Prescott Group Capital Management L.L.C. Acquires New Holdings in Regional Management Corp. $RM

Prescott Group Capital Management L.L.C. acquired a new stake in Regional Management Corp. (NYSE:RM) in the third quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund acquired 22,285 shares of the credit services provider’s stock, valued at approximately $674,000.

Several other large investors have also made changes to their positions in RM. BlackRock Inc. purchased a new position in shares of Regional Management during the 2nd quarter valued at approximately $47,514,000. Basswood Capital Management L.L.C. acquired a new stake in Regional Management in the 2nd quarter valued at $35,244,000. Tieton Capital Management LLC acquired a new stake in Regional Management in the 2nd quarter valued at $13,112,000. Sei Investments Co. increased its holdings in Regional Management by 117.9% in the 1st quarter. Sei Investments Co. now owns 157,151 shares of the credit services provider’s stock worth $5,068,000 after acquiring an additional 85,040 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership increased its holdings in Regional Management by 2.5% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 108,439 shares of the credit services provider’s stock worth $3,497,000 after acquiring an additional 2,618 shares in the last quarter. 98.89% of the stock is owned by institutional investors and hedge funds.

Regional Management Trading Down 1.3%

Shares of RM stock opened at $38.69 on Wednesday. The stock’s fifty day moving average is $33.03 and its two-hundred day moving average is $35.35. The company has a debt-to-equity ratio of 4.58, a quick ratio of 64.04 and a current ratio of 60.68. The firm has a market capitalization of $346.23 million, a P/E ratio of 7.83 and a beta of 1.08. Regional Management Corp. has a fifty-two week low of $29.89 and a fifty-two week high of $44.29.

Regional Management (NYSE:RM) last released its earnings results on Wednesday, October 28th. The credit services provider reported $1.61 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.47 by $0.14. Regional Management had a net margin of 6.96% and a return on equity of 12.61%. The business had revenue of $178.78 million during the quarter, compared to analyst estimates of $174.69 million.

Regional Management Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, December 16th. Investors of record on Wednesday, November 18th will be given a dividend of $0.30 per share. The ex-dividend date is Wednesday, November 18th. This represents a $1.20 dividend on an annualized basis and a yield of 3.1%. Regional Management’s payout ratio is presently 24.29%.

Analysts Set New Price Targets

A number of equities analysts have weighed in on the stock. Citizens Jmp reduced their price objective on shares of Regional Management from $45.00 to $43.00 and set a “market outperform” rating for the company in a research report on Thursday, July 30th. Citigroup reaffirmed a “market outperform” rating on shares of Regional Management in a report on Thursday, July 30th. Weiss Ratings upgraded shares of Regional Management from a “hold (c)” rating to a “hold (c+)” rating in a research report on Monday. Wall Street Zen raised shares of Regional Management from a “hold” rating to a “buy” rating in a research note on Monday, October 12th. Finally, Stephens boosted their target price on shares of Regional Management from $38.50 to $40.00 and gave the stock an “overweight” rating in a research note on Thursday, October 29th. Three investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $41.50.

Insider Buying and Selling

In other Regional Management news, SVP Catherine R. Atwood sold 2,600 shares of the stock in a transaction dated Thursday, October 29th. The shares were sold at an average price of $37.39, for a total value of $97,214.00. Following the completion of the sale, the senior vice president owned 52,707 shares in the company, valued at approximately $1,970,714.73. This represents a 4.70% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, major shareholder Fund L.P. Forager sold 10,401 shares of the firm’s stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $32.22, for a total transaction of $335,120.22. Following the completion of the transaction, the insider directly owned 919,136 shares in the company, valued at $29,614,561.92. This trade represents a 1.12% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 32,322 shares of company stock worth $1,056,093. 10.90% of the stock is owned by insiders.

About Regional Management

Regional Management Corp. (NYSE: RM) is a consumer finance company that provides credit products to individuals who may have limited access to traditional bank financing. The company primarily offers small and medium-sized installment loans, including secured and unsecured personal loans, through a network of local branches and digital channels.

Its services may also include optional credit-related products, such as insurance and other ancillary offerings associated with consumer lending.