Renewable Energy Group Inc. (NASDAQ: REGI): The Best-Of-Breed For Investing?


    BlackRock Fund Advisors recently announced the acquisition of new stake in Renewable Energy Group Inc. (NASDAQ:REGI). The institutional investor has increased its shareholding in the Energy company by 0.19% to 6.11 million shares with purchase of 11557.0 shares. This fresh investment now brings its stake to 15.65% valued currently at $168.57 million. In addition, Dimensional Fund Advisors LP raised its holdings by 0.34 million to 3.06 million shares. And BlackRock Advisors (UK) Ltd. has lifted its position by 21.77% or 0.16 million shares – to 0.89 million shares.

    With over 1.44 million Renewable Energy Group Inc. (REGI) shares trading Monday and a closing price of $33.43 on the day, the dollar volume was approximately $48.22 million. The shares have shown a negative weekly performance of -12.69% and its price on 08/31/20 lost nearly -5.91%. Currently, there are 39.18M common shares owned by the public and among those 38.08M 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: 5 analysts who have offered their price forecasts for REGI have a consensus price objective of $49.40. The analysts have set the share’s price value over the next 12 months at a high of $70.00 and a low of $33.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Renewable Energy Group Inc. stock is 2.00 for the next 12 months. The average price target is 32.33% above its last price level and an upside to the estimated low will see the stock lose -1.3% over that period. But an upside of 52.24% will see the stock hit the forecast high price target while mean target price for the stock is $46.00.

    Insiders at the company have transacted a total of 51 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 27 of these insider trades were purchases, accounting for 231,457 shares. Insider sales of the common stock occurred on 24 occasions, with total insider shares sold totaling 157,567 shares.

    The top 3 mutual fund holders in Renewable Energy Group Inc. are iShares Core S&P Small Cap ETF, iShares II Plc – Global Clean Ene, and Vanguard Total Stock Market Index. iShares Core S&P Small Cap ETF owns 2.43 million shares of the company’s stock, all valued at over $67.08 million. The company bought an additional 10149.0 shares recently to bring their total holdings to about 6.23% of the shares outstanding. Vanguard Total Stock Market Index bought 338.0 shares to bring its total holdings to over 1.05 million shares at a value of $28.87 million. Vanguard Total Stock Market Index now owns shares totaling to 2.68% of the shares outstanding.

    Shares of Renewable Energy Group Inc. (NASDAQ: REGI) opened at $35.40, down -$0.13 from a prior closing price of $35.53. However, the script later closed the day at $33.43, down -5.91%. The company’s stock has a 5-day price change of -12.69% and 12.48% over the past three months. REGI shares are trading 24.04% year to date (YTD), with the 12-month market performance up to 174.69% higher. It has a 12-month low price of $11.53 and touched a high of $40.80 over the same period. Currently, 1.44 million shares have been traded, compared to an average intraday trading volume of 682.62K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -7.47%, 12.61%, and 30.72% respectively.

    Institutional ownership of Renewable Energy Group Inc. (NASDAQ: REGI) 39.18M shares outstanding. Mutual fund holders own 38.44%, while other institutional holders and individual stakeholders account for 62.48% and 23.08% respectively.

    It has a market capitalization of $1.33B and a beta (3y monthly) value of 1.50. The stock’s trailing 12-month PE ratio is 3.22, while the earnings-per-share (ttm) stands at $10.38. The company has a PEG of 0.21 and a Quick Ratio of 2.30 with the debt-to-equity ratio at 0.06. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.46% over the week and 5.85% over the month.

    Analysts forecast that Renewable Energy Group Inc. (REGI) will achieve an EPS of $0.76 for the current quarter, $0.97 for the next quarter and $5.86 for 2021. The lowest estimate earnings-per-share for the quarter is $0.38 while analysts give the company a high EPS estimate of $1. Comparatively, EPS for the current quarter was -$0.41 a year ago. Earnings per share for the fiscal year are expected to increase by 32.90%, and 72.51% over the next financial year. EPS should shrink at an annualized rate of 15.00% over the next five years, compared to 35.10% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 5 brokerage firm advisors rate Renewable Energy Group Inc. (REGI) as a “Moderate Buy” at a consensus score of 2.00. Specifically, 4 Wall Street analysts polled rate the stock as a buy, while 0 of the 5 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the REGI, a number of firms have released research notes about the stock. H.C. Wainwright stated their Buy rating for the stock in a research note on August 10, 2020, with the firm’s price target at $35-$70. BWS Financial coverage for the Renewable Energy Group Inc. (REGI) stock in a research note released on December 23, 2019 offered a Buy rating with a price target of $58. H.C. Wainwright was of a view on December 03, 2019 that the stock is Buy, while ROTH Capital gave the stock Buy rating on June 24, 2019, issuing a price target of $22. ROTH Capital on their part issued Neutral rating on May 03, 2019.


    Please enter your comment!
    Please enter your name here