Zacks Investment Research Lowers Aaron’s Inc. (AAN) to Sell
Aaron’s Inc. (NYSE:AAN) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Wednesday.
According to Zacks, “Aaron’s, Inc. is engaged in the sales and lease ownership and specialty retailing of residential and office furniture, consumer electronics, home appliances and accessories. It is engaged in the lease ownership, lease and retail sale of a variety of products, such as widescreen and LCD televisions, computers, living room and bedroom furniture, and refrigerators The company offers products of various brands, such as JVC, Mitsubishi, Philips, Panasonic, Sony, Dell, Hewlett-Packard, Simmons, Frigidaire, and Sharp. Aaron’s, Inc. is based in Atlanta, Georgia. “
Separately, TheStreet raised Aaron’s from a “hold” rating to a “buy” rating in a report on Thursday, September 1st. One research analyst has rated the stock with a sell rating, two have issued a hold rating, four have given a buy rating and one has given a strong buy rating to the company. The stock has an average rating of “Buy” and a consensus price target of $29.92.
Aaron’s (NYSE:AAN) traded down 0.60% during midday trading on Wednesday, hitting $24.99. The stock had a trading volume of 512,905 shares. The company’s 50 day moving average price is $24.97 and its 200-day moving average price is $24.48. Aaron’s has a 52 week low of $20.24 and a 52 week high of $40.80. The stock has a market capitalization of $1.82 billion, a price-to-earnings ratio of 13.65 and a beta of 0.28.
Aaron’s (NYSE:AAN) last issued its earnings results on Friday, July 29th. The company reported $0.59 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.57 by $0.02. Aaron’s had a return on equity of 11.01% and a net margin of 4.15%. The business earned $789.40 million during the quarter, compared to analysts’ expectations of $809.16 million. During the same quarter in the prior year, the firm earned $0.61 EPS. The business’s revenue for the quarter was up 2.7% compared to the same quarter last year. Equities analysts anticipate that Aaron’s will post $2.26 earnings per share for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Monday, October 3rd. Shareholders of record on Friday, September 2nd will be given a $0.025 dividend. The ex-dividend date of this dividend is Wednesday, August 31st. This represents a $0.10 dividend on an annualized basis and a dividend yield of 0.40%. Aaron’s’s dividend payout ratio (DPR) is presently 5.43%.
In related news, Director Robert H. Yanker purchased 40,000 shares of Aaron’s stock in a transaction on Friday, August 19th. The shares were purchased at an average price of $25.29 per share, for a total transaction of $1,011,600.00. The purchase was disclosed in a legal filing with the SEC, which is available at this hyperlink. 1.12% of the stock is owned by company insiders.
Several large investors have recently added to or reduced their stakes in the stock. Teacher Retirement System of Texas raised its stake in Aaron’s by 13.8% in the second quarter. Teacher Retirement System of Texas now owns 9,128 shares of the company’s stock worth $200,000 after buying an additional 1,108 shares during the period. Amalgamated Bank acquired a new stake in shares of Aaron’s during the second quarter valued at approximately $203,000. Suntrust Banks Inc. raised its stake in shares of Aaron’s by 4.2% in the second quarter. Suntrust Banks Inc. now owns 10,675 shares of the company’s stock valued at $233,000 after buying an additional 433 shares during the last quarter. Northwestern Mutual Investment Management Company LLC raised its stake in shares of Aaron’s by 0.3% in the second quarter. Northwestern Mutual Investment Management Company LLC now owns 11,178 shares of the company’s stock valued at $245,000 after buying an additional 29 shares during the last quarter. Finally, Miles Capital Inc. acquired a new stake in shares of Aaron’s during the second quarter valued at approximately $249,000. Hedge funds and other institutional investors own 91.99% of the company’s stock.
Aaron’s, Inc is a specialty retailer of furniture, consumer electronics, computers, appliances and household accessories. The Company’s operating segments include Sales and Lease Ownership, Progressive, HomeSmart, DAMI, Franchise, Manufacturing and Others. The Company’s store-based operations engage in the lease ownership and retail sale of a range of products, such televisions, computers, tablets, mobile phones, living room, dining room and bedroom furniture, mattresses, washers, dryers and refrigerators.
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