 RCM Inc. (RCM) will achieve an average price target of $15.27.


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