BlackRock Fund Advisors recently announced the acquisition of new stake in R1 RCM Inc. (NASDAQ:RCM). The institutional investor has increased its shareholding in the Healthcare company by 4.26% to 14.21 million shares with purchase of 0.58 million shares. This fresh investment now brings its stake to 3.40% valued currently at $250.96 million. In addition, The Vanguard Group, Inc. raised its holdings by 0.58 million to 13.6 million shares. And AllianceBernstein LP has lifted its position by 158.21% or 6.25 million shares – to 10.2 million shares.
With over 6.89 million R1 RCM Inc. (RCM) shares trading Tuesday and a closing price of $8.25 on the day, the dollar volume was approximately $56.8 million. The shares have shown a negative half year performance of -61.57% and its price on 11/29/22 gained nearly 9.85%. Currently, there are 417.70M common shares owned by the public and among those 303.12M shares have been available to trade.
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An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 12 analysts who have offered their price forecasts for RCM have a consensus price objective of $15.27. The analysts have set the share’s price value over the next 12 months at a high of $35.00 and a low of $10.00. The average price target is 42.11% above its recent price level and an upside to the estimated low will see the stock gain 17.5% over that period. But an upside of 76.43% will see the stock hit the forecast high price target while median target price for the stock is $13.00.
Insiders at the company have transacted a total of 75 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 41 of these insider trades were purchases, accounting for 5,720,088 shares. Insider sales of the common stock occurred on 34 occasions, with total insider shares sold totaling 158,919,349 shares.
The top 3 mutual fund holders in R1 RCM Inc. are Vanguard Total Stock Market Index, iShares Core S&P Mid Cap ETF, and Vanguard Small Cap Index Fund. Vanguard Total Stock Market Index owns 4.37 million shares of the company’s stock, all valued at over $77.19 million. The company bought an additional 16877.0 shares recently to bring their total holdings to about 1.05% of the shares outstanding. iShares Core S&P Mid Cap ETF bought 1606.0 shares to see its total holdings expand to 4.13 million shares valued at over $72.92 million and representing 0.99% of the shares outstanding. Vanguard Small Cap Index Fund bought 60723.0 shares to bring its total holdings to over 3.76 million shares at a value of $66.37 million. Vanguard Small Cap Index Fund now owns shares totaling to 0.90% of the shares outstanding.
Shares of R1 RCM Inc. (NASDAQ: RCM) opened at $7.52, up $0.01 from a prior closing price of $7.51. However, the script later moved the day high at 8.31, up 9.85%. The company’s stock has a 5-day price change of 11.64% and -61.10% over the past three months. RCM shares are trading -67.63% year to date (YTD), with the 12-month market performance down to -65.62% lower. It has a 12-month low price of $6.71 and touched a high of $27.86 over the same period. RCM has an average intraday trading volume of 3.86 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -20.18%, -45.15%, and -61.68% respectively.
Institutional ownership of R1 RCM Inc. (NASDAQ: RCM) shares accounts for 84.90% of the company’s 417.70M shares outstanding. Mutual fund holders own 20.20%, while other institutional holders and individual stakeholders account for 33.97% and 15.52% respectively.
It has a market capitalization of $3.28B and a beta (3y monthly) value of 0.84. The stock’s trailing 12-month PE ratio is 101.85, while the earnings-per-share (ttm) stands at $0.08. The company has a PEG of 5.89 and a Quick Ratio of 1.60 with the debt-to-equity ratio at 0.64. Price movements for the stock have been influenced by the stock’s volatility, which stands at 7.93% over the week and 10.17% over the month.
Analysts forecast that R1 RCM Inc. (RCM) will achieve an EPS of $0.09 for the current quarter, $0.12 for the next quarter and $0.6 for 2023. The lowest estimate earnings-per-share for the quarter is -$0.01 while analysts give the company a high EPS estimate of $0.18. Comparatively, EPS for the current quarter was $0.05 a year ago. Earnings per share for the fiscal year are expected to decrease by -785.00%, and 314.30% over the next financial year. EPS should grow at an annualized rate of 17.30% over the next five years, compared to -37.10% over the past 5-year period.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 12 brokerage firm advisors rate R1 RCM Inc. (RCM) as a “Strong Buy” at a consensus score of 1.80. Specifically, 10 Wall Street analysts polled rate the stock as a buy, while 1 of the 12 advise that investors “hold,” and 0 rated it as a “Sell.”
Looking at the support for the RCM, a number of firms have released research notes about the stock. Evercore ISI stated their Outperform rating for the stock in a research note on October 24, 2022, with the firm’s price target at $25. KeyBanc Capital Markets coverage for the R1 RCM Inc. (RCM) stock in a research note released on September 16, 2022 offered a Overweight rating with a price target of $30. Truist was of a view on September 07, 2022 that the stock is Buy, while JP Morgan gave the stock Overweight rating on August 01, 2022, issuing a price target of $28- $33. Barclays on their part issued Overweight rating on June 29, 2022.
