Last Updated: 16 Sep 2024
Executive Summary
Reservoir Media Inc. (RSVR) is a music rights company that acquires, manages, and exploits music copyrights. The company has a market capitalization of $502.4 million and is traded on the NASDAQ exchange. Reservoir Media's latest stock price is $7.72, which is within its 52-week range of $5.26 to $9.21. The company has a strong financial position with positive EBITDA and operating margin. However, it is not yet profitable on a GAAP basis. Analysts have a Buy rating on the stock with an average price target of $12.50.
Company Overview
Reservoir Media was founded in 2007 and is headquartered in New York City. The company's catalog includes over 140,000 songs and 26,000 master recordings. Reservoir Media's clients include artists, songwriters, publishers, and record labels. The company generates revenue from music streaming, downloads, and physical sales, as well as from synchronization licenses and other sources.
Fundamental Analysis
Reservoir Media's financial performance has been improving in recent years. In the fiscal year ended March 2023, the company reported revenue of $147.3 million, up 7.8% year-over-year. EBITDA was $55 million, up 12.5% year-over-year. The company's operating margin was 14.5%, up from 12.8% in the prior year.
Reservoir Media is not yet profitable on a GAAP basis. The company reported a net loss of $11.4 million in the fiscal year ended March 2023. However, the company's adjusted EBITDA was positive, indicating that it is generating cash from its operations.
Technical Analysis
Reservoir Media's stock price has been trending higher in recent months. The stock broke out of a resistance level at $7.50 in early August and has since rallied to $7.72. The stock is now trading above its 50-day and 200-day moving averages.
The technical indicators are bullish for Reservoir Media. The relative strength index (RSI) is above 50, indicating that the stock is not overbought. The moving average convergence divergence (MACD) is also bullish, indicating that the stock is in a uptrend.
Short Term Outlook
Reservoir Media's stock is expected to continue to trend higher in the short term. The company's financial performance is improving, and the technical indicators are bullish. The stock is trading above its key moving averages and is not overbought.
Long Term Outlook
Reservoir Media is a well-positioned company in the music industry. The company has a strong catalog of songs and master recordings, and it is generating revenue from a variety of sources. The company is also expected to benefit from the continued growth of the music streaming market.
Analyst Recommendations
Analysts have a Buy rating on Reservoir Media with an average price target of $12.50. The analysts believe that the company's strong financial performance and positive long-term outlook make it a good investment.
