On Monday, shares of Renren Inc. (NYSE:RENN) marked $5.75 per share versus a previous $4.48 closing price. With having a 28.35% gain, an insight into the fundamental values of Renren Inc., investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. RENN showed a rise of 130.92% within its YTD performance, with highs and lows between $0.45 – $5.50 during the period of 52 weeks, compared to the simple moving average of 140.41% in the period of the last 200 days.
Oppenheimer equity researchers changed the status of Renren Inc. (NYSE: RENN) shares from “Outperform” to a “Perform” rating in the report published on May 15th, 2013. Other analysts, including Maxim Group, also published their reports on RENN shares. Maxim Group repeated the rating from the previous report, marking RENN under “Hold” rating, in the report published on May 31st, 2012. Additionally, RENN shares got another “Sell” rating from Maxim Group, setting a target price of $4.50 on the company’s shares, according to the report published in February 3rd, 2012. On the other hand, Maxim Group Upgrade the “Hold” rating for RENN shares, as published in the report on September 23rd, 2011. Maxim Group seems to be going bullish on the price of RENN shares, based on the price prediction for RENN, indicating that the shares will jump to $7.50, giving the shares “Sell” rating based on their report from August 1st, 2011.
[bold-text]Renren Inc. (RENN) Analysis[/bold-text]
The present dividend yield for RENN owners is set at 0, marking the return investors will get regardless of the company’s performance in the upcoming period. In addition, the growth of sales from quarter to quarter is recording 199.50%, hinting the company’s progress in the upcoming progress.
In order to gain a clear insight on the performance of Renren Inc. (RENN) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of -34.80% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at 0.50 so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.
Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while RENN is currently recording an average of 350.46K in volumes. The volatility of the stock on monthly basis is set at 15.90%, while the weekly volatility levels are marked at 17.37%with 35.29% of gain in the last seven days. Additionally, long-term investors are predicting the target price of $1.70, indicating growth from the present price of $5.75, which can represent yet another valuable research and analysis points that can help you decide whether to invest in RENN or pass.
[bold-text]What to Look for When Analyzing Renren Inc. Shares?[/bold-text]
Renren Inc. (RENN) is based in the China and it represents one of the well-known company operating with Consumer Cyclical sector. If you wish to compare RENN shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of for Renren Inc., while the value can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value -2.19 is supported by the yearly EPS growth of 66.50%.
Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at 50.07%, which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts 13.60% of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.
[bold-text]Are Institutional Investors Increasing Stakes in RENN Shares?[/bold-text]
It appears that more than several institutional investors and hedge funds decided to increase stakes in RENN in the recent period. That is how Oasis Management now has an increase position in RENN by 50.97% in the first quarter, owning 2.56 million shares of RENN stocks, with the value of $10.25 million after the purchase of an additional 862,890 shares during the last quarter. In the meanwhile, Morgan Stanley & Co. LLC also increased their stake in RENN shares changed 63.58% in the first quarter, which means that the company now owns 268077 shares of company, all valued at $1.07 million after the acquisition of additional 104,193 shares during the last quarter.
Group One Trading LP acquired a new position in Renren Inc. during the first quarter, with the value of $4311, and IFP Advisors, Inc. increased their stake in the company’s shares by 0.00% in the first quarter, now owning 0 shares valued at $2671 after the acquisition of the additional 666 shares during the last quarter. In the end, Simplex Trading LLC increased their position by 0.00% during the first quarter, now owning 357 RENN shares, now holding the value of $1432 in RENN with the purchase of the additional 357 shares during the period of the last quarter. At the present, 13.60% of RENN shares are in the ownership of institutional investors.