RPM.AX stock plunged -38.18% to A$0.034 on the ASX at market close on 27 Feb 2026 after heavy selling and a volume spike of 2,526,262 shares. The drop follows the company’s recent earnings update and leaves the share price well below the 50-day average of A$0.05494 and the 200-day average of A$0.06009. Traders saw a relative volume surge of 13.85x, signalling forced liquidation or stop‑loss activity. We review the earnings drivers, technicals, Meyka AI grade, forecast scenarios, and key risks for investors.

RPM.AX stock performance today

RPM Automotive Group Limited (RPM.AX) closed at A$0.034 on the ASX, down 38.18% from the previous close of A$0.055. The intraday range was A$0.034–A$0.037 and trading volume reached 2,526,262 versus an average of 529,515. Market cap is about A$10,079,643.00, with shares outstanding of 272,422,777.

Earnings, fundamentals and why the price moved

RPM reported EPS of A$0.02 and a reported PE of 1.85 in recent company data, with the earnings announcement dated 24 Feb 2026. Despite modest revenue per share of A$0.483 and positive free cash flow yield of 35.57%, the market reacted to weaker net income growth and guidance uncertainty. Net income per share TTM is A$0.00718, and the balance sheet shows debt to equity of 0.79, which may have raised investor caution after the update.

Technical picture and sector context

Technically, RPM.AX shows RSI 45.12, ADX 18.57 (no clear trend), and the 50/200 moving averages sit at A$0.05494 and A$0.06009 respectively. The stock is trading below both averages, increasing short-term downside risk. Sector peers in Consumer Cyclical showed mixed performance today, and the Auto – Parts industry remains sensitive to parts demand and retail footfall trends.

Meyka AI rates RPM.AX with a score out of 100

Meyka AI rates RPM.AX with a score of 67.02 out of 100 (Grade B, suggestion: HOLD). This grade factors in S&P 500 benchmark comparison, sector performance, financial growth, key metrics, and analyst consensus. The company score blends attractive value ratios (PB 0.15, PS 0.09) with operational risks such as long cash conversion cycles and negative recent net income growth. These grades are model outputs and not financial advice.

Price targets, Meyka AI forecast and scenarios

Meyka AI’s forecast model projects a monthly level of A$0.040 and a 12‑month projection of A$0.03742. Versus the current price of A$0.034, that implies a model-based upside of 17.65% (monthly) and 10.06% (12‑month). Scenario targets: conservative A$0.020, base A$0.040, and upside to the year high of A$0.071 if earnings momentum returns. Forecasts are projections and not guarantees.

Risks and opportunities for investors

Key risks include thin market liquidity, inventory turnover of 2.74, net debt to EBITDA near 2.96, and sensitivity to retail demand. Opportunities include low valuation multiples (PB 0.15, PS 0.09), niche motorsport and roadside service growth, and positive free cash flow per share of A$0.01546. Short-term trading risk is elevated given the spike in relative volume.

Final Thoughts

RPM.AX stock delivered a sharp one‑day fall of -38.18% to A$0.034 on ASX close 27 Feb 2026, driven by post‑earnings selling and heavy intraday volume. The company shows value metrics such as PB 0.15 and a low PE of 1.85, but operational metrics and recent net income weakness create near-term pressure. Meyka AI’s forecast model projects A$0.03742 for the next 12 months and A$0.040 monthly, implying model-based upside of roughly 10.06% to 17.65% from today’s price. Our Meyka AI grade (B, score 67.02) flags a Hold posture, balancing valuation against execution risk. Traders should weigh limited liquidity and a cash conversion cycle of 137 days before adding positions. Forecasts are model-based projections and not guarantees, so monitor upcoming trading days, earnings follow-ups, and sector flows for clearer signals.

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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.