Mar 25, 2020 Kristen Moran

Is RockWell Medical (NASDAQ:RMTI) a Good Buy Right Now?

RockWell Medical

Biopharmaceutical company Rockwell Medical, Inc. (NASDAQ:RMTI) increased by 1.22% to US$2.48 just minutes into after-hours trading on Wednesday after closing at US$2.45, bringing its market cap to US$169 million. Throughout the day Wednesday, RMTI experienced a high of US$2.65 and a low of US$2.36, with a trading volume of 1,184,072. This additional stock price gain compliments the 7.93% increase seen on Tuesday. 

Since early February, Rockwell Medical stock has been trading at a much higher volume than usual. Daily trade volume of RMTI shares has averaged over 1.5 million since early February, with just a few exceptions. In the last seven days, the average daily trade volume of RMTI stock was 1,686,477, with the highest number of trades taking place on March 17 at 3,187,434 trades.

RockWell Medical

Rockwell Medical’s simple moving average (SMA) 50 price is US$2.67, while the SMA 200 price is US$2.65. The company’s total stock float is 69 million shares.

Rockwell Medical’s insider holding accounts for 3.9%, while 174 institutional owners hold 21.48% of the company’s shares. RMTI’s largest shareholders include BlackRock Inc., Vanguard Group Inc, Vanguard Total Stock Market Index Fund Investor Shares, iShares Russell 2000 ETF, State Street Corp, Geode Capital Management, Vanguard Extended Market Index Fund Investor Shares, Perkins Capital Management Inc, Northern Trust Corp, and iShares Russell 2000 Growth ETF.

Rockwell Medical experienced significant insider buying in Q3 2019, with board member David S Richmond making several purchases in July and August 2019. David S Richmond is now a majority shareholder of the company with 179,039 shares in his possession. His largest purchase took place on July 22, 2019, when he acquired 161,457 shares at a price of US$2.95 for a total cost of US$476,298.15.

Four Wall Street analysts have issued ratings and price targets for RMTI in the last 12 months. The average 12-month price target for Rockwell Medical is US$9.33, which suggests the stock has a possible upside of 280.95%. The high price target offered to RMTI is US$11.00 from HC Wainwright, who also reiterated its “BUY” rating for the company. Meanwhile, the low price target for RMTI is US$6.00 from Piper Jaffray Companies, who downgraded from its initial price target of US$10 in November 2019. 

Rockwell Medical’s price-to-book ratio is 7.75X, while its price-to-sales ratio is 2.79X. The company reported its Q4 2019 earnings on March 12, which showed a net loss of US$7.3 million (US$0.11) per share for the quarter, compared to a net loss of US9.4 million (US$0.17) per share in Q4 2018. The loss topped Zacks consensus estimate of US$0.12 by US$0.01. RMTI reported net sales of US$15.5 million for the fourth quarter, missing the Zacks Consensus Estimate by 6.47%. This compares to Q4 2018 revenue of US$16.85 million. 

Rockwell Medical reported net sales of US$61.3 million for the full year, a decrease from FY 2018. The company said it is primarily due to lower international concentrates sales. Luckily, the loss was offset by an increase in Triferic net sales and sales of concentrates through its contract with DaVita Inc. 

For more information on Rockwell Medical (NASDAQ:RMTI), please click here.

Featured image: DepositPhotos © Gajus-Images

Please See Disclaimer

STOCKS YOU MAY LIKE


Disclosure:

1) Market Jar Media Inc. (“Market Jar”) will not be paid by Rockwell Medical Inc (the “Company”). Market Jar and its affiliates intend to prepare various articles and commentary on the Company during the period from March 20, 2020 until March 26, 2020 (the “Campaign”).

2) Market Jar, its affiliates and their respective directors, officers and employees (the “Market Jar Group”) hold 33,450 shares and 115 call options of Rockwell Medical, Inc. The shares held by the Market Jar Group were acquired between March 4, 2020 and March 17, 2020. The Market Jar Group has not sold any shares of the Company prior to the commencement of the Campaign. The Market Jar Group intends to sell all of the shares it owns of the Company during the Campaign. If we do not sell of the shares of the Company during the Campaign, we may sell them immediately after the Campaign or at any other time.

3) As the Market Jar Group owns shares in the Company, there is an inherent conflict of interest in statements and opinions made by Market Jar and such statements and opinions cannot be considered independent. The Market Jar Group may benefit from any increase in the share price of the Company.

4) The Article and content related to the Company represent the personal and subjective views of the Market Jar, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which Market Jar believes to be reliable, including the Company’s current and periodic reports filed with the Securities Exchange Commission at www.sec.gov.. However, Market Jar has not independently verified or otherwise investigated all such information. None of Market Jar or any of their respective affiliates, guarantee the accuracy or completeness of any such information. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

5) The Article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Market Jar’s terms of use and terms of use and full legal disclaimer as set forth here. This Article is not a solicitation for investment. Market Jar does not render general or specific investment advice and the information on Market Jar should not be considered a recommendation to buy or sell any security. Market Jar does not endorse or recommend the business, products, services or securities of any company mentioned on Market Jar.