REDU stock: buy or sell?
October 18th, 2019
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. Having a trading plan 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.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is RISE Education Cayman stock a buy?
Banks and financial institutions post stock ratings everyday.At Stocks2.com, we gathered 2 ratings published for REDU stock in the last month.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-8-19||Morgan Stanley||Equal Weight||Underweight|
|2019-3-25||Morgan Stanley||Overweight||Equal Weight|
REDU stock analysis
RISE Education Cayman shares depreciated -1.23% to $7.25 on Oct 18th.
RISE Education Cayman shares depreciated -1.23% to $7.25 on October 18th.
RISE Education Cayman shares plummed -5.72% this week, ending at $7.25. Early September REDU boosted an amazing 8.83% in just one week. Counting this, it's been 3 red weeks in a row, sliding $-1.69 or a -19.20%.
Since price and 40-weeks moving average lines crossed down early July, REDU fell $-2.41 per share (-24.95%). Trading stocks that are under the 40-weeks (that is, 200-days) moving average line is not recommended by many experts, as it indicates that the stock has not enough institutional support.
REDU stock price history
REDU IPO was on October 20th, 2017 at $16.05 per share1. Since then, REDU stock declined a -54.80%, with a yearly average of -27.40%.
1: Adjusted price after possible price splits or reverse-splits.
REDU stock historical price chart
REDU stock reached 52-week highs on November at $12.00, and all-time highs 2018-03-13 with a price of 18.6.
REDU stock price targetPredicting 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 30 days we have not found any price target for RISE Education Cayman stock by any trusted analyst.
Financials and fundamental analysis
Earnings date and Earnings per ShareOn March, RISE Education Cayman missed the forecasts of the analysts and reported a scary EPS of $0.09 per share when experts were expecting $0.12.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared to 2017, last anual turnover report draw a super good gain of 31.22% to $1,271.89 million dollars. When comparing 2018 vs 2017, similarly, profit margin (that is, the net income divided by revenues) skyrocketed a 16.19% to 11.24%.
|2014||$407 M||-||$-65.17 M-16.0%||-|
|2015||$529 M||30.19%||$-26.29 M-5.0%||-59.67%|
|2016||$711 M||34.28%||$54 M7.6%||-305.15%|
|2017||$969 M||36.33%||$-47.97 M-4.9%||-188.97%|
|2018||$1,272 M||31.22%||$143 M11.2%||-397.99%|
Quarterly financial resultsRISE Education Cayman posted $354.17 M 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 remained stable a -0.57% compared to previous quarter when profit margin was 9.47%. When comparing turnover to same quarter last year, RISE Education Cayman sales marked an exceptional gain and rocketed a 30.13%. Looking back to recent quarterly results, RISE Education Cayman posted 3 positive quarters in a row.
|2017-Q1||$31 M||-||$4 M13.4%||-|
|2017-Q2||$33 M||8.57%||$5 M14.0%||13.38%|
|2017-Q3||$39 M||17.74%||$4 M11.5%||-3.46%|
|2017-Q4||$272 M||596.42%||$-138 M-50.7%||-3,167.31%|
|2018-Q1||$270 M||-0.75%||$36 M13.3%||-125.96%|
|2018-Q2||$300 M||11.13%||$43 M14.2%||19.32%|
|2018-Q3||$347 M||15.72%||$33 M9.5%||-23.05%|
|2018-Q4||$354 M||1.95%||$32 M8.9%||-4.21%|
RISE Education Cayman ownershipWhen you are planning to buy shares of a company, it's worth to overview its ownership structure.
RISE Education Cayman shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 10.66% of all shares.
In case of RISE Education Cayman stock, 77.64% 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:
|Market cap||$412.5 M||$2.8 B||$727.3 M||$996.2 M|
|Total shares||56.9 M||4.4 M||124.3 M||40.3 M|
|Float shares||14.3 M||4.1 M||97.2 M||36.9 M|
|- Institutional holdings (%)||77.6%||86.5%||95.2%||85.6%|
|- Insider holdings (%)||10.7%||3.9%||0.6%||6.6%|
|Shares in short selling||0.0%||0.0%||0.0%||0.0%|
|Friday, October 18th, 2019|
|Day range||$7.20 - $8.05|
|Average true range||$0.73|
|50d mov avg||$8.01|
|100d mov avg||$8.52|
|200d mov avg||$9.10|
RISE Education Cayman performanceStocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. We compared RISE Education Cayman against Graham, Houghton Mifflin Harcourt and K12 in the following table:
|REDURISE Education Ca...||-19.53%||-29.47%||-31.99%|
|HMHCHoughton Mifflin ...||5.60%||-22.31%||-14.35%|