Rent-A-Center Inc. (RCII) Bonds Trading 10.6% Lower
An issue of Rent-A-Center Inc. (NASDAQ:RCII) debt fell 10.6% against its face value during trading on Tuesday. The high-yield debt issue has a 6.625% coupon and is set to mature on November 15, 2020. The debt is now trading at $86.38 and was trading at $96.94 one week ago. Price changes in a company’s debt in credit markets sometimes anticipate parallel changes in its stock price.
Separately, Zacks Investment Research raised shares of Rent-A-Center from a “sell” rating to a “hold” rating in a report on Monday, October 3rd. Two analysts have rated the stock with a hold rating, three have assigned a buy rating and one has issued a strong buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and an average price target of $22.72.
Rent-A-Center Inc. (NASDAQ:RCII) opened at 9.18 on Wednesday. The firm’s 50 day moving average is $12.49 and its 200 day moving average is $13.02. Rent-A-Center Inc. has a 12-month low of $8.00 and a 12-month high of $26.26. The company’s market cap is $487.60 million.
Rent-A-Center (NASDAQ:RCII) last posted its earnings results on Wednesday, July 27th. The company reported $0.41 earnings per share for the quarter, missing the consensus estimate of $0.49 by $0.08. The firm earned $749.60 million during the quarter, compared to analyst estimates of $782.12 million. Rent-A-Center had a negative net margin of 27.93% and a positive return on equity of 14.03%. The business’s revenue for the quarter was down 8.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.50 earnings per share. Equities research analysts anticipate that Rent-A-Center Inc. will post $1.73 EPS for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Thursday, October 20th. Stockholders of record on Monday, October 3rd will be paid a $0.08 dividend. This represents a $0.32 dividend on an annualized basis and a dividend yield of 3.49%. The ex-dividend date of this dividend is Thursday, September 29th. Rent-A-Center’s dividend payout ratio (DPR) is -1.93%.
In related news, CEO Robert Dale Davis purchased 10,000 shares of Rent-A-Center stock in a transaction dated Monday, August 1st. The shares were acquired at an average cost of $10.87 per share, with a total value of $108,700.00. Following the purchase, the chief executive officer now owns 131,850 shares of the company’s stock, valued at $1,433,209.50. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. 3.40% of the stock is currently owned by insiders.
Large investors have recently added to or reduced their stakes in the stock. A.R.T. Advisors LLC increased its stake in Rent-A-Center by 519.9% in the first quarter. A.R.T. Advisors LLC now owns 286,762 shares of the company’s stock worth $4,545,000 after buying an additional 240,500 shares during the period. Envestnet Asset Management Inc. increased its stake in Rent-A-Center by 18.2% in the first quarter. Envestnet Asset Management Inc. now owns 246,098 shares of the company’s stock worth $3,901,000 after buying an additional 37,940 shares during the period. Pinnacle Holdings LLC increased its stake in Rent-A-Center by 4.4% in the first quarter. Pinnacle Holdings LLC now owns 36,845 shares of the company’s stock worth $584,000 after buying an additional 1,550 shares during the period. Renaissance Technologies LLC increased its stake in Rent-A-Center by 87.5% in the first quarter. Renaissance Technologies LLC now owns 808,210 shares of the company’s stock worth $12,810,000 after buying an additional 377,200 shares during the period. Finally, Hancock Holding Co. bought a new stake in Rent-A-Center during the first quarter worth about $761,000. 9.58% of the stock is currently owned by institutional investors and hedge funds.
Rent-A-Center Company Profile
Rent-A-Center, Inc is a rent-to-own operator in North America. The Company provides an opportunity to obtain ownership of products, such as consumer electronics, appliances, computers (including tablets), smartphones and furniture (including accessories), under rental purchase agreements. The Company operates in four segments: Core U.S., Acceptance Now, Mexico and Franchising.
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