R1 RCM stock: buy or sell?

RCM stock price: $13.42 -0.81% At close on January 17th, 2020

Updated on:
January 17th, 2020

4

After topping to all time highs on Tuesday, R1 RCM depreciated -0.81% to $13.42. On Monday RCM rocketed an outstanding 5.92%.

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. That's why is so important to choose your own trading strategy that matches with your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

These 2 buy setups match with R1 RCM stock right now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

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 detect any rating for RCM stock for the last 30 days.

R1 RCM stock analysis

Daily outlook

R1 RCM depreciated -0.81% yesterday to $13.42 after reaching all time highs on Tuesday.

R1 RCM depreciated -0.81% to $13.42 after marking all time highs on Tuesday. On November RCM price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock. From a daily perspective, RCM is in a short term uptrend after plotting its last bottom ($12.14, on January/6) higher than the previous bottom, and its last top ($13.99, on Tuesday) also over the previous top. Now trading in between its last bottom and last top RCM might consolidate in a plain range, waiting to break out over $13.99 or down under $12.14. On Tuesday, RCM hit a new all time high, pushing higher than on Monday tops. Check different trading setups that use ATHs as triggers.

RCM stock chart (daily)

Weekly outlook

R1 RCM escalated 3.07% this week and topped a new all time high at $13.99. Late December 2019 RCM rocketed a super good 6.13% in just one week. Early December RCM plunged a bloodcurdling -5.61% in just one week.

Price pattern shows an uptrend with two rising tops and bottoms, and now finally trading above the $13.01 resistance. Since price and SMA40w lines crossed up early November, RCM climbed $2.61 (24.14%).

RCM stock chart (weekly)

R1 RCM stock price history

R1 RCM stock went public on March 16th, 2017 with a price of $2.751. Since then, RCM stock grew a 388.00%, with an average of 194.00% per year. If you had invested right after RCM's IPO a $1,000 in R1 RCM stock in 2017, it would worth $3,880.00 today.

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

R1 RCM stock historical price chart

RCM stock reached all-time highs on Tuesday 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. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last month we have not found any price target for R1 RCM stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

After presenting its last earnings report on February, R1 RCM . As soon as we get its posted EPS from the earnings report, we will update this review.
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 revenues report draw an extraordinary increase of 93.09% to $868.50 M dollars. When comparing 2018 vs 2017, aligned with this, profit margin (that is, the net income divided by revenues) soared a 7.86% to -5.22%.

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 reported $262.90 M in revenues for 2018-Q4, a 4.99% improvement compared to previous quarter. Reported quarter income marked $-5.70 M 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 sales to same quarter last year, R1 RCM sales marked a super good 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 shares of a company, it's always worth to check 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, 17.85% of all outstanding shares are owned by its staff.

In case of R1 RCM stock, 74.29% 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:

RCMCERNHMSYITMDRX
Market cap$1.5 B$23.8 B$2.5 B$14.4 B$1.6 B
Total shares112.9 M314.1 M88.1 M89.5 M162.4 M
Float shares92.7 M303.1 M86.4 M86.5 M160.3 M
  - Institutional holdings (%)74.3%85.6%102.6%99.4%112.1%
  - Insider holdings (%)17.8%3.5%1.5%3.1%1.3%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

R1 RCM summary

Friday, January 17th, 2020
Open$13.63
Close$13.42
Day range$13.39 - $13.65
Previous close$13.53
Session gain-0.81%
Average true range$0.39
50d mov avg$12.58
100d mov avg$11.42
200d mov avg$11.62
Daily patternlt06a
Weekly pattern lb02c

R1 RCM performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. We chose Cerner, HMS, Gartner, Allscripts Healthcare Solutions and Navigant Consulting as the bechmarking frame for R1 RCM stock.
Stock3m6m12m
RCMR1 RCM33.27%5.50%61.49%
CERNCerner12.24%4.69%41.40%
HMSYHMS-16.29%-13.12%-2.87%
ITGartner11.53%-2.79%24.23%
MDRXAllscripts Health...-10.68%-11.42%-20.43%
NCINavigant Consulti...19.26%37.75%30.25%

R1 RCM competitors

We chose a few stocks to conform a list of R1 RCM competitors to examine if you are interested in investing in RCM: