Rent-A-Center (NASDAQ:RCII) trades up 16.1% after earnings beat expectations

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Rent-A-Center, Inc. (NASDAQ:RCIIGet a rating) The stock price rose 16.1% by midday on Thursday after a stronger-than-expected earnings report. The stock traded as high as $29.52 and last traded at $29.52. 6,891 shares were traded at midday, down 99% from the average session volume of 658,259 shares. The stock previously closed at $25.43.

The company reported earnings per share (EPS) of $1.15 for the quarter, beating the consensus estimate of $1.02 by $0.13. Rent-A-Center achieved a net margin of 1.87% and a return on equity of 48.47%. In the same period a year earlier, the company posted earnings per share of $1.63.

Rent-A-Center Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, July 12. Shareholders of record on Tuesday, June 21 received a dividend of $0.34. The ex-dividend date was Friday, June 17. This represents an annualized dividend of $1.36 and a dividend yield of 4.72%. Rent-A-Center’s payout ratio is currently 106.25%.

A Wall Street analyst gives his opinion

RCII has been the subject of several research reports. Stephens cut Rent-A-Center shares from an “overweight” rating to an “equal weight” rating and set a price target of $42.00 for the company. in a Wednesday, June 29 research report. StockNews.com cut shares of Rent-A-Center from a “buy” rating to a “hold” rating in a research report on Tuesday. Two investment analysts gave the stock a hold rating and four gave the company a buy rating. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $52.75.

Insider buying and selling

In other news, Director Jeffrey J. Brown acquired 1,223 Rent-A-Center shares in a transaction that took place on Tuesday, July 12. The shares were purchased at an average price of $20.69 per share, for a total transaction of $25,303.87. Following the purchase, the administrator now directly owns 75,669 shares of the company, valued at approximately $1,565,591.61. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, accessible via the SEC website. 1.50% of the shares are currently held by insiders of the company.

Institutional entries and exits

Several large investors have recently changed their stake in the company. State Street Corp increased its stake in Rent-A-Center by 8.8% in the first quarter. State Street Corp now owns 2,333,336 shares of the company valued at $58,777,000 after purchasing an additional 189,510 shares last quarter. Ieq Capital LLC increased its stake in Rent-A-Center by 1.9% during the 2nd quarter. Ieq Capital LLC now owns 2,056,333 shares of the company valued at $39,995,000 after purchasing an additional 39,330 shares last quarter. Fuller & Thaler Asset Management Inc. increased its stake in Rent-A-Center by 3.1% during the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 1,976,736 shares of the company valued at $94,962,000 after purchasing an additional 59,905 shares last quarter. Dimensional Fund Advisors LP increased its stake in Rent-A-Center by 0.9% during the 4th quarter. Dimensional Fund Advisors LP now owns 1,216,493 shares of the company valued at $58,443,000 after purchasing an additional 11,141 shares in the last quarter. Finally, Bank of New York Mellon Corp increased its stake in Rent-A-Center by 1.6% in the 1st quarter. Bank of New York Mellon Corp now owns 898,624 shares of the company valued at $22,637,000 after buying an additional 14,110 shares last quarter. Institutional investors hold 81.66% of the company’s shares.

Rent-A-Center Price Performance

The company has a debt ratio of 2.68, a quick ratio of 0.73 and a current ratio of 3.25. The company has a market capitalization of $1.70 billion, a price-earnings ratio of 22.52 and a beta of 1.67. The stock’s 50-day simple moving average is $22.95 and its 200-day simple moving average is $27.86.

Rent-A-Center Company Profile

(Get a rating)

Rent-A-Center, Inc., together with its subsidiaries, rents household durable goods to customers on a lease-purchase basis. The Company operates in four segments: Rent-A-Center Business, Acima, Mexico and Franchising. It offers furniture and accessories, household appliances, consumer electronics, computers, tablets and smartphones, tools, tires, handbags and other accessories under lease- purchase.

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