Rent-A-Center (RCII) Lifted to “Hold” at Zacks Investment Research
Zacks Investment Research upgraded shares of Rent-A-Center (NASDAQ:RCII) from a sell rating to a hold rating in a research note released on Wednesday morning.
According to Zacks, “Rent-A-Center has underperformed the industry in the past six months, as investors remain concerned about the company’s waning top and bottom lines. In fourth-quarter 2017, the company posted a loss of 41 cents a share wider than the Zacks Consensus Estimate and the year-ago quarterly figure. Top line also slid year over year and came below the consensus mark for the second straight quarter. Comps also declined but improved sequentially. The company has been witnessing dismal comps in the Core U.S. and Mexico segments for quite some time now. Nevertheless, management intends to focus more on cost containment, improving traffic trends, refranchising program and augmenting cash flow. The company in collaboration with AlixPartners has identified cost savings opportunities. The company is also rationalizing its store base and lowering its debt load. It is exploring strategic and financial alternatives.”
Several other equities research analysts have also commented on the stock. BidaskClub lowered shares of Rent-A-Center from a hold rating to a sell rating in a research report on Friday, December 15th. ValuEngine lowered shares of Rent-A-Center from a hold rating to a sell rating in a research report on Wednesday, January 24th. Loop Capital set a $8.00 target price on shares of Rent-A-Center and gave the stock a sell rating in a report on Wednesday, January 17th. Stephens reissued an equal weight rating and issued a $5.00 target price (down from $8.00) on shares of Rent-A-Center in a report on Thursday, February 22nd. Finally, Stifel Nicolaus reduced their target price on shares of Rent-A-Center from $10.50 to $9.00 and set a hold rating for the company in a report on Tuesday, February 27th. Four analysts have rated the stock with a sell rating, four have issued a hold rating and two have assigned a buy rating to the company. Rent-A-Center has an average rating of Hold and an average price target of $9.86.
Rent-A-Center (NASDAQ:RCII) last released its quarterly earnings results on Tuesday, February 20th. The company reported ($0.41) EPS for the quarter, missing the Thomson Reuters’ consensus estimate of ($0.07) by ($0.34). Rent-A-Center had a net margin of 0.25% and a negative return on equity of 11.30%. The business had revenue of $638.95 million for the quarter, compared to analysts’ expectations of $654.55 million. During the same period in the previous year, the company earned ($0.23) EPS. Rent-A-Center’s revenue for the quarter was down 6.6% compared to the same quarter last year. sell-side analysts expect that Rent-A-Center will post 0.24 earnings per share for the current fiscal year.
A number of institutional investors have recently added to or reduced their stakes in the stock. Public Employees Retirement System of Ohio increased its holdings in Rent-A-Center by 1.1% in the 2nd quarter. Public Employees Retirement System of Ohio now owns 24,038 shares of the company’s stock worth $282,000 after acquiring an additional 263 shares in the last quarter. Lenox Wealth Management Inc. increased its holdings in Rent-A-Center by 8.7% in the 4th quarter. Lenox Wealth Management Inc. now owns 61,032 shares of the company’s stock worth $677,000 after acquiring an additional 4,869 shares in the last quarter. Strs Ohio increased its holdings in Rent-A-Center by 9.2% in the 4th quarter. Strs Ohio now owns 65,100 shares of the company’s stock worth $722,000 after acquiring an additional 5,500 shares in the last quarter. Municipal Employees Retirement System of Michigan increased its holdings in Rent-A-Center by 59.0% in the 3rd quarter. Municipal Employees Retirement System of Michigan now owns 19,960 shares of the company’s stock worth $229,000 after acquiring an additional 7,410 shares in the last quarter. Finally, Hollencrest Capital Management increased its holdings in Rent-A-Center by 13.1% in the 4th quarter. Hollencrest Capital Management now owns 77,800 shares of the company’s stock worth $864,000 after acquiring an additional 9,000 shares in the last quarter.
COPYRIGHT VIOLATION NOTICE: This article was first posted by The Cerbat Gem and is the sole property of of The Cerbat Gem. If you are viewing this article on another publication, it was stolen and reposted in violation of US and international copyright law. The original version of this article can be viewed at https://www.thecerbatgem.com/2018/03/11/rent-a-center-rcii-lifted-to-hold-at-zacks-investment-research.html.
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.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Rent-A-Center Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Rent-A-Center and related companies with MarketBeat.com's FREE daily email newsletter.