RealPage Stock Forms Big Divergence From Large Players Volume

RealPage stock is chopping out sideways while the large players volume has exploded higher. This is one of my favorite chart setups.

RealPage stock has formed a big positive divergence between large players volume and price.

RealPage reported EPS of $0.22 which was in-line with estimates. Revenue missed slightly, coming in at $169.76 million versus the $170.73 million estimate. The company’s quarterly revenue was up 14.9% year-over-year.

On November 1, 2017, Benchmark Co. raised its price target on RealPage stock to $51 from $43. Benchmark Co. has a Buy rating on the stock. Overall there are 1 Sell rating, 1 Hold rating, and 5 Buy ratings.

On October 23, 2017, RealPage Inc. announced the acquisition of PEX Software Limited, a London-based provider of property management, online leasing and resident software solutions. The platform serves market-leading clients in the United Kingdom, European Union and Australia that manage private rental sector (PRS) and student rental housing properties. Industry experts believe that the PRS market will be the fastest-growing sector of the rental housing economy in the UK over the next 10 years. RealPage believes PEX will help secure a leading market position in the high-growth PRS segment of rental housing in the UK and serve as a launching pad for expansion into the European Union.

RealPage Inc. is a provider of technology to the real estate industry, helping owners, managers and investors. The Company’s property management solutions are referred to as Enterprise Resource Planning systems. Its on demand platform provides a single point of access and a repository of real-time lease transaction data, including prospect, renter and property data. You can read more about the company on their website.

RealPage Stock Chart

Large players volume has exploded higher while the price of RealPage stock has chopped out and moved sideways. The Twiggs Money Flow confirms the large players volume and suggests the stock is being accumulated.

RealPage stock presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a good opportunity for an entry. There is a resistance zone just above the current price starting at $44.19. Right above this resistance zone may be a good entry point. There is a support zone below the current price at $42.01, a stop order could be placed below this zone (you may want to use a mental stop order per this stock trading lesson on institutional traders). We notice that large players showed an interest for RP in the last couple of days, which is a good sign.

RealPage Inc Review
2.8

Summary

Profitability

RP's Return On Assets of 2.13% is among the best of the industry. RP does better than the industry average Return On Assets of -1.00%. RP has a Profit Margin of 4.25%. This is better than the industry average of -2.42%. RP has a good Piotroski-F score of 7. This indicates a good health and good profitability for RP. RP's Return On Equity of 5.20% is worse than the rest of the industry. The industry average Return On Equity is 13.27%. 80% of the industry peers have a better Return On Equity.

Valuation

When comparing the current price to the book value of RP, we can conclude it is valued correctly. It is trading at 7.30 times its book value. With a Price/Earnings Ratio of 135.86, RP can be considered very expensive at the moment. Compared to an average industry Price/Earning Ratio of 40.19, RP is valued more expensive than its industry peers. On top of this 90% of the companies listed in the same industry are cheaper than RP! The Forward Price/Earnings Ratio of 58.03 indicates a quite expensive current valuation of RP. The high PEG Ratio, which compensates the Price/Earnings for growth, indicates RP does not grow enough to justify the current Price/Earnings ratio. When comparing the price book ratio of RP to the average industry price book ratio of 4.67, RP is valued more expensive than its industry peers. When comparing the Enterprise Value to EBITDA ratio of RP to the average industry ratio of 21.36, RP is valued more expensive than its industry peers.

Growth

RP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 3246.39%, which is quite impressive. Measured over the past 5 years, RP shows a very strong growth in Earnings Per Share. The EPS has been growing by 35.91% on average per year. Based on estimates for the next 2 years, RP will show a very strong growth in Earnings Per Share. The EPS will grow by 88.50% on average per year. Looking at the last year, RP shows a quite strong growth in revenue. Revenue has grown by 18.83% in the last year. RP shows quite a strong growth in revenue. Measured over the last 5 years, revenue has been growing by 13.66% yearly.

Health

An Altman-Z score of 3.77 indicates that RP is not in any danger for bankruptcy at the moment. The Piotroski-F score of RP is 7. This is a strong score and indicates good health and profitability for RP. RP has a Current Ratio of 1.87. This is a normal value and indicates that RP is financially healthy and should not expect problems in meeting its short term obligations. RP has a Current Ratio comparable to the industry average, which is at 1.72. A Quick Ratio of 1.87 indicates that RP should not have too much problems paying its short term obligations. RP has a Quick Ratio comparable to the industry average, which is at 1.68. RP has a Altman-Z score comparable to the industry average, which is at 3.78. Compared to an average industry Debt to Equity Ratio of 0.00, RP is a more dependent on financing than its industry peers.

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Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on GuerillaStockTrading.com unless specifically stated in the article. Owner of GuerillaStockTrading.com. Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.
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Author: Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on GuerillaStockTrading.com unless specifically stated in the article. Owner of GuerillaStockTrading.com. Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.

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