REDU stock: buy or sell?

REDU stock price: $5.73 -1.88% At close on February 27th, 2020

Updated on:
February 27th, 2020

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Shares of RISE Education Cayman eased a rough -1.88% and closed at $5.73. On Monday REDU collapsed a frightening -5.85%.

RISE Education Cayman Ltd, through its subsidiaries, provides junior English language training services under the RISE brand name in the People's Republic of China.

Should I buy REDU stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Following a trading strategy helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, RISE Education Cayman 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 is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is RISE Education Cayman stock a buy?

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

REDU stock analysis

Daily outlook

RISE Education Cayman shares eased -1.88% to $5.73 today.

RISE Education Cayman shares eased -1.88% to $5.73 today. Since October when REDU stock price broke down the SMA100d line, it slid $-3.07 per share (-34.89%).

REDU stock chart (daily)

Weekly outlook

Shares of RISE Education Cayman closed this week at $5.73 and collapsed a chilling -6.83%. With this, it's been 5 red weeks in a row, sliding $-1.01 or a -14.17%.

Since price and 40-weeks moving average lines crossed down early July, REDU fell $-3.93 per share (-40.68%). Stocks under the 200d moving average line are usually not recommended for average traders.

REDU stock chart (weekly)

REDU stock price history

REDU IPO was on October 20th, 2017 at $16.05 per share1. Since then, REDU stock sliced a -64.30%, with a yearly average of -32.20%.

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

REDU stock historical price chart

REDU stock reached 52-week highs on March at $11.00, and all-time highs 2018-03-13 with a price of 18.6.

REDU stock price target

Nobody can reliably foresee how stock prices may evolve in the future. 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 30 days we have not found any price prediction for RISE Education Cayman stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

RISE Education Cayman let down analysts on March when it posted an Earnings per Share (EPS) of $0.09 when the analysts' forecast was $0.12.
REDU earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a0.26n/a
2017-Q2-n/a0.29n/a
2017-Q3-n/an/an/a
2017-Q42018-03-15n/a-0.19n/a
2018-Q12018-05-100.110.1-9.1%
2018-Q22018-08-160.110.110.0%
2018-Q32018-11-150.110.08-27.3%
2018-Q42019-03-140.120.09-25.0%
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 31.22% to $1,271.89 M USD. Likewise, its profit margin (compared to sales) boosted to 11.24%, that is $142.96 million.

REDU annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2014$407 M-$-65.17 M-16.0%-
2015$529 M30.19%$-26.29 M-5.0%-59.67%
2016$711 M34.28%$54 M7.6%-305.15%
2017$969 M36.33%$-47.97 M-4.9%-188.97%
2018$1,272 M31.22%$143 M11.2%-397.99%

Quarterly financial results

RISE Education Cayman posted $354.17 million in revenues for 2018-Q4, a 1.95% up compared to previous quarter. Reported quarter earnings marked $31.51 M with a profit margin of 8.90%. Profit margin stayed stable a -0.57% compared to previous quarter when profit margin was 9.47%. When comparing sales to same quarter last year, RISE Education Cayman sales marked an astounding increase and skyrocketed a 30.13%. Looking back to recent quarterly results, RISE Education Cayman posted 3 positive quarters in a row.
REDU quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$31 M-$4 M13.4%-
2017-Q2$33 M8.57%$5 M14.0%13.38%
2017-Q3$39 M17.74%$4 M11.5%-3.46%
2017-Q4$272 M596.42%$-138 M-50.7%-3,167.31%
2018-Q1$270 M-0.75%$36 M13.3%-125.96%
2018-Q2$300 M11.13%$43 M14.2%19.32%
2018-Q3$347 M15.72%$33 M9.5%-23.05%
2018-Q4$354 M1.95%$32 M8.9%-4.21%

RISE Education Cayman ownership

When you are planning to invest in shares of a company, it's worth to review its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For RISE Education Cayman, 6.83% of all outstanding shares are owned by its staff.

In case of RISE Education Cayman stock, 74.87% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for REDU stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to RISE Education Cayman:

REDU
Market cap$325.3 M
Total shares56.8 M
Float shares17.3 M
  - Institutional holdings (%)74.9%
  - Insider holdings (%)6.8%
Shares in short selling0.0%

REDU summary

Thursday, February 27th, 2020
Open$5.71
Close$5.73
Day range$5.70 - $6.26
Previous close$5.84
Session gain-1.88%
Average true range$0.22
50d mov avg$6.66
100d mov avg$7.01
200d mov avg$7.88
Daily pattern
Weekly pattern lt03c

RISE Education Cayman performance

To measure stock performance is always good to compare with competitors or related stocks. For RISE Education Cayman, the comparison is made against .
Stock3m6m12m
REDURISE Education Ca...-20.31%-30.80%-46.10%

RISE Education Cayman competitors

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