RAVE Restaurant Group Inc. (NASDAQ: RAVE) Is Getting Increasingly Hard To Ignore


    Newcastle Partners LP recently announced the acquisition of new stake in RAVE Restaurant Group Inc. (NASDAQ:RAVE). The institutional investor has increased its shareholding in the Consumer Cyclical company by 1.92% to 5.34 million shares with purchase of 0.1 million shares. This fresh investment now brings its stake to 35.27% valued currently at $4.8 million. In addition, Geode Capital Management LLC raised its holdings by 783.0 to 42783.0 shares. And Creative Planning, Inc. has lifted its position to 41179.0 shares – to 41179.0 shares.

    With over 0.37 million RAVE Restaurant Group Inc. (RAVE) shares trading Tuesday and a closing price of $0.77 on the day, the dollar volume was approximately $0.29 million. The shares have shown a negative weekly performance of -3.37% and its price on 07/07/20 lost nearly -8.84%. Currently, there are 15.13M common shares owned by the public and among those 13.53M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 1 analysts who have offered their price forecasts for RAVE have a consensus price objective of $2.50. The analysts have set the share’s price value over the next 12 months at a high of $2.50 and a low of $2.50 should the stock experience a downside. Incidentally, analysts’ outlook for the RAVE Restaurant Group Inc. with estimated low will see the stock gain 69.2% over that period. But an upside of 69.2% will see the stock hit the forecast high price target while mean target price for the stock is $2.50.

    Insiders at the company have transacted a total of 5 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 5 of these insider trades were purchases, accounting for 22,053 shares. Insider sales of the common stock occurred on 0 occasions, with total insider shares sold totaling 0 shares.

    The top 3 mutual fund holders in RAVE Restaurant Group Inc. are Vanguard Total Stock Market Index, Vanguard Extended Market Index Fu, and Fidelity Extended Market Index Fu. Vanguard Total Stock Market Index owns 0.14 million shares of the company’s stock, all valued at over $0.12 million. The company has a total holdings of about 0.90% of the shares outstanding. Vanguard Extended Market Index Fu has total holdings of 0.1 million shares valued at over $93050.0 and representing 0.68% of the shares outstanding. Fidelity Extended Market Index Fu has total holdings to over 27004.0 shares at a value of $24304.0. Fidelity Extended Market Index Fu now owns shares totaling to 0.18% of the shares outstanding.

    Shares of RAVE Restaurant Group Inc. (NASDAQ: RAVE) opened at $0.75, down -$0.1 from a prior closing price of $0.85. However, the script later closed the day at $0.77, down -8.84%. The company’s stock has a 5-day price change of -3.37% and 28.60% over the past three months. RAVE shares are trading -53.15% year to date (YTD), with the 12-month market performance down to -74.02% lower. It has a 12-month low price of $0.52 and touched a high of $3.21 over the same period. Currently, 0.37 million shares have been traded, compared to an average intraday trading volume of 375.83K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -11.91%, -11.33%, and -48.46% respectively.

    Institutional ownership of RAVE Restaurant Group Inc. (NASDAQ: RAVE) shares accounts for 43.60% of the company’s 15.13M shares outstanding. Mutual fund holders own 42.48%, while other institutional holders and individual stakeholders account for 46.59% and 2.03% respectively.

    It has a market capitalization of $12.58M and a beta (3y monthly) value of 1.27. The stock’s earnings-per-share (ttm) stands at -$0.34. The company has a Quick Ratio of 1.50 with the debt-to-equity ratio at 15.00. Price movements for the stock have been influenced by the stock’s volatility, which stands at 15.66% over the week and 12.67% over the month.

    Analysts forecast that RAVE Restaurant Group Inc. (RAVE) earnings per share for the fiscal year are expected to decrease by -132.80%. EPS should shrink at an annualized rate of 10.00% over the next five years, compared to 21.60% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 1 brokerage firm advisors rate RAVE Restaurant Group Inc. (RAVE) as a “Hold” at a consensus score of 3.00. Specifically, 0 Wall Street analysts polled rate the stock as a buy, while 1 of the 1 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the RAVE, a number of firms have released research notes about the stock. ROTH Capital stated their Neutral rating for the stock in a research note on May 12, 2016. ROTH Capital coverage for the RAVE Restaurant Group Inc. (RAVE) stock in a research note released on November 13, 2015 offered a Buy rating with a price target of $14. Wunderlich was of a view on June 18, 2015 that the stock is Buy, while ROTH Capital gave the stock Buy rating on April 24, 2015 $20.


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