RMO stock is dropping. Romeo Power stock has fallen 78 percent from its peak. One of the reasons is the overall sell-off in EV and growth stocks as a result of the rotation in equity markets from growth to value. The soaring valuations have led to pressure on high-growth EV stocks.
Full Answer
Why is Romeo (RMO) stock falling?
RMO stock is falling. RMO stock is down 14.1 percent at $8.91 in the pre-market trading session on March 31. The stock fell significantly after the company provided financial and business updates. While the revenues surged in the fourth quarter, Romeo expects a weaker 2021 amid battery cell shortages.
What is the potential for RMO stock?
Thus, the potential for RMO stock is massive. EV batteries have come a long way in terms of safety. Many years ago, it wasn’t uncommon to read stories about batteries spontaneously combusting. Of course, this wasn’t just an EV issue but an electronic device dilemma as well.
Can Romeo power (RMO) stock run higher on electric cars?
Gradually, though, Romeo Power’s EV batteries — which claim a 25% energy density advantage over the competition — could tip the scale holistically toward electric cars. With more dense power packs, EVs will have greater range, making anxiety on the topic an afterthought. As well, this will be huge for RMO stock.
What does a hold rating for Romeo power (RMO) mean?
A hold rating indicates that analysts believe investors should maintain any existing positions they have in RMO, but not buy additional shares or sell existing shares. View analyst ratings for Romeo Power or view top-rated stocks.
Is RMO a buy or sell?
Out of 1 analyst, 0 (0%) are recommending RMO as a Strong Buy, 0 (0%) are recommending RMO as a Buy, 1 (100%) are recommending RMO as a Hold, 0 (0%) are recommending RMO as a Sell, and 0 (0%) are recommending RMO as a Strong Sell. What is RMO's Earnings Per Share (EPS) forecast for 2022-2023?
Is RMO undervalued?
Certainly, compared to companies like NKLA and TSLA, RMO is undervalued; however, there has yet to exist fundamental progress at NKLA or RMO that may justify their current equity valuations, in my view - the market capitalizations of these companies are likely driven more by retail investor sentiment and hype around ...
Why is Romeo Power falling?
Why Romeo Power Stock Is Plummeting Today. Shares of Romeo Power (NYSE: RMO) are sinking amid a day of sell-offs for the broader market. In addition to bearish pressures impacting the market, Romeo Power stock also seems to be losing ground due to a recently announced change for its management team.
Will Romeo Power stock recover?
During the day the stock fluctuated 6.76% from a day low at $0.72 to a day high of $0.77. The price has fallen in 6 of the last 10 days and is down by -18.42% for this period....Predicted Opening Price for Romeo Power, Inc. of Monday, June 6, 2022.Fair opening price June 6, 2022Current price$0.74$0.74 (Undervalued)
Is RMO a good company?
Romeo Power has received a consensus rating of Hold. The company's average rating score is 2.00, and is based on no buy ratings, 2 hold ratings, and no sell ratings.
Who is shorting Romeo power?
EV's Most-Shorted Stocks to Buy: Romeo Power (RMO) Shares of RMO harbor short-interest of 30%. And to be fair, the bears have been on the right side of trade in 2021. The stock has surrendered 83% and is just off all-time-lows struck earlier this month.
Does Tesla use Romeo Power?
Our Story. Romeo Power is on a mission to power the world's transition to electrification. Romeo Power was founded in 2016 by a team of former Tesla and SpaceX engineers with a vision to create an electrified world where all have access to clean energy.
Is Romeo Power making money?
Based on the Company's current backlog and commercial outlook, Romeo Power offered the following outlook for fiscal year 2022 ending December 31, 2022: Total Revenue to range between $40 million to $50 million.
Who uses Romeo Power Battery?
The group is considered the largest truck manufacturer in the United States, and its brands include Kenworth, Peterbilt and DAF. Specifically, Romeo Power's components will be used in the Peterbilt 579EV and 520EV models in the US and Canada.
What happened Romeo Power?
Romeo Power was taken public through a special purpose acquisition company (SPAC) merger late in December 2020. The stock is now down roughly 91% since market close on the day of the merger and 87% over the last year.
How much is Romeo Power?
$ 0.7190CloseChgChg %$0.7399-0.0103-1.37%
How many employees does Romeo Power have?
Company Growth (employees)Employees (est.) (Feb 2021)151(+6%)Job Openings18Website Visits (Feb 2022)44.5 kRevenue (FY, 2020)$9 M(+6%)Share Price (May 2022)$0.81 more row
What happened
Shares of electric-truck battery-pack maker Romeo Power ( RMO 9.04% ) were tradings sharply lower on Wednesday, a day after the stock soared following news of a deal with truck giant PACCAR ( PCAR 0.73% ).
