According to Zacks, “Rent-A-Center’s extensive network of stores helps it penetrate target markets effectively. The company is taking prudent steps to optimize rental merchandise levels in accordance with sales trends. Moreover, management is focusing on a new labor model and supply chain initiative that it believes to generate substantial cost savings in 2016. The company is also concentrating on value-based pricing strategy and focusing on lowering its debt load. These seem inevitable following the company’s dismal second-quarter 2016 results. After registering earnings beat in the five straight quarters, Rent-A-Center succumbed to a negative earnings surprise in the second quarter, which also marks the fourth consecutive sales miss. Both top and bottom lines also declined year over year. Following the murky performance, management lowered its previously issued outlook for 2016.”
Shares of Rent-A-Center (NASDAQ:RCII) opened at 12.86 on Monday. The company’s market cap is $683.07 million. The company’s 50-day moving average price is $12.60 and its 200-day moving average price is $13.13. Rent-A-Center has a 12 month low of $9.76 and a 12 month high of $26.26.
Rent-A-Center (NASDAQ:RCII) last posted its earnings results on Wednesday, July 27th. The company reported $0.41 EPS for the quarter, missing the Zacks’ consensus estimate of $0.49 by $0.08. Rent-A-Center had a negative net margin of 27.93% and a positive return on equity of 14.03%. The business earned $749.60 million during the quarter, compared to analysts’ expectations of $782.12 million. During the same quarter in the prior year, the firm earned $0.50 EPS. Rent-A-Center’s revenue for the quarter was down 8.1% compared to the same quarter last year. Equities analysts forecast that Rent-A-Center will post $1.73 EPS for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 20th. Shareholders of record on Monday, October 3rd will be given a $0.08 dividend. The ex-dividend date of this dividend is Thursday, September 29th. This represents a $0.32 dividend on an annualized basis and a yield of 2.49%. Rent-A-Center’s dividend payout ratio is currently -1.93%.
In other Rent-A-Center news, CEO Robert Dale Davis bought 10,000 shares of Rent-A-Center stock in a transaction on Monday, August 1st. The shares were bought at an average price of $10.87 per share, for a total transaction of $108,700.00. Following the completion of the transaction, the chief executive officer now directly owns 131,850 shares of the company’s stock, valued at $1,433,209.50. The purchase was disclosed in a document filed with the SEC, which is available at the SEC website. 3.40% of the stock is owned by company insiders.
A number of large investors have recently bought and sold shares of the stock. BlackRock Advisors LLC increased its stake in Rent-A-Center by 1.3% in the second quarter. BlackRock Advisors LLC now owns 25,246 shares of the company’s stock worth $310,000 after buying an additional 329 shares in the last quarter. Arizona State Retirement System increased its stake in Rent-A-Center by 1.5% in the second quarter. Arizona State Retirement System now owns 27,600 shares of the company’s stock worth $339,000 after buying an additional 400 shares in the last quarter. New Amsterdam Partners LLC NY increased its stake in Rent-A-Center by 0.8% in the second quarter. New Amsterdam Partners LLC NY now owns 87,279 shares of the company’s stock worth $1,072,000 after buying an additional 675 shares in the last quarter. Profund Advisors LLC increased its stake in Rent-A-Center by 6.1% in the second quarter. Profund Advisors LLC now owns 17,376 shares of the company’s stock worth $213,000 after buying an additional 998 shares in the last quarter. Finally, Wedge Capital Management L L P NC increased its stake in Rent-A-Center by 7.0% in the second quarter. Wedge Capital Management L L P NC now owns 17,922 shares of the company’s stock worth $220,000 after buying an additional 1,167 shares in the last quarter. Institutional investors own 98.58% of the company’s stock.
Rent-A-Center Company Profile
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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