Renren Stock Buy Hold or Sell Recommendation

RENN
 Stock
  

USD 32.41  0.07  0.22%   

Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Renren Inc is 'Strong Buy'. Macroaxis provides Renren buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Renren positions. The advice algorithm takes into account all of Renren's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Renren's buy-and-hold perspective. Additionally, take a look at Renren Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Renren and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Renren Inc.

Execute Renren Buy or Sell Advice

The Renren recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Renren Inc. Macroaxis does not own or have any residual interests in Renren Inc or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Renren's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell RenrenBuy Renren
Strong Buy

Volatility

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Hype Condition

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Current Valuation

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Odds of Distress

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Economic Sensitivity

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Analyst Consensus

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Reporting Quality (M-Score)

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For the selected time horizon Renren Inc has a Risk Adjusted Performance of 0.3335, Jensen Alpha of 0.1678, Total Risk Alpha of 0.1209, Sortino Ratio of 0.1387 and Treynor Ratio of 3.77
Our advice module can be used to complement Renren recommendation provided by average analyst sentiment. It analyzes the firm's potential to grow using fundamental, technical, data market data available at the time. To make sure Renren is not overpriced, please check all Renren Inc fundamentals, including its revenue, cash flow from operations, current asset, as well as the relationship between the cash per share and beta . Given that Renren Inc has a number of shares shorted of 112.62 K, we recommend you to check out Renren Inc market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your recent risk tolerance and investing horizon.

Renren Trading Alerts and Improvement Suggestions

The company reported the previous year's revenue of 32.22 M. Net Loss for the year was (103.41 M) with profit before overhead, payroll, taxes, and interest of 25.38 M.
Renren Inc currently holds about 56.83 M in cash with (18.11 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.26.
Roughly 12.0% of the company outstanding shares are owned by corporate insiders

Renren Returns Distribution Density

The distribution of Renren's historical returns is an attempt to chart the uncertainty of Renren's future price movements. The chart of the probability distribution of Renren stock daily returns describes the distribution of returns around its average expected value. We use Renren Inc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Renren returns is essential to provide solid investment advice for Renren.
Mean Return0.18Value At Risk-0.96
Potential Upside1.45Standard Deviation0.79
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Renren historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Renren Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Renren is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Renren Inc backward and forwards among themselves. Renren's institutional investor refers to the entity that pools money to purchase Renren's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Wolverine Trading LlcCommon Shares14.8 K318 K
Wolverine Trading LlcPut Options23.2 K499 K
Wolverine Trading LlcCall Options45.4 K976 K
Wolverine Trading LlcCommon Shares29 K244 K
Wolverine Trading LlcCommon Shares29 K244 K
Wolverine Trading LlcCommon Shares18.9 K169 K
Wolverine Trading LlcCommon Shares36.7 K225 K
Wolverine Trading LlcCommon Shares19.9 K156 K
Note, although Renren's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Renren Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Renren or Specialty Retail sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Renren's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Renren stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
0.17
β
Beta against NYSE Composite0.0457
σ
Overall volatility
0.79
Ir
Information ratio 0.1

Renren Volatility Alert

Renren Inc exhibits very low volatility with skewness of 1.12 and kurtosis of 2.75. However, we advise investors to further study Renren Inc technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Renren's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Renren's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Renren Fundamentals Vs Peers

Comparing Renren's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Renren's direct or indirect competition across all of the common fundamentals between Renren and the related equities. This way, we can detect undervalued stocks with similar characteristics as Renren or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Renren's fundamental indicators could also be used in its relative valuation, which is a method of valuing Renren by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Renren to competition
FundamentalsRenrenPeer Average
Return On Equity(0.37) %(0.31) %
Return On Asset(0.07) %(0.14) %
Profit Margin(1.50) %(1.27) %
Operating Margin(0.54) %(5.51) %
Current Valuation752.89 M16.62 B
Shares Outstanding24.92 M571.82 M
Shares Owned by Insiders12.25 %10.09 %
Shares Owned by Institutions28.65 %39.21 %
Number of Shares Shorted112.62 K4.71 M
Price to Earning58.28 X28.72 X
Price to Book5.48 X9.51 X
Price to Sales21.00 X11.42 X
Revenue32.22 M9.43 B
Gross Profit25.38 M27.38 B
EBITDA13.07 M3.9 B
Net Income(103.41 M)570.98 M
Cash and Equivalents56.83 M2.7 B
Cash per Share2.26 X5.01 X
Total Debt374 K5.32 B
Debt to Equity0.002 %48.70 %
Current Ratio1.93 X2.16 X
Book Value Per Share5.91 X1.93 K
Cash Flow from Operations(18.11 M)971.22 M
Short Ratio1.36 X4.00 X
Earnings Per Share0.56 X3.12 X
Target Price1.7
Number of Employees40918.84 K
Beta1.05-0.15
Market Capitalization809.35 M19.03 B
Total Asset170.18 M29.47 B
Retained Earnings(357.39 M)9.33 B
Working Capital195.19 M1.48 B
Current Asset403.94 M9.34 B

Renren Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Renren . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Renren Buy or Sell Advice

When is the right time to buy or sell Renren Inc? Buying financial instruments such as Renren Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Renren in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Trading Thematic Idea Now

Trading
Trading Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Trading theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Trading Theme or any other thematic opportunities.
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Additionally, take a look at Renren Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try CEO Directory module to screen CEOs from public companies around the world.

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When running Renren Inc price analysis, check to measure Renren's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Renren is operating at the current time. Most of Renren's value examination focuses on studying past and present price action to predict the probability of Renren's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Renren's price. Additionally, you may evaluate how the addition of Renren to your portfolios can decrease your overall portfolio volatility.
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Is Renren's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Renren. If investors know Renren will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Renren listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
(0.63) 
Market Capitalization
809.3 M
Quarterly Revenue Growth YOY
0.42
Return On Assets
(0.07) 
Return On Equity
(0.37) 
The market value of Renren Inc is measured differently than its book value, which is the value of Renren that is recorded on the company's balance sheet. Investors also form their own opinion of Renren's value that differs from its market value or its book value, called intrinsic value, which is Renren's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Renren's market value can be influenced by many factors that don't directly affect Renren's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Renren's value and its price as these two are different measures arrived at by different means. Investors typically determine Renren value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Renren's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.