Rent-A-Center (NASDAQ:RCII – Get a rating) released an update to its earnings guidance for the fourth quarter of 2022 on Wednesday morning. The company provided EPS guidance of $0.65 to $0.85 for the period, versus the consensus estimate for EPS of $0.96. The company released a revenue forecast of $975.00 million to $1.02 billion, compared to the consensus revenue estimate of $1.04 billion.
Rent-A-Center stock up 0.4%
Stock Rent-A-Center opened at $21.30 on Wednesday. The company has a market capitalization of $1.19 billion, a P/E ratio of 71.00 and a beta of 1.78. Rent-A-Center has a 1-year minimum of $16.82 and a 1-year maximum of $51.98. The company has a fifty-day simple moving average of $21.79 and a 200-day simple moving average of $23.84. The company has a current ratio of 3.33, a quick ratio of 0.93 and a debt ratio of 2.50.
Rent-A-Center (NASDAQ:RCII – Get a rating) last reported quarterly earnings data on Thursday, Nov. 3. The company reported EPS of $0.94 for the quarter, beating consensus analyst estimates of $0.89 by $0.05. Rent-A-Center had a net margin of 0.44% and a return on equity of 44.72%. The company had revenue of $1,000.00 million in the quarter, versus consensus estimate of $1.01 billion. During the same quarter last year, the company posted EPS of $1.52. The company’s quarterly revenue was down 15.3% year over year. Research analysts expect Rent-A-Center to post earnings per share of 3.65 for the current fiscal year.
Rent-A-Center Dividend Announcement
The company also recently disclosed a quarterly dividend, which was paid on Tuesday, October 25. Shareholders of record on Tuesday, October 4 received a dividend of $0.34. This represents a dividend of $1.36 on an annualized basis and a dividend yield of 6.38%. The ex-dividend date was Monday, October 3. Rent-A-Center’s dividend payout ratio (DPR) is currently 453.33%.
Changes to analyst ratings
Several brokerages have recently commented on RCII. Bank of America cut its target price on Rent-A-Center shares from $37.00 to $30.00 and set a buy rating for the company in a Friday, Sept. 30 report. Raymond James cut his price target on Rent-A-Center shares from $35.00 to $28.00 and set an outperform rating for the company in a Monday, Oct. 3 report. StockNews.com upgraded Rent-A-Center shares from a hold rating to a buy rating in a research note on Tuesday. Finally, KeyCorp lowered its price target on Rent-A-Center shares from $37.00 to $34.00 and set an overweight rating for the company in a Friday, Nov. 4 research note. One research analyst rated the stock with a hold rating and four rated the stock with a buy rating. Based on data from MarketBeat, the company currently has a Moderate Buy average rating and an average price target of $33.50.
In other news, Director Jeffrey J. Brown purchased 1,475 shares of the company in a trade dated Tuesday, October 25. The stock was purchased at an average price of $17.45 per share, for a total transaction of $25,738.75. Following the transaction, the administrator now owns 77,144 shares of the company, valued at $1,346,162.80. The purchase was disclosed in a document filed with the SEC, accessible via this hyperlink. Company insiders own 11.00% of the company’s shares.
Hedge funds weigh on Rent-A-Center
Several hedge funds and other institutional investors have recently changed their positions in RCII. State Street Corp increased its position in Rent-A-Center by 8.8% in the 1st quarter. State Street Corp now owns 2,333,336 shares of the company worth $58,777,000 after purchasing an additional 189,510 shares in the last quarter. Cubist Systematic Strategies LLC increased its position in Rent-A-Center by 155.3% during the 2nd quarter. Cubist Systematic Strategies LLC now owns 207,483 shares of the company worth $4,036,000 after purchasing an additional 126,227 shares in the last quarter. Invesco Ltd. increased its stake in Rent-A-Center by 26.8% during the 1st quarter. Invesco Ltd. now owns 423,690 shares of the company worth $10,672,000 after acquiring an additional 89,474 shares in the last quarter. Advisors Asset Management Inc. increased its stake in Rent-A-Center by 176.4% during the 1st quarter. Advisors Asset Management Inc. now owns 113,648 shares of the company worth $2,863,000 after acquiring an additional 72,528 shares in the last quarter. Finally, Engineers Gate Manager LP acquired a new stake in Rent-A-Center during Q1 for a value of approximately $1,740,000. 83.45% of the shares are currently held by institutional investors and hedge funds.
Rent-A-Center Company Profile
Rent-A-Center, Inc., together with its subsidiaries, rents household durable goods to customers on a lease-to-own 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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