Zacks Investment Research downgraded shares of Rent-A-Center Inc. (NASDAQ:RCII) from a hold rating to a strong sell rating in a research report report published on Thursday morning.
According to Zacks, “Rent-A-Center disappointed investors with its bleak preliminary guidance for third-quarter 2016. The company now expects Core U.S. same store sales to be down nearly 12% in the quarter while Acceptance Now same store sales is estimated to be flat. Core U.S. gross profit is likely to be flat year over year. The company anticipates earnings per share both on the GAAP and non-GAAP basis to be in the range of $0.05 to $0.15 per share. The technical snags and outages after the execution of new point-of-sale system negatively impacted Core sales and compelled management to hold a conservative view. Moreover, Rent-A-Center has been disappointing investors with its top-line performance for the past four consecutive quarters. Accelerated point of sale system rollout, persistent sluggishness across the computers and tablets categories, headwinds across the oil-impacted markets and continued smartphones recast impacted the results.”
Separately, Jefferies Group started coverage on Rent-A-Center in a research report on Thursday. They set a hold rating and a $10.00 target price for the company. One research analyst has rated the stock with a sell rating, two have issued a hold rating, three have assigned a buy rating and one has assigned a strong buy rating to the company. The stock has an average rating of Buy and an average price target of $20.90.
Rent-A-Center (NASDAQ:RCII) traded down 1.7868% during trading on Thursday, hitting $8.7999. The stock had a trading volume of 813,269 shares. Rent-A-Center has a 12 month low of $8.00 and a 12 month high of $26.26. The stock has a 50 day moving average price of $12.27 and a 200-day moving average price of $12.97. The stock’s market cap is $467.42 million.
Rent-A-Center (NASDAQ:RCII) last released its earnings results on Wednesday, July 27th. The company reported $0.41 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.49 by $0.08. Rent-A-Center had a positive return on equity of 14.03% and a negative net margin of 27.93%. The business had revenue of $749.60 million for the quarter, compared to analysts’ expectations of $782.12 million. During the same quarter in the prior year, the business posted $0.50 EPS. The business’s revenue for the quarter was down 8.1% compared to the same quarter last year. On average, equities analysts predict that Rent-A-Center will post $1.73 EPS for the current year.
The business also recently disclosed 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 annualized dividend and a dividend yield of 3.57%. The ex-dividend date is Thursday, September 29th. Rent-A-Center’s payout ratio is -1.93%.
In related news, CEO Robert Dale Davis acquired 10,000 shares of the stock in a transaction dated Monday, August 1st. The stock was 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 directly owns 131,850 shares of the company’s stock, valued at $1,433,209.50. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 3.40% of the stock is owned by insiders.
Several large investors have recently bought and sold shares of the stock. ClariVest Asset Management LLC bought a new stake in Rent-A-Center during the second quarter valued at about $105,000. KCG Holdings Inc. bought a new stake in Rent-A-Center during the second quarter valued at about $125,000. Mason Street Advisors LLC bought a new stake in Rent-A-Center during the second quarter valued at about $127,000. Mackenzie Financial Corp bought a new stake in Rent-A-Center during the second quarter valued at about $132,000. Finally, Panagora Asset Management Inc. bought a new stake in Rent-A-Center during the second quarter valued at about $150,000. 9.58% of the stock is owned by institutional investors and hedge funds.
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.