Rent-A-Center Inc. (RCII) Bonds Trading 10.6% Lower
An issue of Rent-A-Center Inc. (NASDAQ:RCII) debt fell 10.6% as a percentage of its face value during trading on Wednesday. The debt issue has a 6.625% coupon and is set to mature on November 15, 2020. The bonds in the issue are now trading at $86.38 and were trading at $96.94 last week. Price moves in a company’s debt in credit markets often predict parallel moves in its stock price.
Separately, Zacks Investment Research downgraded shares of Rent-A-Center from a “buy” rating to a “hold” rating in a research report on Wednesday, June 29th. Two analysts have rated the stock with a hold rating, three have assigned a buy rating and one has given a strong buy rating to the company. Rent-A-Center has a consensus rating of “Buy” and a consensus target price of $22.72.
Shares of Rent-A-Center Inc. (NASDAQ:RCII) opened at 9.55 on Thursday. The stock’s 50 day moving average is $12.38 and its 200-day moving average is $13.00. The company’s market cap is $507.26 million. Rent-A-Center Inc. has a one year low of $8.00 and a one year high of $26.26.
Rent-A-Center (NASDAQ:RCII) last announced its quarterly earnings results on Wednesday, July 27th. The company reported $0.41 EPS for the quarter, missing the consensus estimate of $0.49 by $0.08. The firm had revenue of $749.60 million for the quarter, compared to analysts’ expectations 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 quarterly revenue was down 8.1% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.50 EPS. Equities research analysts expect that Rent-A-Center Inc. will post $1.73 earnings per share for the current year.
The company 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 dividend of $0.08 per share. The ex-dividend date of this dividend is Thursday, September 29th. This represents a $0.32 annualized dividend and a dividend yield of 3.35%. Rent-A-Center’s dividend payout ratio is currently -1.93%.
In other news, CEO Robert Dale Davis purchased 10,000 shares of the business’s stock in a transaction dated Monday, August 1st. The shares were purchased at an average price of $10.87 per share, for a total transaction of $108,700.00. Following the completion of the purchase, the chief executive officer now owns 131,850 shares in the company, valued at approximately $1,433,209.50. The purchase was disclosed in a document filed with the SEC, which is available at this link. Insiders own 3.40% of the company’s stock.
Institutional investors have recently made changes to their positions in the stock. ClariVest Asset Management LLC purchased a new position in shares of Rent-A-Center during the second quarter valued at approximately $105,000. KCG Holdings Inc. purchased a new position in shares of Rent-A-Center during the second quarter valued at approximately $125,000. Mason Street Advisors LLC purchased a new position in shares of Rent-A-Center during the second quarter valued at approximately $127,000. Mackenzie Financial Corp purchased a new position in shares of Rent-A-Center during the second quarter valued at approximately $132,000. Finally, Panagora Asset Management Inc. purchased a new position in shares of Rent-A-Center during the second quarter valued at approximately $150,000. Hedge funds and other institutional investors own 9.58% of the company’s stock.
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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