The Rent-A-Center Inc. (RCII) Bonds Trading 10.6% Lower

The 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 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 one week ago. Price changes in a company’s debt in credit markets sometimes predict parallel changes in its share price.

Separately, Zacks Investment Research raised shares of Rent-A-Center from a “sell” rating to a “hold” rating in a research note on Monday, October 3rd. Two research analysts have rated the stock with a hold rating, three have issued a buy rating and one has issued a strong buy rating to the company. Rent-A-Center has an average rating of “Buy” and a consensus target price of $22.72.

Shares of Rent-A-Center Inc. (NASDAQ:RCII) opened at 9.18 on Wednesday. The stock’s market capitalization is $487.60 million. The company’s 50-day moving average is $12.49 and its 200 day moving average is $13.02. Rent-A-Center Inc. has a 52 week low of $8.00 and a 52 week high of $26.26.

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 Thomson Reuters’ consensus estimate of $0.49 by $0.08. Rent-A-Center had a negative net margin of 27.93% and a positive return on equity of 14.03%. The business had revenue of $749.60 million for the quarter, compared to analysts’ expectations of $782.12 million. During the same quarter last year, the business posted $0.50 earnings per share. The business’s revenue was down 8.1% compared to the same quarter last year. On average, equities analysts forecast that Rent-A-Center Inc. will post $1.73 EPS for the current fiscal year.

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 20th. Shareholders of record on Monday, October 3rd will be issued 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 yield of 3.49%. Rent-A-Center’s dividend payout ratio (DPR) is currently -1.93%.

In other Rent-A-Center news, CEO Robert Dale Davis bought 10,000 shares of the company’s stock in a transaction on Monday, August 1st. The stock was purchased at an average cost of $10.87 per share, for a total transaction of $108,700.00. Following the acquisition, the chief executive officer now owns 131,850 shares of the company’s stock, valued at approximately $1,433,209.50. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 3.40% of the company’s stock.

Several large investors have recently added to or reduced their stakes in RCII. A.R.T. Advisors LLC boosted 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 valued at $4,545,000 after buying an additional 240,500 shares in the last quarter. Envestnet Asset Management Inc. boosted 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 valued at $3,901,000 after buying an additional 37,940 shares in the last quarter. Pinnacle Holdings LLC boosted 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 valued at $584,000 after buying an additional 1,550 shares in the last quarter. Renaissance Technologies LLC boosted 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 valued at $12,810,000 after buying an additional 377,200 shares in the last quarter. Finally, Hancock Holding Co. purchased a new stake in Rent-A-Center during the first quarter valued at about $761,000. 9.58% of the stock is currently owned by institutional investors.

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