Zacks Investment Research upgraded shares of Rent-A-Center (NASDAQ:RCII) from a sell rating to a hold rating in a research note issued to investors on Friday morning.
According to Zacks, “Rent-A-Center's shares have underperformed the industry in the past six months, as investors remain concerned about the company’s waning top and bottom lines. In third-quarter 2017, the company posted a loss of 15 cents a share that missed the Zacks Consensus Estimate and also fell sharply from the year-ago period. Top line also slid year over year and came below the consensus mark, after surpassing the same in the preceding quarter. Comps also declined but improved sequentially. Nevertheless, the company is concentrating on a new labor model, supply chain initiative and productivity enhancements. These endeavors are directed toward improving the performance of Core U.S. segment, optimizing the Acceptance Now business and enhancing distribution channels as well as integrating retail and online offerings. The company is also rationalizing its store base and lowering its debt load. It is exploring strategic and financial alternatives.”
Several other analysts also recently issued reports on the stock. BidaskClub downgraded shares of Rent-A-Center from a hold rating to a sell rating in a research note on Friday, December 15th. Jefferies Group cut their target price on shares of Rent-A-Center from $12.00 to $11.00 and set a hold rating on the stock in a research note on Wednesday, November 1st. Raymond James Financial reissued a market perform rating on shares of Rent-A-Center in a research note on Wednesday, October 25th. Stifel Nicolaus restated a hold rating and set a $10.50 price target on shares of Rent-A-Center in a report on Wednesday, November 1st. Finally, Loop Capital set a $8.00 price target on shares of Rent-A-Center and gave the company a sell rating in a report on Tuesday, October 31st. Two investment analysts have rated the stock with a sell rating, five have issued a hold rating and two have given a buy rating to the company. The stock presently has an average rating of Hold and a consensus target price of $11.21.
Shares of Rent-A-Center (NASDAQ RCII) traded up $0.24 during trading hours on Friday, reaching $11.40. 1,042,323 shares of the company’s stock traded hands, compared to its average volume of 1,415,622. The company has a debt-to-equity ratio of 2.69, a quick ratio of 0.46 and a current ratio of 2.55. Rent-A-Center has a 52 week low of $7.76 and a 52 week high of $13.89. The firm has a market cap of $594.96, a P/E ratio of -3.45 and a beta of 0.69.
Rent-A-Center (NASDAQ:RCII) last announced its earnings results on Monday, October 30th. The company reported ($0.15) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.08) by ($0.07). Rent-A-Center had a negative net margin of 6.35% and a negative return on equity of 0.66%. The firm had revenue of $643.97 million for the quarter, compared to analyst estimates of $649.09 million. During the same period last year, the firm earned $0.11 earnings per share. Rent-A-Center’s revenue for the quarter was down 7.2% compared to the same quarter last year. analysts expect that Rent-A-Center will post -0.2 EPS for the current year.
Several institutional investors have recently bought and sold shares of RCII. Schwab Charles Investment Management Inc. grew its holdings in shares of Rent-A-Center by 3.0% during the 2nd quarter. Schwab Charles Investment Management Inc. now owns 1,551,830 shares of the company’s stock valued at $18,188,000 after acquiring an additional 45,451 shares in the last quarter. BNP Paribas Arbitrage SA grew its holdings in shares of Rent-A-Center by 19.2% during the 2nd quarter. BNP Paribas Arbitrage SA now owns 29,500 shares of the company’s stock valued at $346,000 after acquiring an additional 4,748 shares in the last quarter. Swiss National Bank grew its holdings in shares of Rent-A-Center by 8.7% during the 2nd quarter. Swiss National Bank now owns 91,500 shares of the company’s stock valued at $1,072,000 after acquiring an additional 7,300 shares in the last quarter. JPMorgan Chase & Co. grew its holdings in shares of Rent-A-Center by 1,124.8% during the 2nd quarter. JPMorgan Chase & Co. now owns 1,229,142 shares of the company’s stock valued at $14,405,000 after acquiring an additional 1,128,785 shares in the last quarter. Finally, AXA purchased a new position in shares of Rent-A-Center during the 2nd quarter valued at $335,000.
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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.
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