Rent-A-Center (NASDAQ:RCII) Trading 16.1% Higher After Better-Than-Expected Earnings

Rent-A-Center, Inc. (NASDAQ:RCIIGet Rating)’s stock price traded up 16.1% during mid-day trading on Thursday following a stronger than expected earnings report. The stock traded as high as $29.52 and last traded at $29.52. 6,891 shares traded hands during mid-day trading, a decline of 99% from the average session volume of 658,259 shares. The stock had previously closed at $25.43.

The company reported $1.15 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.02 by $0.13. Rent-A-Center had a net margin of 1.87% and a return on equity of 48.47%. During the same period in the previous year, the business posted $1.63 earnings per share.

Rent-A-Center Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, July 12th. Stockholders of record on Tuesday, June 21st were given a $0.34 dividend. The ex-dividend date was Friday, June 17th. This represents a $1.36 annualized dividend and a dividend yield of 4.72%. Rent-A-Center’s payout ratio is presently 106.25%.

Wall Street Analyst Weigh In

RCII has been the subject of several research reports. Stephens cut shares of Rent-A-Center from an “overweight” rating to an “equal weight” rating and set a $42.00 price target for the company. in a research report on Wednesday, June 29th. StockNews.com cut shares of Rent-A-Center from a “buy” rating to a “hold” rating in a research report on Tuesday. Two investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $52.75.

Insider Buying and Selling

In other news, Director Jeffrey J. Brown acquired 1,223 shares of Rent-A-Center stock in a transaction that occurred on Tuesday, July 12th. The stock was purchased at an average price of $20.69 per share, for a total transaction of $25,303.87. Following the purchase, the director now directly owns 75,669 shares in the company, valued at approximately $1,565,591.61. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 1.50% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the company. State Street Corp increased its stake in Rent-A-Center by 8.8% during the 1st quarter. State Street Corp now owns 2,333,336 shares of the company’s stock valued at $58,777,000 after purchasing an additional 189,510 shares in the last quarter. Ieq Capital LLC increased its stake in Rent-A-Center by 1.9% during the 2nd quarter. Ieq Capital LLC now owns 2,056,333 shares of the company’s stock valued at $39,995,000 after purchasing an additional 39,330 shares in the last quarter. Fuller & Thaler Asset Management Inc. increased its stake in 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 in the last quarter. Dimensional Fund Advisors LP increased its stake in 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 in the last quarter. Finally, Bank of New York Mellon Corp increased its stake in Rent-A-Center by 1.6% during the 1st quarter. Bank of New York Mellon Corp now owns 898,624 shares of the company’s stock valued at $22,637,000 after purchasing an additional 14,110 shares in the last quarter. Institutional investors own 81.66% of the company’s stock.

Rent-A-Center Price Performance

The company has a debt-to-equity ratio of 2.68, a quick ratio of 0.73 and a current ratio of 3.25. The firm has a market cap of $1.70 billion, a price-to-earnings ratio of 22.52 and a beta of 1.67. The stock’s 50 day simple moving average is $22.95 and its 200-day simple moving average is $27.86.

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.

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