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Recruiter.com (RCRT) stock has been on our radar since the price gained 70% in three days. With the price now at $3.66 in pre-market, is now a good time to buy?

Recruiter.com Group

RCRT provides online recruitment solutions. The company offers a platform for a performance-based hiring model for permanent and contract employees. Recruiter.com Group serves customers across the United States. The company is disrupting the $120 billion recruiting and staffing industry by combining an AI and Video hiring platform with the world’s largest network of over 27,500 small and independent recruiters. Businesses of all sizes recruit talent faster using their platform, which is powered by virtual teams of recruiters on demand and AI job-matching technology.

Partnership

On December 7th, RCRT partnered with remote hiring startup Deel. Deel recently raised $425 million at a valuation of $5.5 billion. This will help allow Recruiter.com to move into the global markets and broaden outside of the US.

We at Deel, pride ourselves on uncomplicated payroll and compliance for the global workforce and are thrilled to be entering this partnership with Recruiter.com, in order to help companies not only onboard, but fill their open roles seamlessly using their global candidate sourcing solutions and AI software,” said Bianca Sitzer, Partnership Specialist at Deel.

In a world that has seen a work-from-home boom, this partnership could be a leader as the world turns to a work-from-anywhere system. Employees can be in different countries all working remotely together. Recruiter.com is the platform that connects those in search of work with companies looking to fill roles whilst Deel can have employees onboarded in minutes and also handle the payroll side.

Financials

Recruiter.com reported 43% sequential growth for the third quarter of 2021. Revenue is up 341% compared to Q3 2021. This increase was driven primarily by an increase in the company’s Recruiter on Demand business and the introduction of Software Subscriptions. Gross margins improved to 36.8% in the third quarter, up from 32.8% in the second quarter of 2021. The increase in gross margins reflects the shift in the Company’s sales mix to higher growth, higher margin operations.

A high backlog of demand means the company have the opportunity to continue scaling operations and replicate their recent success.

Technicals

The price increased nearly 70% across three days after the partnership was announced, reaching $4.83. Is there room for continuation? The stock looks set to make some higher lows and continue on this momentum. The 200DMA is at $5.92. There is resistance above between $5.35 and $5.65.

We believe that the 200DMA could be reached from the next move and we would expect price to stay above $3.50 on this pullback.

Overview

We are watching RCRT stock closely for this continuation on a technical basis. We think the fundamental side is undervalued. The company only has a market cap of $57M and has a share float of 9 million shares. We believe Recruiter.com has potential for $5+.

AlphaPicks does not own a position in RCRT. To trade shares, register here with our preferred partner, EToro.

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