RCM Technologies (NASDAQ:RCMT) Upgraded at Wall Street Zen

Wall Street Zen upgraded shares of RCM Technologies (NASDAQ:RCMT) from a hold rating to a strong-buy rating in a research report released on Sunday.

A number of other brokerages have also recently commented on RCMT. Weiss Ratings reiterated a “hold (c+)” rating on shares of RCM Technologies in a research note on Friday, July 17th. Zacks Research cut RCM Technologies from a “strong-buy” rating to a “hold” rating in a report on Friday, June 5th. Two equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $45.00.

RCM Technologies Stock Up 1.5%

Shares of NASDAQ RCMT opened at $41.05 on Friday. The company has a current ratio of 1.92, a quick ratio of 1.92 and a debt-to-equity ratio of 0.48. The company has a market cap of $291.04 million, a price-to-earnings ratio of 17.85 and a beta of 0.29. RCM Technologies has a 12 month low of $17.26 and a 12 month high of $42.04. The stock has a 50-day moving average price of $28.40 and a two-hundred day moving average price of $24.85.

RCM Technologies (NASDAQ:RCMT) last posted its quarterly earnings results on Thursday, August 13th. The business services provider reported $0.82 earnings per share for the quarter, beating analysts’ consensus estimates of $0.62 by $0.20. The company had revenue of $93.82 million for the quarter, compared to the consensus estimate of $81.75 million. RCM Technologies had a net margin of 5.13% and a return on equity of 37.92%. As a group, analysts forecast that RCM Technologies will post 2.23 earnings per share for the current fiscal year.

Insider Buying and Selling

In other RCM Technologies news, CFO Kevin D. Miller sold 4,413 shares of RCM Technologies stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $42.00, for a total transaction of $185,346.00. Following the transaction, the chief financial officer directly owned 333,949 shares of the company’s stock, valued at approximately $14,025,858. The trade was a 1.30% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Chairman Bradley Vizi sold 74,719 shares of RCM Technologies stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $38.86, for a total value of $2,903,580.34. Following the transaction, the chairman directly owned 1,402,477 shares in the company, valued at $54,500,256.22. The trade was a 5.06% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 206,205 shares of company stock valued at $7,669,406 over the last 90 days. 28.00% of the stock is owned by insiders.

Hedge Funds Weigh In On RCM Technologies

A number of hedge funds have recently made changes to their positions in the stock. Jane Street Group LLC boosted its holdings in RCM Technologies by 41.2% in the first quarter. Jane Street Group LLC now owns 23,489 shares of the business services provider’s stock valued at $366,000 after acquiring an additional 6,852 shares during the last quarter. Geode Capital Management LLC raised its holdings in RCM Technologies by 78.9% during the 2nd quarter. Geode Capital Management LLC now owns 120,382 shares of the business services provider’s stock worth $2,838,000 after purchasing an additional 53,094 shares during the last quarter. JPMorgan Chase & Co. lifted its position in shares of RCM Technologies by 1,241.0% in the 2nd quarter. JPMorgan Chase & Co. now owns 2,320 shares of the business services provider’s stock worth $55,000 after purchasing an additional 2,147 shares during the period. Russell Investments Group Ltd. lifted its position in shares of RCM Technologies by 264.4% in the 2nd quarter. Russell Investments Group Ltd. now owns 49,386 shares of the business services provider’s stock worth $1,164,000 after purchasing an additional 35,835 shares during the period. Finally, New York State Common Retirement Fund bought a new stake in shares of RCM Technologies in the 2nd quarter valued at $101,000. 43.20% of the stock is currently owned by institutional investors.

Key Stories Impacting RCM Technologies

Here are the key news stories impacting RCM Technologies this week:

• Positive Sentiment: Benchmark raised its price target to $45 from $36 and maintained a “buy” rating. B. Riley also increased its target to $45 and reiterated a buy rating. The $45 target is now the consensus target, implying additional potential upside from recent levels.
• Positive Sentiment: RCMT’s latest quarterly results were stronger than expected, with earnings per share of $0.82 versus the $0.62 consensus estimate and revenue of $93.82 million compared with expectations of $81.75 million. The company’s 37.9% return on equity and projected full-year EPS of $2.23 add support to the bullish analyst outlook.
• Neutral Sentiment: Institutional ownership stands at 43.2%, with Geode Capital, Russell Investments, Jane Street and JPMorgan among investors that recently increased their positions. This suggests growing institutional interest, although the purchases were reported for prior quarters rather than the current session.
• Negative Sentiment: Insiders disclosed approximately $7.7 million in stock sales from August 14–18. CFO Kevin D. Miller sold 94,413 shares, Chairman Bradley Vizi sold 100,000 shares, and insider Michael Saks sold 11,792 shares. The transactions reduced their holdings by roughly 1.3% to 15.1%.
• Negative Sentiment: The insider sales occurred as RCMT advanced sharply from its 52-week low and approached its 52-week high, which could signal profit-taking and may weigh on investor sentiment. However, the CFO’s transactions were executed under a pre-arranged Rule 10b5-1 plan, making them less clearly indicative of a change in management’s outlook. SEC insider transaction filing

RCM Technologies Company Profile

RCM Technologies, Inc (NASDAQ: RCMT) is an information technology consulting firm that specializes in delivering secure, enterprise-level technology solutions. The company’s core offerings include IT infrastructure design and integration, data center modernization, cloud migration and management, cybersecurity services, and digital collaboration platforms. RCM Technologies serves clients across federal and commercial markets, tailoring its services to meet the strict security and compliance requirements of government agencies as well as the performance and scalability needs of private-sector organizations.

Founded in the mid-1980s and headquartered in Dresher, Pennsylvania, RCM Technologies has built a reputation for end-to-end project delivery, from initial assessment and design through implementation and ongoing managed support.