RB Global (NYSE:RBA) Shares Gap Up Following Strong Earnings

RB Global, Inc. (NYSE:RBA) (TSE:RBA) shares gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $104.08, but opened at $113.15. RB Global shares last traded at $108.9160, with a volume of 1,128,667 shares changing hands.

The business services provider reported $1.11 earnings per share for the quarter, beating analysts’ consensus estimates of $0.99 by $0.12. RB Global had a net margin of 9.33% and a return on equity of 11.12%. The business had revenue of $1.20 billion during the quarter, compared to analyst estimates of $1.17 billion. During the same period last year, the business earned $0.95 EPS. The business’s revenue was up 5.4% on a year-over-year basis.

RB Global Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, March 2nd. Stockholders of record on Monday, February 9th will be issued a $0.31 dividend. The ex-dividend date of this dividend is Monday, February 9th. This represents a $1.24 annualized dividend and a dividend yield of 1.2%. RB Global’s payout ratio is 60.78%.

Wall Street Analysts Forecast Growth

RBA has been the subject of several analyst reports. BMO Capital Markets boosted their price objective on RB Global from $135.00 to $140.00 and gave the stock an “outperform” rating in a research report on Wednesday. National Bank Financial upgraded RB Global from a “sector perform” rating to an “outperform” rating and set a $124.00 price target for the company in a research report on Monday, November 24th. Bank of America decreased their price target on RB Global from $120.00 to $114.00 and set a “buy” rating for the company in a research note on Friday, November 7th. Wall Street Zen cut shares of RB Global from a “buy” rating to a “hold” rating in a research note on Saturday, November 8th. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of RB Global in a research report on Thursday, January 22nd. Six equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $129.29.

Insider Activity at RB Global

In related news, CEO James Francis Kessler sold 20,742 shares of the firm’s stock in a transaction that occurred on Wednesday, January 21st. The stock was sold at an average price of $115.00, for a total value of $2,385,330.00. Following the transaction, the chief executive officer directly owned 107,569 shares of the company’s stock, valued at approximately $12,370,435. This trade represents a 16.17% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 4.32% of the company’s stock.

Institutional Investors Weigh In On RB Global

A number of hedge funds have recently modified their holdings of RBA. Caprock Group LLC bought a new stake in RB Global in the 3rd quarter valued at about $1,724,000. Cibc World Market Inc. increased its holdings in shares of RB Global by 60.7% during the third quarter. Cibc World Market Inc. now owns 179,707 shares of the business services provider’s stock valued at $19,461,000 after acquiring an additional 67,860 shares in the last quarter. JCIC Asset Management Inc. acquired a new position in shares of RB Global during the third quarter worth approximately $3,621,000. Cidel Asset Management Inc. lifted its holdings in shares of RB Global by 2.7% in the 3rd quarter. Cidel Asset Management Inc. now owns 708,463 shares of the business services provider’s stock worth $76,753,000 after purchasing an additional 18,863 shares in the last quarter. Finally, Triasima Portfolio Management inc. grew its position in RB Global by 47.1% in the 3rd quarter. Triasima Portfolio Management inc. now owns 111,450 shares of the business services provider’s stock valued at $12,074,000 after purchasing an additional 35,701 shares during the period. Institutional investors and hedge funds own 95.37% of the company’s stock.

RB Global Stock Down 3.4%

The company has a debt-to-equity ratio of 0.41, a quick ratio of 1.15 and a current ratio of 1.10. The stock’s 50 day simple moving average is $109.28 and its 200 day simple moving average is $107.75. The firm has a market cap of $19.29 billion, a P/E ratio of 50.87, a price-to-earnings-growth ratio of 2.01 and a beta of 0.54.

About RB Global

RB Global, Inc, an omnichannel marketplace, provides insights, services, and transaction solutions for buyers and sellers of commercial assets and vehicles worldwide. Its marketplace brands include Ritchie Bros., an auctioneer of commercial assets and vehicles offering online bidding; IAA, a digital marketplace connecting vehicle buyers and sellers; Rouse Services, which provides asset management, data-driven intelligence, and performance benchmarking system; SmartEquip, a technology platform that supports customers' management of the equipment lifecycle; and Veritread, an online marketplace for heavy haul transport solution.