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Latest Quarter Fell Short of Minimum Earnings Guideline - Monday, May 6, 2019
Realpage Inc (RP -$0.29 or -0.46% to $63.21) was highlighted in yellow with pivot point cited based on its 4/30/19 high in the earlier mid-day report (read here). Its 50-day moving average (DMA) line ($61.97) defines important near-term support.
It reported earnings +8% on +16% sales revenues for the Mar '19 quarter after today's close, below the +25% minimum earnings guideline (C criteria), raising fundamental concerns. Members were reminded - "Volume and volatility often increase near earnings news."
The Dec '18 earnings +50% on +21% sales revenues versus the year ago period marked its 4th strong quarterly comparison above the +25% minimum guideline (C criteria). Annual earnings (A criteria) have improved since a downturn in FY '14. Completed a new Public Offering on 5/24/18.
It is perched near its 52-week high after a deep 7-month cup-with-handle shaped base. Very little resistance remains due to overhead supply. Subsequent gains above the pivot point backed by heavy volume may trigger a technical buy signal. However, the fundamental concerns raised by its latest earnings report may inspire disciplined investors to wait for another strong buy candidate without flaws.
The number of top-rated funds owning its shares fell from 498 in Sep '18 to 480 in Mar '19, however, its current Up/Down Volume Ratio of 1.4 is an unbiased indication its shares have been under accumulation over the past 50 days. Its small supply of only 70.2 million shares in the public float (S criteria) can contribute to greater price volatility in the event of institutional buying or selling.
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