RDY.AX stock plunged 27.17% pre-market to A$1.26 on 28 Feb 2026 after ReadyTech Holdings Limited (ASX) reported a revenue miss in its 1H FY26 presentation. The move followed a 1D change of -29.77% and a spike in volume to 140,616 shares versus average daily volume 41,511, signalling heavy selling interest. Investors are pricing the miss against a negative EPS of -0.13 and a trailing PE of -9.35. We examine the drivers behind the drop, valuation metrics, technical signals, and what Meyka AI’s model now projects for RDY.AX stock

RDY.AX stock price action and news trigger

ReadyTech Holdings Limited (RDY.AX) fell after the company missed revenue expectations in its 1H FY26 update and earnings call, cited in recent coverage by Investing.com. The slide shows slower sales during a business transition and triggered the steep pre-market fall to A$1.26. Read the detailed slides and call transcript here: ReadyTech 1H FY26 slides: revenue misses forecast amid transition and Earnings call transcript: ReadyTech misses revenue forecast.

RDY.AX stock valuation and key financials

On the ASX, RDY.AX has a market cap of A$150.13M and shares outstanding 123,564,107. Key ratios show price-to-sales 1.23, price-to-book 1.06, and negative PE -9.35 driven by an EPS of -0.13. Free cash flow yield is 15.28% and debt-to-equity is 0.43, suggesting the business still generates cash despite a negative net income margin of -13.25%.

Technicals and trading signals for RDY.AX stock

Technicals show a bearish tilt: RSI 35.73, ADX 50.61 signalling a strong downtrend, and MACD histogram negative. Price sits below 50-day and 200-day averages (A$2.32, A$2.30). On high relative volume (relVolume 15.66), short-term momentum and volatility indicators point to elevated trade risk for intraday and swing traders.

Meyka AI grade and model outlook for RDY.AX

Meyka AI rates RDY.AX with a score out of 100: 70.01 / B+ (BUY). This grade factors in S&P 500 benchmark comparison, sector performance, financial growth, key metrics, and analyst consensus. Meyka AI’s forecast model projects a monthly target A$1.06, a quarterly target A$1.46, and a yearly target A$1.50, compared with the current price A$1.26. These model outputs are probabilistic and not guarantees. The model flags revenue momentum and margin recovery as the main upside drivers.

Sector context and comparative risks

ReadyTech sits in the Technology sector on the ASX where the average PE is about 37.15. RDY.AX’s negative earnings contrast with sector profitability, increasing valuation risk. Key hazards include slower SaaS adoption in education and government verticals, integration costs from transitions, and receivables or contract timing that can hit short-term cash metrics.

Analyst reaction, price targets and trading notes

Recent third-party rating shows a C+ company rating with a Sell recommendation dated 26 Feb 2026, reflecting mixed DCF and profitability scores. Short-term price targets from Meyka’s model put a near-term downside to A$1.06 (monthly) and a recovery scenario of A$1.46 (quarterly). Traders should note high intraday volatility and low current ratio 0.81 as liquidity watch points.

Final Thoughts

RDY.AX stock fell sharply pre-market on 28 Feb 2026 after ReadyTech reported a revenue shortfall that widened investor uncertainty. The immediate picture shows the share price at A$1.26, a negative trailing PE of -9.35, and elevated volume of 140,616 shares. Meyka AI’s forecast model projects a monthly level of A$1.06 (implied downside -15.87%) and a quarterly level of A$1.46 (implied upside +15.87%) versus the current price. Meyka AI’s forecast model projects these targets based on cash flow, sector momentum, and recent earnings flow. The model-based outlook implies that near-term downside is plausible if revenue trends continue, while a recovery to ~A$1.46 is possible with margin improvement and contract renewals. Forecasts are model-based projections and not guarantees. Investors should weigh the risk of continued near-term weakness against potential medium-term recovery if ReadyTech restores sales momentum and stabilises margins. For the latest price and tools, see the Meyka stock page for RDY.AX for live updates and alerts

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Disclaimer:

Stock markets involve risks. This content is for informational purposes only. Past performance does not guarantee future results. Meyka AI PTY LTD provides market analysis and data insights, not financial advice. Always conduct your own research and consider consulting a licensed financial advisor.