R1 RCM stock: buy or sell?

RCM stock price: $10.40 0.29% At close on May 26th, 2020

Updated on:
May 26th, 2020

1

R1 RCM shares remained steady 0.29% to $10.40 today. With Tuesday, it's been 4 climbing sessions in a row, soaring $0.31 or 3.02%. On May/18 RCM skyrocketed an extraordinary 7.61%.

R1 RCM Inc. provides revenue cycle management and physician advisory services for healthcare providers in the United States.

Should I buy R1 RCM stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Having a trading strategy helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, R1 RCM stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean RCM will fall in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is R1 RCM stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. Unfortunately, we couldn't find any rating for RCM stock for the last 30 days.

R1 RCM stock analysis

Daily outlook

R1 RCM remained stable a tiny 0.29% and closed at $10.40.

R1 RCM remained stable a tiny 0.29% and closed at $10.40. Since price and SMA200d lines crossed down on March, RCM fell $-1.97 per share (-15.93%). On January, RCM hit a new all time high, pushing higher than on January tops. Check different trading setups that use ATHs as triggers.

RCM stock chart (daily)

Weekly outlook

After boosting an exceptional 8.68% in a week last week, R1 RCM closed this week at $10.40 and remained stable a slightly fine 0.29%.

R1 RCM is in a clear downtrend, marking successive falling peaks and bottoms. Now is trading in between the - range. If the support holds the price, this might mark a double bottom shape and create a flat-base to reverse this downtrend. Far behind is the all-time high R1 RCM recorded by mid January and since then the price is -25.66% below that top. Since price and 40-weeks moving average lines crossed down early March, RCM fell $-1.97 per share (-15.93%). Stocks under the 200 days moving average line are usually not recommended for average traders.

RCM stock chart (weekly)

R1 RCM stock price history

R1 RCM IPO was on March 16th, 2017 at $2.75 per share1. Since then, RCM stock surged a 278.20%, with an average of 92.70% per year. If you had invested $1,000 in R1 RCM stock in 2017, it would worth $2,782.00 today.

1: Adjusted price after possible price splits or reverse-splits.

R1 RCM stock historical price chart

RCM stock reached all-time highs on January with a price of $13.99.

R1 RCM stock price target

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last 30 days we have not detected any price forecast for R1 RCM stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

, R1 RCM presented its financial report, in line with analysts' consensus and published a $-0.02 Earnings per Share. As soon as we get its posted EPS from the earnings report, we will extend this report.
RCM earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a-0.12n/a
2017-Q2-n/a-0.1n/a
2017-Q3-n/a-0.07n/a
2017-Q42018-03-09-0.01-0.08n/a
2018-Q12018-05-09-0.03-0.14n/a
2018-Q22018-08-09-0.05-0.07n/a
2018-Q32018-11-07-0.05-0.17n/a
2018-Q42019-02-22-0.02-0.02n/a
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

Compared to 2017, last anual sales report draw an exceptional increase of 93.09% to $868.50 M USD. In line, its profit margin (compared to revenues) escalated to -5.22%, that is $-45.30 million.

RCM annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$505 M-$130 M25.8%-
2014$210 M-58.37%$-79.62 M-37.9%-161.21%
2015$117 M-44.21%$-84.26 M-71.9%5.82%
2016$593 M405.43%$177 M29.9%-310.16%
2017$450 M-24.09%$-58.80 M-13.1%-133.21%
2018$869 M93.09%$-45.30 M-5.2%-22.96%

Quarterly financial results

R1 RCM posted $262.90 M in sales for 2018-Q4, a 4.99% improvement compared to previous quarter. Reported quarter earnings marked $-5.70 million with a profit margin of -2.17%. Profit margin raised a 3.18% compared to previous quarter when profit margin was -5.35%. When comparing revenues to same quarter last year, R1 RCM sales marked an extraordinary increase and boosted a 87.38%. Looking back to recent quarterly results, R1 RCM posted 7 negative quarters in a row.
RCM quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$87 M-$-8.30 M-9.6%-
2017-Q2$99 M14.38%$-6.70 M-6.7%-19.28%
2017-Q3$123 M23.94%$-3.60 M-2.9%-46.27%
2017-Q4$140 M13.88%$-40.20 M-28.7%1,016.67%
2018-Q1$147 M4.99%$-23.30 M-15.8%-42.04%
2018-Q2$208 M41.14%$-2.90 M-1.4%-87.55%
2018-Q3$250 M20.44%$-13.40 M-5.4%362.07%
2018-Q4$263 M4.99%$-5.70 M-2.2%-57.46%

R1 RCM ownership

When you are planning to buy a stock, it's worth to overview its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For R1 RCM, 16.94% of all outstanding shares are owned by its staff.

In case of R1 RCM stock, 79.83% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for RCM stock account 0.00%, no big difference from last month.

For a better context understanding, the following table shows ownership data compared to other related stocks:

RCM
Market cap$1.2 B
Total shares114.9 M
Float shares104.5 M
  - Institutional holdings (%)79.8%
  - Insider holdings (%)16.9%
Shares in short selling0.0%

R1 RCM summary

Tuesday, May 26th, 2020
Open$10.68
Close$10.40
Day range$10.30 - $10.68
Previous close$10.37
Session gain0.29%
Average true range$0.51
50d mov avg$9.39
100d mov avg$11.09
200d mov avg$11.19
Daily pattern
Weekly pattern lt02a

R1 RCM performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. In the following table, we compare R1 RCM performance to :
Stock3m6m12m
RCMR1 RCM-15.31%-19.32%-11.41%

R1 RCM competitors

Unfortunately, we could not find any public company that could be defined as R1 RCM competitor. This doesn't mean R1 RCM does not have any competitor in the market, it's just we could not detected it.