RENT (Rent the Runway Inc.) stock is in for a key growth catalyst

As of close of business last night, Rent the Runway Inc.’s stock clocked out at $3.78, up 1.61% from its previous closing price of $3.72. In other words, the price has increased by $+0.0600 from its previous closing price. On the day, 960462 shares were traded. RENT stock price reached its highest trading level at $3.9650 during the session, while it also had its lowest trading level at $3.5300.

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To gain a deeper understanding of RENT’s stock, we examine its different ratios. For the most recent quarter (mrq), Quick Ratio is recorded 2.60 and its Current Ratio is at 2.60.

Upgrades & Downgrades

On September 13, 2022, Credit Suisse Downgraded its rating to Neutral which previously was Outperform but kept the price unchanged to $4.

Insider Transactions:

Investing in insider trades can also provide an investor with insight into how management views future stock prices. A recent insider transaction in this stock occurred on Nov 02 when Donato Brian sold 10,098 shares for $1.81 per share. The transaction valued at 18,303 led to the insider holds 537,995 shares of the business.

Schembri Cara sold 893 shares of RENT for $1,619 on Nov 02. The GC & Secretary now owns 203,001 shares after completing the transaction at $1.81 per share. On Nov 02, another insider, Salinas Anushka, who serves as the President & COO of the company, sold 6,261 shares for $1.81 each. As a result, the insider received 11,348 and left with 564,683 shares of the company.

Valuation Measures:

For the stock, the TTM Price-to-Sale (P/S) ratio is 0.85.

Stock Price History:

Over the past 52 weeks, RENT has reached a high of $7.49, while it has fallen to a 52-week low of $1.10. The 50-Day Moving Average of the stock is 2.5058, while the 200-Day Moving Average is calculated to be 3.5875.

Shares Statistics:

It appears that RENT traded 2.75M shares on average per day over the past three months and 1.46M shares per day over the past ten days. A total of 64.52M shares are outstanding, with a floating share count of 58.22M. Insiders hold about 5.30% of the company’s shares, while institutions hold 75.90% stake in the company. Shares short for RENT as of Oct 13, 2022 were 5.84M with a Short Ratio of 6.93M, compared to 5.77M on Sep 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 9.02% and a Short% of Float of 14.32%.

Earnings Estimates

As of right now, 11 analysts gave their recommendation on the stock of the company. On average, analysts expect EPS of -$0.56 for the current quarter, with a high estimate of -$0.53 and a low estimate of -$0.62, while EPS last year was -$6.72. The consensus estimate for the next quarter is -$0.51, with high estimates of -$0.45 and low estimates of -$0.56.

Analysts are recommending an EPS of between -$2.19 and -$2.36 for the fiscal current year, implying an average EPS of -$2.26. EPS for the following year is -$1.91, with 11 analysts recommending between -$1.6 and -$2.28.

Revenue Estimates

In the current quarter, 9 analysts expect revenue to total $73.13M. It ranges from a high estimate of $74M to a low estimate of $71.3M. As of the current estimate, Rent the Runway Inc.’s year-ago sales were $56.18M, an estimated increase of 30.20% from the year-ago figure. For the next quarter, 9 analysts are estimating revenue of $71.66M, an increase of 11.80% less than the figure of $30.20% in the same quarter last year. There is a high estimate of $72.4M for the next quarter, whereas the lowest estimate is $70.5M.

A total of 10 analysts have provided revenue estimates for RENT’s current fiscal year. The highest revenue estimate was $290M, while the lowest revenue estimate was $286.8M, resulting in an average revenue estimate of $288.55M. In the same quarter a year ago, actual revenue was $203.3M, up 41.90% from the average estimate. Based on 11 analysts’ estimates, the company’s revenue will be $344.67M in the next fiscal year. The high estimate is $379.13M and the low estimate is $305.3M. The average revenue growth estimate for next year is up 19.40% from the average revenue estimate for this year.