RideNow Group (NASDAQ:RDNW) Releases Quarterly Earnings Results

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

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 Price Performance

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

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of RDNW. Qube Research & Technologies Ltd acquired a new position in shares of RideNow Group in the 2nd quarter worth approximately $52,000. Dimensional Fund Advisors LP acquired a new position in shares of RideNow Group in the 4th quarter worth approximately $64,000. Balyasny Asset Management L.P. acquired a new position in shares of RideNow Group in the 4th quarter worth approximately $66,000. OMERS ADMINISTRATION Corp acquired a new position in shares of RideNow Group in the 4th quarter worth approximately $69,000. Finally, Jane Street Group LLC acquired a new position in shares of RideNow Group in the 2nd quarter worth approximately $71,000. 66.14% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

RDNW has been the topic of several analyst reports. Wall Street Zen upgraded RideNow Group from a “hold” rating to a “buy” rating in a research note on Sunday, April 12th. Robert W. Baird upped their price objective on RideNow Group from $7.00 to $9.00 and gave the company a “neutral” rating in a research note on Friday. DA Davidson reiterated a “neutral” rating and issued a $6.00 price objective on shares of RideNow Group in a research note on Tuesday, March 10th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of RideNow Group in a research note on Tuesday, April 21st. Two investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Reduce” and an average 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.