Renren stock: buy or sell?

RENN stock price: $4.21 38.03% At close on May 22nd, 2020

Updated on:
May 22nd, 2020

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Renren shares boosted 38.03% to $4.21 on Friday. On Tuesday RENN plunged a chilling -6.98%.

Renren Inc. operates a social networking Internet platform in the People's Republic of China. It operates through two segments, Renren and Internet Finance.

Should I buy Renren stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. 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.

None of our preferred buy setups matches with Renren stock situation right now, therefore this is not a suitable entry point.

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 Renren stock a buy?

Financial institutions and banks post stock ratings everyday. Unfortunately, we couldn't find any rating for RENN stock for the last 30 days.

Renren stock analysis

Daily outlook

Renren boosted a super good 38.03% and closed at $4.21.

Shares of Renren boosted a super good 38.03% and closed at $4.21. Since price and SMA200d lines crossed up on Wednesday, RENN climbed $2.49 (144.77%). From a daily perspective, RENN is in a short term uptrend after plotting its last bottom ($1.54, on May 14th) higher than the previous bottom, and its last top ($3.37, on Wednesday) also over the previous top. Now trading in between its last bottom and last top RENN might consolidate in a plain range, waiting to break out over $3.37 or down under $1.54.

RENN stock chart (daily)

Weekly outlook

Renren shares broke up the simple moving average line of 200d, closing at $4.21. Counting this, it's been 4 green weeks in a row, gaining $3.42 or 407.14%. Late April RENN collapsed a frightening -6.33% in just one week.

If you observe the weekly chart, price finally broke over the resistance at $1.04 and continued climbing.

RENN stock chart (weekly)

Renren stock price history

Renren stock went public on May 4th, 2011 with a price of $26.681. Since then, RENN stock sliced a -84.20%, with a yearly average of -9.40%.

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

Renren stock historical price chart

RENN stock reached 52-week highs on Friday at $4.50, and all-time highs 2011-05-04 with a price of 32.83.

Renren stock price target

Nobody can reliably foresee how stock prices may evolve in the future. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. You should not follow the analysts' RENN stock price predictions in the hope that they will be met as they may be wrong and not met. For the last month we have not found any price target for Renren stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

, when Renren presented its last earnings report, it . Unfortunately, reported EPS is not yet available in our database.
RENN earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2016-Q4-n/a-0.24n/a
2017-Q1-n/a-0.08n/a
2017-Q2-n/a0.11n/a
2017-Q32017-12-15n/an/an/a
2017-Q42018-05-07n/a-0.79n/a
2018-Q12018-06-19n/a-0.45n/a
2018-Q22018-09-11n/a-0.06n/a
2018-Q32019-03-29n/a-0.68n/a
2018-Q4-n/an/an/a
2019-Q1-n/an/an/a

Annual financial results

Compared to 2016, last anual revenues report draw an exceptional increase of 218.95% to $202.10 M dollars. When comparing 2017 vs 2016, in the same way, profit margin (that is, the net income divided by revenues) boosted a 237.88% to -54.64%.

To have an up to date view of the financial situation of Renren, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2018-Q3 that can be compared to 2017 fiscal year results. Annual Renren TTM sales up to September 2018 were $488.72 and income was $41.52 million USD. When comparing this TTM figures with the last reported annuality, we can esteem Renren business evolution since December 2017: Annual sales up to September, compared to lastest yearly report, climbed an extraordinary 141.82%. Similarly, profit margin (net income/sales) skyrocketed at -54.64%.

RENN annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2012$176 M-$-75.02 M-42.6%-
2013$148 M-15.88%$-28.90 M-19.5%-61.48%
2014$83 M-43.99%$60 M72.9%-309.20%
2015$41 M-50.44%$-220.13 M-535.4%-464.09%
2016$63 M54.13%$-185.35 M-292.5%-15.80%
2017$202 M218.95%$-110.43 M-54.6%-40.42%
TTM $489 M141.82%$42 M8.5%-137.60%

Quarterly financial results

Renren posted $116.84 M in revenues for 2018-Q3, a -13.47% less compared to previous quarter. Reported quarter earnings marked $-28.76 million with a profit margin of -24.61%. Profit margin collapsed a -147.63% compared to previous quarter when profit margin was 123.02%. When comparing turnover to same quarter last year, Renren sales marked an outstanding gain and skyrocketed a 89.18%. Looking back to recent quarterly results, Renren posted 2 negative quarters in a row.
RENN quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2016-Q4$20 M-$-90 M-459.0%-
2017-Q1$21 M6.72%$-16 M-77.3%-82.04%
2017-Q2$22 M6.96%$-17 M-77.0%6.60%
2017-Q3$62 M175.36%$-23 M-36.9%31.82%
2017-Q4$97 M57.15%$-54 M-55.9%138.48%
2018-Q1$140 M44.01%$-42 M-29.7%-23.47%
2018-Q2$135 M-3.39%$166 M123.0%-499.81%
2018-Q3$117 M-13.47%$-29 M-24.6%-117.31%

Renren ownership

Reviewing Renren ownership structure gives valuable information about the company and its governance (insider ownership) or the amount of investors that are on the short side.

Renren shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 50.07% of all shares.

In case of Renren stock, 14.28% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for RENN stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Renren:

RENN
Market cap$97.8 M
Total shares23.2 M
Float shares4.1 M
  - Institutional holdings (%)14.3%
  - Insider holdings (%)50.1%
Shares in short selling0.0%

Renren summary

Friday, May 22nd, 2020
Open$3.00
Close$4.21
Day range$3.00 - $4.50
Previous close$3.05
Session gain38.03%
Average true range$0.46
50d mov avg$1.15
100d mov avg$1.44
200d mov avg$1.90
Daily patternlt06a
Weekly pattern lb01c

Renren performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. For Renren, the comparison is made against .
Stock3m6m12m
RENNRenren168.15%89.64%6.31%

Renren competitors

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