An issue of Rent-A-Center Inc. (NASDAQ:RCII) debt fell 1% against its face value during trading on Tuesday. The high-yield issue of debt has a 4.75% coupon and will mature on May 1, 2021. The debt is now trading at $83.75 and was trading at $84.00 one week ago. Price moves in a company’s debt in credit markets sometimes predict parallel moves in its stock price.
Separately, Zacks Investment Research downgraded shares of Rent-A-Center from a “hold” rating to a “sell” rating in a report on Monday, August 1st. Three research analysts have rated the stock with a hold rating, three have issued a buy rating and one has assigned a strong buy rating to the stock. Rent-A-Center currently has an average rating of “Buy” and a consensus target price of $22.72.
Shares of Rent-A-Center Inc. (NASDAQ:RCII) opened at 12.63 on Wednesday. Rent-A-Center Inc. has a 52-week low of $9.76 and a 52-week high of $26.26. The firm has a 50-day moving average price of $12.58 and a 200 day moving average price of $13.13. The stock’s market cap is $670.86 million.
Rent-A-Center (NASDAQ:RCII) last posted its earnings results on Wednesday, July 27th. The company reported $0.41 earnings per share for the quarter, missing the consensus estimate of $0.49 by $0.08. The business had revenue of $749.60 million for the quarter, compared to analysts’ expectations of $782.12 million. Rent-A-Center had a positive return on equity of 14.03% and a negative net margin of 27.93%. Rent-A-Center’s revenue for the quarter was down 8.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.50 EPS. Analysts expect that Rent-A-Center Inc. will post $1.73 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 20th. Investors of record on Monday, October 3rd will be paid a dividend of $0.08 per share. This represents a $0.32 annualized dividend and a yield of 2.53%. The ex-dividend date is Thursday, September 29th. Rent-A-Center’s payout ratio is -1.93%.
In other news, CEO Robert Dale Davis purchased 10,000 shares of the business’s stock in a transaction on Monday, August 1st. The shares were bought at an average price of $10.87 per share, with a total value of $108,700.00. Following the completion of the transaction, the chief executive officer now directly owns 131,850 shares in the company, valued at approximately $1,433,209.50. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 3.40% of the company’s stock.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. ClariVest Asset Management LLC purchased a new position in Rent-A-Center during the second quarter valued at approximately $105,000. KCG Holdings Inc. purchased a new position in Rent-A-Center during the second quarter valued at approximately $125,000. Mason Street Advisors LLC purchased a new position in Rent-A-Center during the second quarter valued at approximately $127,000. Mackenzie Financial Corp purchased a new position in Rent-A-Center during the second quarter valued at approximately $132,000. Finally, Panagora Asset Management Inc. purchased a new position in Rent-A-Center during the second quarter valued at approximately $150,000. 98.58% of the stock is currently owned by institutional investors.
Rent-A-Center, Inc is a rent-to-own operator in North America. The Company provides an opportunity to obtain ownership of products, such as consumer electronics, appliances, computers (including tablets), smartphones and furniture (including accessories), under rental purchase agreements. The Company operates in four segments: Core U.S., Acceptance Now, Mexico and Franchising.
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