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 (EPS) for the quarter, Zacks reports. RideNow Group had a negative net margin of 4.84% and a negative return on equity of 2,628.57%. The firm had revenue of $260.40 million for 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 Stock Up 0.5%

Shares of NASDAQ:RDNW traded up $0.04 on Thursday, reaching $7.93. The company had a trading volume of 66,715 shares, compared to its average volume of 60,533. The stock has a market capitalization of $304.61 million, a P/E ratio of -5.71 and a beta of 1.13. The stock has a 50-day moving average price of $6.73 and a 200 day moving average price of $5.91. RideNow Group has a twelve month low of $1.46 and a twelve month high of $8.22.

Hedge Funds Weigh In On RideNow Group

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RDNW. Qube Research & Technologies Ltd acquired a new stake in shares of RideNow Group in the second quarter worth $52,000. Dimensional Fund Advisors LP bought a new position in RideNow Group in the 4th quarter worth $64,000. Balyasny Asset Management L.P. bought a new position in RideNow Group in the 4th quarter worth $66,000. OMERS ADMINISTRATION Corp acquired a new position in RideNow Group during the 4th quarter worth $69,000. Finally, Jane Street Group LLC acquired a new position in RideNow Group during the 2nd quarter worth $71,000. Institutional investors and hedge funds own 66.14% of the company’s stock.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on RDNW shares. Robert W. Baird raised their price target on RideNow Group from $5.00 to $7.00 and gave the stock a “neutral” rating in a research note on Tuesday, March 10th. Weiss Ratings reissued a “sell (d-)” rating on shares of RideNow Group in a research note on Tuesday, April 21st. Wall Street Zen upgraded RideNow Group from a “hold” rating to a “buy” rating in a report on Sunday, April 12th. Finally, DA Davidson reiterated a “neutral” rating and issued a $6.00 target price on shares of RideNow Group in a research note on Tuesday, March 10th. Two research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Reduce” and an average price target of $6.50.

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.