Red Robin Gourmet Burgers Inc. (NASDAQ:RRGB): A Fundamentally Weighted Stock for Long-Term Investors

Red Robin Gourmet Burgers Inc. (NASDAQ:RRGB) shares traded lower over the last trading session, losing -5.54% on 10/13/20. The shares fell to a low of $12.68 before closing at $12.78. Intraday shares traded counted 0.98 million, which was 16.18% higher than its 30-day average trading volume of 1.17M. RRGB’s previous close was $13.53 while the outstanding shares total 15.54M. The firm has a beta of 2.54. The stock’s Relative Strength Index (RSI) is 49.45, with weekly volatility at 5.46% and ATR at 0.98. The RRGB stock’s 52-week price range has touched low of $4.04 and a $37.29 high.

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Investors have identified the Restaurants company Red Robin Gourmet Burgers Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $193.36 million, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Red Robin Gourmet Burgers Inc. (RRGB) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For RRGB, the company has in raw cash 26.14 million on their books with 9.69 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 106927000 million total, with 204989000 million as their total liabilities.

RRGB were able to record -30.06 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by -3.91 million. In cash movements, the company had a total of -18.61 million as operating cash flow.

Potential earnings growth for Red Robin Gourmet Burgers Inc. (RRGB)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Red Robin Gourmet Burgers Inc. recorded a total of 161.12 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -91.15% coming in sequential stages and their sales for the third quarter reducing by -89.96%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 156.94 million trying to sell their products during the last quarter, with the result yielding a gross income of 4.18 million. This allows shareholders to hold on to 15.54M with the revenue now reading -4.09 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (-2.97 cents a share).

Having a look at the company’s valuation, the company is expected to record 0.62 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on RRGB sounds very interesting.

Is the stock of RRGB attractive?

In related news, 10% Owner, Vintage Capital Management LLC sold 300,692 shares of the company’s stock in a transaction that recorded on Jun 10. The sale was performed at an average price of 14.76, for a total value of 4,439,236. As the sale deal closes, the 10% Owner, Vintage Capital Management LLC now sold 559,208 shares of the company’s stock, valued at 10,332,878. Also, Director, LUMPKIN STEVE bought 10,000 shares of the company’s stock in a deal that was recorded on Mar 13. The shares were price at an average price of 8.50 per share, with a total market value of 85,000. Following this completion of acquisition, the Chief Financial Officer, Schweinfurth Lynn S now holds 10,000 shares of the company’s stock, valued at 88,500. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.10%.

0 out of 7 analysts covering the stock have rated it a Buy, while 6 have maintained a Hold recommendation on Red Robin Gourmet Burgers Inc.. 0 analysts has assigned a Sell rating on the RRGB stock. The 12-month mean consensus price target for the company’s shares has been set at $11.00.