RideNow Group (NASDAQ:RDNW) Announces Quarterly Earnings Results

RideNow Group (NASDAQ:RDNW) issued its earnings results on Thursday. The company reported ($0.11) earnings per share for the quarter, Zacks reports. The company had revenue of $260.40 million for the quarter. RideNow Group had a negative net margin of 4.28% and a negative return on equity of 2,628.57%.

Here are the key takeaways from RideNow Group’s conference call:

• RideNow reported Q1 revenue of $260.4 million, up 6.4% year over year, while adjusted EBITDA rose 32.9% to $9.3 million, marking the fourth straight quarter of year-over-year EBITDA improvement.
• Same-store performance remained strong, with units up 16.3%, revenue up 13.1%, and same-store gross profit up 12.2%, each extending a multi-quarter growth trend.
• Management said the SEC concluded its investigation and recommended no enforcement action against the company, removing a major overhang.
• The company said it is making progress on refinancing and expects to provide more details in the coming weeks, with management aiming to improve flexibility and continue deleveraging over time.
• RideNow ended the quarter with $145.7 million of available liquidity and said cash outflow was driven by higher inventory purchases to support growth and prepare for the spring selling season.

RideNow Group Stock Performance

Shares of RDNW traded down $0.02 on Friday, reaching $7.91. The stock had a trading volume of 172,177 shares, compared to its average volume of 62,831. The firm has a market capitalization of $303.82 million, a price-to-earnings ratio of -6.38 and a beta of 1.13. The company has a 50-day simple moving average of $6.76 and a 200-day simple moving average of $5.93. RideNow Group has a 12-month low of $1.46 and a 12-month high of $8.22.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in RDNW. Qube Research & Technologies Ltd purchased a new position in shares of RideNow Group in the 2nd quarter valued at approximately $52,000. Dimensional Fund Advisors LP purchased a new position in shares of RideNow Group in the 4th quarter valued at approximately $64,000. Balyasny Asset Management L.P. purchased a new position in shares of RideNow Group in the 4th quarter valued at approximately $66,000. OMERS ADMINISTRATION Corp purchased a new position in shares of RideNow Group in the 4th quarter valued at approximately $69,000. Finally, Jane Street Group LLC purchased a new position in shares of RideNow Group in the 2nd quarter valued at approximately $71,000. Hedge funds and other institutional investors own 66.14% of the company’s stock.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on RDNW shares. DA Davidson restated a “neutral” rating and set a $6.00 target price on shares of RideNow Group in a report on Tuesday, March 10th. Wall Street Zen cut RideNow Group from a “buy” rating to a “hold” rating in a report on Saturday. Weiss Ratings restated a “sell (d-)” rating on shares of RideNow Group in a report on Tuesday, April 21st. Finally, Robert W. Baird increased their target price on RideNow Group from $7.00 to $9.00 and gave the company a “neutral” rating in a report on Friday. Two analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Reduce” and a consensus price target of $7.50.

About RideNow Group

RideNow Group, Inc (NASDAQ: RDNW) is a leading U.S. retailer of powersports vehicles, offering both new and pre-owned inventory to enthusiasts and recreational riders. The company’s dealerships carry a diverse lineup of motorcycles, all-terrain vehicles (ATVs), side-by-sides, personal watercraft and snowmobiles from major manufacturers. In addition to vehicle sales, RideNow Group provides comprehensive service and maintenance, aftermarket parts and accessories and a range of financing and protection plans tailored to powersports customers.

Founded in 2004 and headquartered in Houston, Texas, RideNow Group has grown through a combination of organic expansion and strategic acquisitions.