Discover the latest insights on Ree Automotive Holding Inc. as H.C. Wainwright maintains its positive outlook on the stock, following the company's second-quarter financial report. Despite no revenue generation, Ree Automotive showed reduced expenses and losses compared to the previous year.
Ree Automotive's selling, general, and administrative costs decreased by 14% year-over-year to $6.9 million, while research and development expenses fell by 58% to $8.1 million. This led to an improved operating loss of $15.6 million, down from $27.4 million in the same quarter last year.
The company's adjusted EBITDA loss for the quarter was $11.2 million, a significant improvement from $22.0 million in Q2 2023. The net loss stood at $10.8 million, or $0.84 per share, compared to $26.2 million, or $2.61 per share, in the previous year's quarter.
As of June 30, 2024, Ree Automotive had $63.0 million in cash and short-term investments, with debt of $19.0 million. The company also raised $43.3 million in equity financing post-quarter end.
Recent developments include a $45.35 million funding round, strategic partnerships with Motherson Group and Roush Industries, and the initiation of production in the U.S. Ree Automotive's order book saw a 15% increase quarter-over-quarter, now valued at approximately $60 million.
The partnership with Roush will lead to full vehicle assembly in Michigan, starting in Q4 2024. Ree Automotive ended Q2 2024 with liquidity of $60.5 million, including cash, short-term investments, and a $15 million credit facility.
The collaboration with Motherson Group, backed by a $45.35 million direct offering, aims to enhance production capabilities and market presence, especially in the U.S.
Perion Network Ltd. has scheduled its Annual General Meeting of Shareholders for later this year.
InvestingPro Insights
H.C. Wainwright reaffirmed their Buy rating and price target for Ree Automotive. Real-time data from InvestingPro shows the company's market capitalization at $115.4 million. Despite no revenue in the last twelve months, improvements in cost management are evident. Operating income remains negative at -$113.35 million.
One-month and three-month price total returns have surged, indicating growing investor confidence. The stock is trading at 75.68% of its 52-week high, potentially signaling room for growth. Analyst targets average a fair value of $14.5, while InvestingPro's assessment sets it at $4.79.
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