Rent the Runway, Inc. (NASDAQ:RENT) Sees Large Growth in Short Interest

Rent the Runway, Inc. (NASDAQ:RENT) saw a significant increase in short interest during the month of September. As of September 15th, there was short interest totalling 270,200 shares, an increase of 56.8% from the August 31st total of 172,300 shares. Based on an average daily trading volume, of 85,400 shares, the days-to-cover ratio is presently 3.2 days. Approximately 14.9% of the shares of the company are sold short.

Insider Transactions at Rent the Runway

In other news, CEO Jennifer Hyman sold 4,544 shares of the stock in a transaction that occurred on Monday, August 5th. The stock was sold at an average price of $11.96, for a total value of $54,346.24. Following the completion of the sale, the chief executive officer now directly owns 154,215 shares of the company’s stock, valued at $1,844,411.40. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders sold a total of 18,187 shares of company stock worth $195,670 over the last three months. 6.60% of the stock is currently owned by insiders.

Institutional Trading of Rent the Runway

Several large investors have recently made changes to their positions in RENT. CastleKnight Management LP increased its position in Rent the Runway by 304.9% in the 4th quarter. CastleKnight Management LP now owns 545,800 shares of the company’s stock valued at $288,000 after acquiring an additional 411,000 shares in the last quarter. Nisa Investment Advisors LLC bought a new position in Rent the Runway in the 2nd quarter worth approximately $308,000. XTX Topco Ltd acquired a new position in Rent the Runway during the 2nd quarter worth $293,000. Susquehanna Fundamental Investments LLC bought a new position in Rent the Runway in the 2nd quarter valued at $227,000. Finally, Cubist Systematic Strategies LLC acquired a new stake in shares of Rent the Runway in the 2nd quarter valued at $131,000. Institutional investors own 73.10% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on RENT shares. JMP Securities increased their target price on shares of Rent the Runway from $20.00 to $40.00 and gave the company a “market outperform” rating in a research note on Friday, June 7th. Jefferies Financial Group decreased their price objective on Rent the Runway from $34.00 to $26.00 and set a “buy” rating on the stock in a report on Friday, September 6th. Three equities research analysts have rated the stock with a hold rating and four have given a buy rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $25.86.

Rent the Runway Stock Performance

RENT opened at $9.93 on Friday. Rent the Runway has a twelve month low of $4.46 and a twelve month high of $41.81. The firm has a market cap of $36.46 million, a price-to-earnings ratio of -0.33 and a beta of 1.08. The firm’s 50-day simple moving average is $12.11 and its 200-day simple moving average is $14.86.

Rent the Runway (NASDAQ:RENT) last posted its earnings results on Thursday, September 5th. The company reported ($4.17) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($5.86) by $1.69. The firm had revenue of $78.90 million during the quarter, compared to the consensus estimate of $76.60 million. During the same quarter last year, the firm posted ($8.00) EPS. As a group, sell-side analysts anticipate that Rent the Runway will post -19.08 EPS for the current fiscal year.

About Rent the Runway

Rent the Runway, Inc operates shared designer closet in the United States. The company offers evening wear and accessories, ready-to-wear, workwear, denim, casual, maternity, outerwear, blouses, knitwear, loungewear, jewelry, handbags, activewear, and ski wear under subscription, rental, and resale offering.