The RMR Group (NASDAQ:RMR) Trading Up 6.1% After Better-Than-Expected Earnings

The RMR Group Inc. (NASDAQ:RMR)’s stock price was up 6.1% during mid-day trading on Thursday following a stronger than expected earnings report. The stock traded as high as $16.59 and last traded at $16.6280. Approximately 93,314 shares were traded during mid-day trading, a decline of 58% from the average daily volume of 220,026 shares. The stock had previously closed at $15.67.

The financial services provider reported $0.20 earnings per share for the quarter, topping analysts’ consensus estimates of $0.18 by $0.02. The business had revenue of $180.42 million for the quarter, compared to the consensus estimate of $214.10 million. The RMR Group had a return on equity of 4.60% and a net margin of 2.48%.

The RMR Group Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, February 19th. Investors of record on Monday, January 26th will be given a $0.45 dividend. This represents a $1.80 annualized dividend and a yield of 10.8%. The ex-dividend date of this dividend is Monday, January 26th. The RMR Group’s dividend payout ratio (DPR) is 171.43%.

Analysts Set New Price Targets

RMR has been the subject of a number of analyst reports. Zacks Research raised shares of The RMR Group from a “strong sell” rating to a “hold” rating in a report on Monday, January 19th. LADENBURG THALM/SH SH assumed coverage on The RMR Group in a research note on Wednesday, January 7th. They issued a “buy” rating and a $17.00 price objective on the stock. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of The RMR Group in a research note on Monday, December 29th. Finally, Wall Street Zen upgraded The RMR Group from a “sell” rating to a “hold” rating in a research note on Monday, December 22nd. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $20.50.

Insider Buying and Selling

In other The RMR Group news, major shareholder Tremont Realty Capital Llc bought 2,015,748 shares of the firm’s stock in a transaction dated Thursday, December 11th. The shares were bought at an average price of $8.65 per share, for a total transaction of $17,436,220.20. Following the completion of the acquisition, the insider owned 4,577,835 shares of the company’s stock, valued at approximately $39,598,272.75. This trade represents a 78.68% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this hyperlink. Corporate insiders own 54.69% of the company’s stock.

Institutional Investors Weigh In On The RMR Group

Several hedge funds and other institutional investors have recently made changes to their positions in RMR. NewEdge Advisors LLC lifted its stake in shares of The RMR Group by 313.1% during the first quarter. NewEdge Advisors LLC now owns 1,483 shares of the financial services provider’s stock valued at $25,000 after acquiring an additional 1,124 shares during the period. New York State Common Retirement Fund raised its holdings in The RMR Group by 538.5% during the 3rd quarter. New York State Common Retirement Fund now owns 1,660 shares of the financial services provider’s stock worth $26,000 after purchasing an additional 1,400 shares during the last quarter. PNC Financial Services Group Inc. lifted its position in The RMR Group by 1,307.1% during the 2nd quarter. PNC Financial Services Group Inc. now owns 1,773 shares of the financial services provider’s stock valued at $29,000 after purchasing an additional 1,647 shares during the period. Quarry LP bought a new position in shares of The RMR Group in the 3rd quarter valued at about $36,000. Finally, State of Alaska Department of Revenue acquired a new stake in shares of The RMR Group during the 4th quarter worth approximately $41,000. 42.31% of the stock is owned by institutional investors and hedge funds.

The RMR Group Stock Performance

The stock’s 50 day moving average is $15.56 and its two-hundred day moving average is $15.81. The firm has a market capitalization of $531.89 million, a P/E ratio of 15.80 and a beta of 0.96. The company has a debt-to-equity ratio of 0.05, a current ratio of 0.25 and a quick ratio of 0.25.

The RMR Group Company Profile

The RMR Group, Inc (NASDAQ: RMR) is a publicly traded asset management company that specializes in providing comprehensive real estate and investment management services to both public and private entities. Acting as an external manager, RMR offers a range of services encompassing property management, asset management, fund administration, accounting, investor relations and compliance oversight. Its client base includes real estate investment trusts (REITs), real estate operating companies (REOCs), closed-end real estate funds and institutional investors.

Founded in 1986, RMR Group has built a business model centered on recurring fee revenue generated through long-term service agreements with its managed entities.