REX American Resources Corporation

REX is still in a constructive long-term uptrend, trading above its 200-day moving average and well above the 52-week low. The setup is not extended to the old highs, but it has spent enough time above the long-term trend line to suggest a stable base rather than a broken chart.

Street sentiment leans positive, with a Buy consensus and a $60 target that sits well above the last close. The latest visible change was a Truist downgrade from Buy to Hold in June 2024, but the published target path has stayed anchored at $60, signaling continued upside interest.

The earnings profile is strong: REX has beaten in 6 of the last 7 reported quarters, including a 457.9% EPS surprise in the latest quarter. Next-year EPS estimates point to $3.00 versus $3.69 TTM EPS, so shareholders should watch whether ethanol margins and volume hold up after the recent run of outsized beats.

Recent insider activity tilts negative on discretionary trades, led by two open-market sales from Executive Chairman Stuart A. Rose totaling about $3.70 million. The other June 15 transactions are award grants, which are routine compensation flows rather than a conviction signal.

Profitability is solid, with a 17.6% net margin, 20.2% operating margin, and 21.5% gross margin. Growth is strong too, with revenue up 17.9% year over year and EPS growth of 390.2%, while the balance sheet remains net cash positive by $354.5 million.

REX looks like a profitable niche ethanol operator with better cash generation than many cyclical industrial peers, supported by a 13.25% FCF yield and low beta of 0.628. At 11.6x earnings, it trades at a modest valuation versus a business still producing double-digit margins.