So what
Romeo Power's shares soared on Tuesday, closing up nearly 60% after the company announced a significant expansion of its relationship with PACCAR. The truck maker, which owns the Peterbilt, Kenworth, and DAF truck brands, agreed to buy battery packs from Romeo Power for two upcoming all-electric Peterbilts -- a semi and a garbage truck.
NYSE: RMO
The upcoming electric Peterbilts that will incorporate Romeo Power battery packs include the 520EV, a zero-emissions garbage truck. Image source: PACCAR.
Now what
So why is the stock selling off on Wednesday? I think it's nothing more than a reset after Tuesday's huge run. Auto investors should note that as of 2:45 p.m. EDT, Romeo Power's stock price was still up about 31% from where it closed on Monday before the deal was announced.
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When did RMG change to RMO?
The ticker symbol change from "RMG" to "RMO" became effective on December 30, 2020, on the NYSE. Since then, the stock’s performance has been volatile. Lately, the price has been falling. The stock is down 62 percent YTD and 78 percent from its 52-week high. Article continues below advertisement.
Why is Romeo Power stock falling?
One of the reasons is the overall sell-off in EV and growth stocks as a result of the rotation in equity markets from growth to value. The soaring valuations have led to pressure on high-growth EV stocks. In addition, the surge in interest rates has made growth stocks less appealing to investors, which impacts RMO.
How much will Romeo make in 2021?
Now, Romeo expects its sales for 2021 to be between $18 million and $40 million. Article continues below advertisement. In a presentation to investors in November 2020, Romeo projected that it would generate sales of $11 million in 2020 and $140 million in 2021.
Will RMO stock recover?
RMO stock will recover. RMO stock will recover based on the growth outlook for Romeo Power. It’s possible that the battery cell shortage is holding Rom eo Power back in the near term and that it will continue to deliver on its roadmap and succeed over the next few years.
When did Romeo Power go public?
Whether or Not to Buy the Dip in Romeo Power (RMO) Stock. The RMG Acquisition SPAC took Romeo Power (RMO) public in December 2020. The transaction closed on December 29, 2020. The ticker symbol change from "RMG" to "RMO" became effective on December 30, 2020, on the NYSE. Since then, the stock’s performance has been volatile.
Is RMO stock a good investment?
RMO stock looks like a good investment. Batteries are a critical component of an EV. Under the Biden administration, EV sales are projected to surge. As a result, Romeo’s top line could increase as customers transition to zero-emissions vehicles.
What is RMG acquisition?
RMG Acquisition Corp. is a blank check company. It intends to identify, acquire and operate a business in resources and industrial materials sectors, including the chemicals, energy services and alternatives, environmental services, metals and power sectors. The company was founded on October 22, 2018 and is headquartered in New York, NY.
What is the ticker symbol for Romeo Power?
Romeo Power trades on the New York Stock Exchange (NYSE) under the ticker symbol "RMO."
How much does Romeo Power make?
How much money does Romeo Power make? Romeo Power has a market capitalization of $948.55 million and generates $8.97 million in revenue each year. The company earns $-7,620,000.00 in net income (profit) each year or ($0.54) on an earnings per share basis.
What is the P/B ratio of Romeo Power?
Romeo Power has a P/B Ratio of 2.61. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.
How many research reports has Romeo Power been the subject of?
Romeo Power has only been the subject of 2 research reports in the past 90 days.
Where is Romeo Power located?
Romeo Power's mailing address is 4380 Ayers Ave., Vernon, CA 90058. The company can be reached via phone at (212) 220-9503 or via email at [email protected].
Is Romeo Power a hold?
Wall Street analysts have given Romeo Power a "Hold" rating, but there may be better buying opportunities in the stock market. Some of MarketBeat's past winning trading ideas have resulted in 5-15% weekly gains. MarketBeat just released five new stock ideas, but Romeo Power wasn't one of them.
How much revenue will Romeo Power make in 2021?
In 2021, Romeo expects to generate revenue in the range of $18 million–$40 million. Previously, Romeo Power expected to report revenue of $140 million in 2021.
When did Romeo Power go public?
The California-based company went public in December 2020 through a reverse merger with the blank-check company RMG Acquisition Corp.
How long is the Romeo contract?
Romeo has also secured a multi-year production contract with Lion Electric. The contract is expected to generate $234 million in revenue for Romeo over a five-year period starting in 2021. Article continues below advertisement.
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Is Romeo Power a thermal management company?
Fortunately, Romeo Power is a leader in innovative thermal management solutions. To make a long story short, the company incorporates systems to keep its battery always running at the optimum temperature.
