Stock Rating Downgrade
Reflecting eroding fundamentals and low Appreciation Potential, the Value Trend Rating for Red Robin Gourmet Burgers Inc (NASDAQ: RRGB) weakened recently. RRGB’s current Value Trend Rating is D and the prior Rating was C. Details supporting this lower rating are included in our next report.
Recent Price Action
Red Robin Gourmet Burgers Inc (NASDAQ: RRGB) stock closed at $10.32 on 7/1/20 after an increase of 1.2%. Moreover, unusually high trading volume at 155% of normal accompanied the advance. The stock has declined -12.1% during the last week and has been extremely weak relative to the market over the last nine months.
Current PriceTarget Research Rating
RRGB is expected to continue to be a major Value Eraser reflecting capital returns that are forecasted to be below the cost of capital.
RRGB has a current Value Trend Rating of D (Negative). The Value Trend Rating reflects very contradictory signals from PTR’s two proprietary measures of a stock’s attractiveness. RRGB has a good Appreciation Score of 79 but a very low Power Rating of 1, leading to the Negative Value Trend Rating.