According to Zacks, “Rent-A-Center disappointed investors with its bleak preliminary guidance for third-quarter 2016. The company now expects Core U.S. same store sales to be down nearly 12% in the quarter while Acceptance Now same store sales is estimated to be flat. Core U.S. gross profit is likely to be flat year over year. The company anticipates earnings per share both on the GAAP and non-GAAP basis to be in the range of $0.05 to $0.15 per share. The technical snags and outages after the execution of new point-of-sale system negatively impacted Core sales and compelled management to hold a conservative view. Moreover, Rent-A-Center has been disappointing investors with its top-line performance for the past four consecutive quarters. Accelerated point of sale system rollout, persistent sluggishness across the computers and tablets categories, headwinds across the oil-impacted markets and continued smartphones recast impacted the results.”
Separately, Jefferies Group began coverage on Rent-A-Center in a research note on Thursday, October 13th. They issued a hold rating and a $10.00 price objective on the stock. One equities research analyst has rated the stock with a sell rating, two have given a hold rating, three have issued a buy rating and one has assigned a strong buy rating to the stock. The company has an average rating of Buy and an average price target of $20.90.
Shares of Rent-A-Center (NASDAQ:RCII) opened at 9.26 on Thursday. Rent-A-Center has a 52-week low of $8.00 and a 52-week high of $26.26. The stock’s market cap is $491.85 million. The company’s 50-day moving average price is $11.97 and its 200-day moving average price is $12.80.
Rent-A-Center (NASDAQ:RCII) last announced its quarterly earnings data on Wednesday, July 27th. The company reported $0.41 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.49 by $0.08. Rent-A-Center had a positive return on equity of 14.03% and a negative net margin of 27.93%. The firm earned $749.60 million during the quarter, compared to the consensus estimate of $782.12 million. During the same period last year, the company earned $0.50 EPS. The firm’s revenue for the quarter was down 8.1% compared to the same quarter last year. On average, equities research analysts forecast that Rent-A-Center will post $1.73 earnings per share for the current fiscal year.
The business 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 dividend of $0.08 per share. The ex-dividend date is Thursday, September 29th. This represents a $0.32 annualized dividend and a yield of 3.46%. Rent-A-Center’s dividend payout ratio (DPR) is presently -1.93%.
In related news, CEO Robert Dale Davis bought 10,000 shares of the company’s stock in a transaction on Monday, August 1st. The shares were acquired at an average price of $10.87 per share, with a total value of $108,700.00. Following the transaction, the chief executive officer now owns 131,850 shares of the company’s stock, valued at $1,433,209.50. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Company insiders own 3.40% of the company’s stock.
Several hedge funds have recently bought and sold shares of the company. ClariVest Asset Management LLC acquired a new stake in Rent-A-Center during the second quarter worth $105,000. KCG Holdings Inc. acquired a new stake in Rent-A-Center during the second quarter worth $125,000. Mason Street Advisors LLC acquired a new stake in Rent-A-Center during the second quarter worth $127,000. Mackenzie Financial Corp acquired a new stake in Rent-A-Center during the second quarter worth $132,000. Finally, Panagora Asset Management Inc. acquired a new stake in Rent-A-Center during the second quarter worth $150,000. 98.58% of the stock is owned by hedge funds and other institutional investors.
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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