Rent-A-Center, Inc. (NASDAQ:RCII) Receives Average Rating of “Buy” from Brokerages

Shares of Rent-A-Center, Inc. (NASDAQ:RCIIGet Rating) have been assigned an average rating of “Buy” from the seven brokerages that are covering the firm, Marketbeat.com reports. One equities research analyst has rated the stock with a sell rating, one has issued a hold rating and five have issued a buy rating on the company. The average 12 month price objective among brokers that have issued a report on the stock in the last year is $53.00.

RCII has been the topic of a number of research analyst reports. Raymond James cut Rent-A-Center from a “strong-buy” rating to an “outperform” rating and lowered their price target for the stock from $65.00 to $40.00 in a report on Friday, February 25th. Zacks Investment Research cut Rent-A-Center from a “hold” rating to a “strong sell” rating and set a $24.00 price target on the stock. in a report on Monday, March 7th. KeyCorp lowered their price target on Rent-A-Center from $68.00 to $44.00 and set an “overweight” rating on the stock in a report on Friday, February 25th. Finally, StockNews.com assumed coverage on Rent-A-Center in a research note on Thursday, March 31st. They issued a “hold” rating on the stock.

RCII stock opened at $24.99 on Friday. Rent-A-Center has a twelve month low of $22.70 and a twelve month high of $67.76. The company has a quick ratio of 0.74, a current ratio of 3.36 and a debt-to-equity ratio of 3.06. The stock has a market cap of $1.48 billion, a P/E ratio of 12.50 and a beta of 1.63. The business’s 50-day moving average price is $29.58 and its 200-day moving average price is $41.90.

Rent-A-Center (NASDAQ:RCIIGet Rating) last posted its quarterly earnings results on Wednesday, February 23rd. The company reported $1.08 EPS for the quarter, missing the Zacks’ consensus estimate of $1.58 by ($0.50). Rent-A-Center had a return on equity of 50.75% and a net margin of 2.94%. The business had revenue of $1.17 billion during the quarter, compared to analysts’ expectations of $1.20 billion. During the same period in the prior year, the firm posted $1.03 earnings per share. The firm’s revenue for the quarter was up 63.5% on a year-over-year basis. On average, equities research analysts expect that Rent-A-Center will post 4.72 earnings per share for the current fiscal year.

The company also recently disclosed a quarterly dividend, which will be paid on Friday, April 22nd. Shareholders of record on Tuesday, April 5th will be paid a $0.34 dividend. This represents a $1.36 dividend on an annualized basis and a yield of 5.44%. The ex-dividend date of this dividend is Monday, April 4th. Rent-A-Center’s payout ratio is 68.00%.

In related news, CEO Mitchell E. Fadel bought 40,000 shares of the business’s stock in a transaction dated Tuesday, March 1st. The shares were purchased at an average price of $27.08 per share, with a total value of $1,083,200.00. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 1.50% of the company’s stock.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. State Street Corp increased its position in shares of Rent-A-Center by 5.4% during the 4th quarter. State Street Corp now owns 2,143,826 shares of the company’s stock valued at $103,682,000 after purchasing an additional 110,073 shares during the last quarter. Fuller & Thaler Asset Management Inc. increased its position in shares of Rent-A-Center by 3.1% during the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 1,976,736 shares of the company’s stock valued at $94,962,000 after purchasing an additional 59,905 shares during the last quarter. Dimensional Fund Advisors LP increased its position in shares of Rent-A-Center by 0.9% during the 4th quarter. Dimensional Fund Advisors LP now owns 1,216,493 shares of the company’s stock valued at $58,443,000 after purchasing an additional 11,141 shares during the last quarter. Goldman Sachs Group Inc. increased its position in shares of Rent-A-Center by 7.5% during the 3rd quarter. Goldman Sachs Group Inc. now owns 1,143,560 shares of the company’s stock valued at $64,280,000 after purchasing an additional 80,197 shares during the last quarter. Finally, Bank of New York Mellon Corp increased its position in shares of Rent-A-Center by 0.8% during the 3rd quarter. Bank of New York Mellon Corp now owns 1,138,126 shares of the company’s stock valued at $63,974,000 after purchasing an additional 8,878 shares during the last quarter. 76.20% of the stock is currently owned by hedge funds and other institutional investors.

About Rent-A-Center (Get Rating)

Rent-A-Center, Inc, together with its subsidiaries, leases household durable goods to customers on a lease-to-own basis. The company operates in four segments: Rent-A-Center Business, Acima, Mexico, and Franchising. It offers furniture and accessories, appliances, consumer electronics, computers, tablets and smartphones, tools, tires, handbags, and other accessories under rental purchase agreements.

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Analyst Recommendations for Rent-A-Center (NASDAQ:RCII)

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