Why Investors Shouldn’t Be Surprised By Rockwell Medical, Inc.’s (NASDAQ:RMTI) 32% Share Price Plunge
Rockwell Medical, Inc. (NASDAQ:RMTI) shares have had a horrible month, losing 32% after a relatively good period beforehand. The recent drop completes a disastrous twelve months for shareholders, who are sitting on a 68% loss during that time.
Following the heavy fall in price, Rockwell Medical may look like a strong buying opportunity at present with its price-to-sales (or “P/S”) ratio of 0.4x, considering almost half of all companies in the Medical Equipment industry in the United States have P/S ratios greater than 2.8x and even P/S higher than 8x aren’t out of the ordinary. However, the P/S might be quite low for a reason and it requires further investigation to determine if it’s justified.
