Research Solutions (NASDAQ:RSSS) has experienced a notable change in its investment outlook, as Wall Street Zen has downgraded its rating from “strong-buy” to “buy” in a research note released on October 7, 2023. This adjustment comes amidst a series of recent evaluations by various financial institutions concerning the company’s stock performance.
Roth Capital has reaffirmed a “buy” rating, establishing a target price of $5.00 per share, while Weiss Ratings has issued a “sell (d-)” rating on October 8, 2023. Currently, one analyst has assigned a “buy” rating, and another has issued a “sell” rating. According to data from MarketBeat, Research Solutions holds a consensus rating of “hold” with a target price also set at $5.00.
Quarterly Earnings Report Highlights Performance
On September 18, 2023, Research Solutions reported its quarterly earnings, revealing earnings per share (EPS) of $0.07, surpassing analysts’ expectations of $0.03 by $0.04. The company recorded a net margin of 2.58% and a return on equity of 10.32%. Revenue for the quarter totaled $12.44 million, slightly below the anticipated $12.51 million. In the same quarter the previous year, the company reported a loss of $0.08 EPS. Analysts predict that Research Solutions is on track to achieve an EPS of $0.05 for the current fiscal year.
Institutional Investment Trends
Recent activity from institutional investors reflects a cautious yet strategic approach to Research Solutions. Evernest Financial Advisors LLC has acquired a new stake in the company valued at approximately $35,000 during the second quarter. Needham Investment Management LLC has increased its holdings by 1.7% in the first quarter, bringing its total to 2,930,000 shares, valued at $7.6 million, following the purchase of an additional 50,000 shares.
Punch & Associates Investment Management Inc. also raised its stake by 1.6%, now owning 2,367,771 shares valued at $6.16 million. Additionally, Vanguard Group Inc. boosted its position by 3.5% in the third quarter, acquiring 1,254,142 shares worth $4.68 million. Dimensional Fund Advisors LP increased its investment by 6.1%, now holding 67,671 shares valued at $252,000. Currently, institutional investors own 33.60% of Research Solutions’ stock.
Research Solutions, Inc. specializes in providing a cloud-based software-as-a-service platform and related services for researchers across corporate, academic, government, and individual sectors in the United States, Europe, and globally. Their Discover platform facilitates search discovery for scientific, technical, and medical articles, offering both basic and advanced search tools.
As the landscape for Research Solutions continues to evolve, stakeholders will be closely monitoring the implications of these ratings and investment trends on the company’s future performance.
