Rent-A-Center (NASDAQ:RCII) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Monday.
According to Zacks, “Rent-A-Center has underperformed the industry in the past six months, as investors remain concerned about the company’s waning top and bottom lines. In fourth-quarter 2017, the company posted a loss of 41 cents a share wider than the Zacks Consensus Estimate and the year-ago quarterly figure. Top line also slid year over year and came below the consensus mark, for the second straight quarter. Comps also declined but improved sequentially. The company has been witnessing dismal comps in the Core U.S. and Mexico segments for quite some time now. Nevertheless, management intends to focus more on cost containment, improving traffic trends, refranchising program and augmenting cash flow. The company in collaboration with AlixPartners has identified cost savings opportunities. The company is also rationalizing its store base and lowering its debt load. It is exploring strategic and financial alternatives.”
Other analysts also recently issued reports about the company. BidaskClub raised Rent-A-Center from a “sell” rating to a “hold” rating in a research report on Thursday, January 11th. Jefferies Group decreased their target price on Rent-A-Center from $12.00 to $11.00 and set a “hold” rating for the company in a research report on Wednesday, November 1st. Stephens reissued an “equal weight” rating and issued a $5.00 target price (down from $8.00) on shares of Rent-A-Center in a research report on Thursday. Loop Capital set a $8.00 target price on Rent-A-Center and gave the stock a “sell” rating in a research report on Tuesday, October 31st. Finally, Stifel Nicolaus reaffirmed a “hold” rating and issued a $10.50 price target on shares of Rent-A-Center in a report on Wednesday, November 1st. Four analysts have rated the stock with a sell rating, four have assigned a hold rating and two have issued a buy rating to the company. The company currently has a consensus rating of “Hold” and an average price target of $10.07.
Rent-A-Center (NASDAQ:RCII) last issued its quarterly earnings results on Tuesday, February 20th. The company reported ($0.41) EPS for the quarter, missing the Zacks’ consensus estimate of ($0.07) by ($0.34). Rent-A-Center had a net margin of 0.25% and a negative return on equity of 11.30%. The business had revenue of $638.95 million for the quarter, compared to analysts’ expectations of $654.55 million. During the same period in the previous year, the business posted ($0.23) earnings per share. The business’s revenue was down 6.6% compared to the same quarter last year. research analysts anticipate that Rent-A-Center will post 0.4 EPS for the current fiscal year.
Several institutional investors have recently bought and sold shares of RCII. Raymond James Financial Services Advisors Inc. bought a new position in shares of Rent-A-Center in the second quarter worth $120,000. Crossmark Global Holdings Inc. bought a new position in shares of Rent-A-Center in the third quarter worth $132,000. Cubist Systematic Strategies LLC bought a new position in shares of Rent-A-Center in the second quarter worth $132,000. Franklin Resources Inc. bought a new position in shares of Rent-A-Center in the fourth quarter worth $172,000. Finally, Teacher Retirement System of Texas bought a new position in shares of Rent-A-Center in the fourth quarter worth $202,000.
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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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