The RMR Group (NASDAQ:RMR) Shares Up 6.1% Following Earnings Beat

The RMR Group Inc. (NASDAQ:RMR)’s share price rose 6.1% 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 changed hands 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 (EPS) for the quarter, beating the consensus estimate of $0.18 by $0.02. The firm had revenue of $180.42 million during the quarter, compared to the consensus estimate of $214.10 million. The RMR Group had a return on equity of 4.04% and a net margin of 3.52%.

The RMR Group Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, February 19th. Investors of record on Monday, January 26th will be given a dividend of $0.45 per share. The ex-dividend date is Monday, January 26th. This represents a $1.80 annualized dividend and a yield of 10.7%. The RMR Group’s dividend payout ratio is 171.43%.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on RMR shares. Weiss Ratings reiterated a “sell (d+)” rating on shares of The RMR Group in a research report on Monday, December 29th. LADENBURG THALM/SH SH started coverage on shares of The RMR Group in a research report on Wednesday, January 7th. They issued a “buy” rating and a $17.00 price objective for the company. Wall Street Zen upgraded The RMR Group from a “sell” rating to a “hold” rating in a research report on Monday, December 22nd. Finally, Zacks Research raised The RMR Group from a “strong sell” rating to a “hold” rating in a research note on Monday, January 19th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, The RMR Group 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 company’s stock in a transaction on Thursday, December 11th. The stock was bought at an average price of $8.65 per share, for a total transaction of $17,436,220.20. Following the transaction, the insider owned 4,577,835 shares of the company’s stock, valued at approximately $39,598,272.75. The trade was a 78.68% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 54.69% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. NewEdge Advisors LLC raised its holdings in The RMR Group by 313.1% in the first quarter. NewEdge Advisors LLC now owns 1,483 shares of the financial services provider’s stock worth $25,000 after purchasing an additional 1,124 shares during the period. New York State Common Retirement Fund grew its holdings in shares of The RMR Group by 538.5% in the 3rd quarter. New York State Common Retirement Fund now owns 1,660 shares of the financial services provider’s stock valued at $26,000 after buying an additional 1,400 shares during the period. PNC Financial Services Group Inc. increased its position in shares of The RMR Group by 1,307.1% in 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 buying an additional 1,647 shares in the last quarter. Quarry LP acquired a new stake in The RMR Group during the 3rd quarter worth $36,000. Finally, State of Alaska Department of Revenue acquired a new stake in The RMR Group during the 4th quarter worth $41,000. Institutional investors and hedge funds own 42.31% of the company’s stock.

The RMR Group Trading Up 7.6%

The company has a quick ratio of 0.25, a current ratio of 0.25 and a debt-to-equity ratio of 0.05. The stock has a market capitalization of $540.53 million, a P/E ratio of 12.22 and a beta of 0.96. The company has a fifty day simple moving average of $15.59 and a two-hundred day simple moving average of $15.82.

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.