Rent-A-Center Inc. (NASDAQ:RCII) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued on Monday.
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 12.63 on Monday. Rent-A-Center has a 52-week low of $9.76 and a 52-week high of $26.26. The company’s market capitalization is $670.86 million. The stock has a 50 day moving average price of $12.58 and a 200 day moving average price of $13.13.
Rent-A-Center (NASDAQ:RCII) last released its quarterly earnings data on Wednesday, July 27th. The company reported $0.41 earnings per share for the quarter, missing the Thomson Reuters’ 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 had revenue of $749.60 million for the quarter, compared to the consensus estimate of $782.12 million. During the same quarter last year, the firm earned $0.50 EPS. The company’s revenue for the quarter was down 8.1% on a year-over-year basis. On average, analysts predict that Rent-A-Center will post $1.73 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Thursday, October 20th. Shareholders of record on Monday, October 3rd will be paid a $0.08 dividend. This represents a $0.32 annualized dividend and a yield of 2.53%. The ex-dividend date of this dividend is Thursday, September 29th. Rent-A-Center’s payout ratio is -1.93%.
In other news, CEO Robert Dale Davis bought 10,000 shares of the business’s stock in a transaction on Monday, August 1st. The shares were purchased at an average price of $10.87 per share, for a total transaction of $108,700.00. Following the purchase, the chief executive officer now owns 131,850 shares of the company’s stock, valued at approximately $1,433,209.50. The purchase was disclosed in a filing with the SEC, which is available through the SEC website. 3.40% of the stock is owned by company insiders.
A number of large investors have recently added to or reduced their stakes in the stock. Mason Street Advisors LLC purchased a new stake in Rent-A-Center during the second quarter valued at approximately $127,000. Royal Bank of Canada boosted its stake in Rent-A-Center by 1,135.2% in the second quarter. Royal Bank of Canada now owns 42,293 shares of the company’s stock valued at $519,000 after buying an additional 38,869 shares during the last quarter. Public Employees Retirement System of Ohio purchased a new stake in Rent-A-Center during the second quarter valued at approximately $291,000. Sterling Capital Management LLC purchased a new stake in Rent-A-Center during the second quarter valued at approximately $546,000. Finally, Schwab Charles Investment Management Inc. boosted its stake in Rent-A-Center by 64.5% in the second quarter. Schwab Charles Investment Management Inc. now owns 1,009,906 shares of the company’s stock valued at $12,402,000 after buying an additional 396,139 shares during the last quarter. Hedge funds and other 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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