RPM Should I Buy
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RPM is not a good buy right now for an impatient investor. The stock is in a confirmed short-to-intermediate bearish technical trend (downside momentum still building), there are no Intellectia buy signals today, and insiders have been materially net sellers recently. While options positioning and Congress buying are supportive, and Wall Street is broadly constructive (mostly Buy/Outperform with one notable upgrade), the cleanest edge is still missing at the current price. A better “buy now” setup would be RPM reclaiming the pivot (~109.25) and holding it, which would signal trend stabilization.
Trend/Momentum: Bearish. Moving averages are stacked negatively (SMA_200 > SMA_20 > SMA_5), implying a persistent downtrend across long-, mid-, and short-term horizons. MACD histogram is -0.513 and negatively expanding, indicating downside momentum is strengthening rather than fading. RSI(6) at ~34 is weak and near oversold territory but not yet showing a clear reversal signal. Key levels: Current price 106.1 is sitting just above first support S1 ~105.96 (very nearby). A clean break below S1 increases risk toward S2 ~103.93. Upside resistance starts at the pivot ~109.25, then R1 ~112.55. Near-term pattern odds (provided): Similar-pattern analysis suggests modest short-term weakness next day (-0.32% expected) but positive drift over 1 week (+0.65%) and 1 month (+7.59%). However, given the still-expanding negative MACD and bearish MA stack, the “timing” edge for an immediate entry is not strong.
Intellectia Proprietary Trading Signals
Wall Street remains broadly constructive: multiple Buy/Outperform ratings maintained, and JPMorgan upgraded to Overweight citing valuation and less-bad earnings dynamics.
Management/analyst commentary points to potential stabilization: Citi noted sales deterioration in Oct/Nov has started to reverse in fiscal Q3; RBC views part of Q2 headwinds as transitory and sees cost takeouts.
Potential seasonal/consumer recovery narrative (per RBC).
Congress trading (last 90 days): 6 purchases and 0 sales, with sizable reported amounts (median ~$1.6M), signaling positive political/influential buying interest.
Pattern-based projection provided suggests positive 1-month drift (+7.59%), which aligns with a possible mean-reversion bounce if support holds.
Technicals are decisively bearish: negative MA stack plus expanding negative MACD increases the probability of further downside before any durable rebound.
Insiders are selling: selling amount increased ~343.84% over the last month, a notable near-term negative signal.
Profitability pressure: latest quarter showed EPS and net income declines with gross margin compression.
Analyst price targets have been cut across multiple firms post-Q2, reflecting reduced near-term confidence even as ratings remain mostly positive.
If 105.96 support fails, downside risk opens toward ~103.93 (S
quickly.
Latest quarter (2026/Q2): Revenue grew to ~$1.91B (+3.50% YoY), but profitability weakened: net income fell to ~$160.5M (-12.03% YoY) and EPS fell to 1.26 (-11.27% YoY). Gross margin declined to ~40.85% (-1.40% YoY). Takeaway: top-line is still growing, but margin and earnings compression are the current problem—consistent with the stock’s bearish technical posture.
Recent trend: Price targets have generally moved down (BMO 152→149, RBC 132→126, MS 124→118, Citi 127→125, UBS 127→119, Mizuho 138→128), mostly following a weaker Q2 and lowered FY26 estimates. Ratings, however, remain largely positive (multiple Outperform/Buy) with Morgan Stanley at Equal Weight and JPMorgan upgrading to Overweight. Wall Street pros: (a) Valuation looks more attractive after drawdown, (b) visibility on cost actions, (c) potential seasonal consumer recovery and infrastructure exposure supporting demand. Wall Street cons: (a) Near-term earnings/margins disappointed and estimates are being trimmed, (b) demand softness (DIY/consumer) has been a drag, (c) recovery timing remains the key uncertainty.
