Last Updated: 19 Sep 2024
Executive Summary
Reliance Global Group Inc. (RELI) is a small-cap insurance brokerage firm with a market capitalization of $3.38 billion. The company has been struggling financially in recent quarters, with negative earnings and a high debt load. The stock price has fallen significantly in the past year, and it is currently trading at $2.60 per share.
Company Overview
Reliance Global Group is headquartered in Lakewood, New Jersey. The company acquires and manages wholesale and retail insurance agencies in the United States. The company's target market is small and mid-sized businesses. Reliance Global Group has a network of over 1,000 independent agents and brokers.
Fundamental Analysis
Reliance Global Group's financial performance has been weak in recent quarters. The company reported a net loss of $26.5 million in the first half of 2023, compared to a net loss of $15.6 million in the first half of 2022. The company's revenue has also declined in recent quarters. In the first half of 2023, Reliance Global Group reported revenue of $139.1 million, compared to revenue of $140.3 million in the first half of 2022.
Reliance Global Group's financial leverage is high. The company's debt-to-equity ratio is 1.5, which is above the industry average. The company's interest expense is also high, which is a drag on earnings.
Technical Analysis
The technical analysis of Reliance Global Group's stock price is bearish. The stock price has been in a downtrend since early 2023. The stock price is currently below its 50-day and 200-day moving averages. The relative strength index (RSI) is also below 30, which indicates that the stock is oversold.
Short Term Outlook
The short-term outlook for Reliance Global Group is negative. The company's financial performance is weak, and the stock price is in a downtrend. The stock price is likely to continue to decline in the short term.
Long Term Outlook
The long-term outlook for Reliance Global Group is uncertain. The company's financial performance has been weak in recent quarters, but the company has a strong market position. The company's long-term outlook will depend on its ability to improve its financial performance.
Analyst Recommendations
The majority of analysts have a "hold" rating on Reliance Global Group's stock. The average analyst target price is $7.00 per share.
