Renewable Energy Group Inc. (REGI) shares are trading at higher $59.38 and the avg recommendation for the stock is Strong Buy, while the current analyst price target stands at $72.63.
To add more color to this target, the company’s high over the last year is $65.65 and the low is $16.05. Over the last 52 weeks, REGI is up 250.95% while the S&P 500 is up 15.47%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, REGI reported a profit of $77.65 million. Renewable Energy Group Inc. also saw revenues increase to $576.05 million. In addition, REGI has free cash flow of $507.44 million as of 09-2020. The company’s EBITDA came in at $40.04 million which compares well with its peers.
REGI booked profit margins of 6.80%, its Return on Equity (ROE) is 15.20%, and its Return on Assets is 10.70%. All told, it is clear that, REGI needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. REGI has a short ratio of 2.84 and outstanding shares of 39.31M.
REGI has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.01 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 11.32. Renewable Energy Group Inc. REGI also noted assets of $1.46 billion at the end of the last quarter. Investors should also keep an eye on sector updates as REGI has historically followed its peers on positive news.
All told, Renewable Energy Group Inc. REGI has strung together solid data and demonstrated underlying fundamentals. At its current valuation, REGI represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Renewable Energy Group Inc. REGI is now commanding a market cap of 2.41B and a float of 38.10M. REGI is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of REGI stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in REGI, either long or short, and we have not been compensated for this article.