KeyCorp Analysts Cut Earnings Estimates for Rent-A-Center, Inc. (NASDAQ:RCII)

Rent-A-Center, Inc. (NASDAQ:RCII – Get Rating) – Analysts at KeyCorp reduced their Q3 2022 earnings per share estimates for Rent-A-Center in a report released on Thursday, May 5th. KeyCorp analyst B. Thomas now anticipates that the company will post earnings of $1.26 per share for the quarter, down from their prior estimate of $1.35. KeyCorp has a “Overweight” rating and a $44.00 price objective on the stock. KeyCorp also issued estimates for Rent-A-Center’s FY2022 earnings at $4.50 EPS and FY2023 earnings at $5.60 EPS.

Rent-A-Center (NASDAQ:RCII – Get Rating) last issued its earnings results on Wednesday, May 4th. The company reported $0.74 earnings per share for the quarter, topping the consensus estimate of $0.71 by $0.03. The firm had revenue of $1.13 billion for the quarter, compared to analyst estimates of $1.11 billion. Rent-A-Center had a return on equity of 48.47% and a net margin of 1.87%. The firm’s revenue for the quarter was up 9.4% on a year-over-year basis. During the same period last year, the company earned $1.32 earnings per share.

A number of other brokerages have also commented on RCII. Zacks Investment Research lowered Rent-A-Center from a “hold” rating to a “strong sell” rating and set a $24.00 price objective for the company. in a research report on Monday, March 7th. StockNews.com started coverage on Rent-A-Center in a research note on Thursday, March 31st. They issued a “hold” rating on the stock. Finally, Raymond James downgraded Rent-A-Center from a “strong-buy” rating to an “outperform” rating and cut their price objective for the company from $65.00 to $40.00 in a research note on Friday, February 25th. One research analyst has rated the stock with a sell rating, one has issued a hold rating and four have issued a buy rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Buy” and a consensus price target of $48.25.

NASDAQ:RCII opened at $26.45 on Monday. The company has a quick ratio of 0.74, a current ratio of 3.36 and a debt-to-equity ratio of 2.68. Rent-A-Center has a 1-year low of $22.70 and a 1-year high of $67.76. The firm has a market capitalization of $1.56 billion, a price-to-earnings ratio of 20.66 and a beta of 1.55. The stock has a fifty day simple moving average of $25.88 and a 200 day simple moving average of $38.57.

Several hedge funds and other institutional investors have recently made changes to their positions in the company. State Street Corp increased its stake in Rent-A-Center by 5.4% during the 4th quarter. State Street Corp now owns 2,143,826 shares of the company’s stock worth $103,682,000 after acquiring an additional 110,073 shares during the period. Ieq Capital LLC acquired a new stake in shares of Rent-A-Center during the 1st quarter valued at $50,808,000. Fuller & Thaler Asset Management Inc. boosted its holdings 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 acquiring an additional 59,905 shares in the last quarter. Dimensional Fund Advisors LP boosted its holdings 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 acquiring an additional 11,141 shares in the last quarter. Finally, Goldman Sachs Group Inc. boosted its holdings 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 acquiring an additional 80,197 shares in the last quarter. Institutional investors own 81.66% of the company’s stock.

In other news, CEO Mitchell E. Fadel acquired 40,000 shares of Rent-A-Center stock in a transaction dated Tuesday, March 1st. The stock was bought at an average cost of $27.08 per share, with a total value of $1,083,200.00. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 1.50% of the stock is owned by corporate insiders.

The firm also recently declared a quarterly dividend, which was paid on Friday, April 22nd. Shareholders of record on Tuesday, April 5th were issued a $0.34 dividend. The ex-dividend date of this dividend was Monday, April 4th. This represents a $1.36 annualized dividend and a dividend yield of 5.14%. Rent-A-Center’s dividend payout ratio (DPR) is currently 106.25%.

Rent-A-Center Company Profile (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.

Featured Stories