Zacks Investment Research upgraded shares of Rent-A-Center (NASDAQ:RCII) from a sell rating to a hold rating in a research report sent to investors on Friday.
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.”
A number of other equities research analysts also recently weighed in on the company. BidaskClub downgraded Rent-A-Center from a hold rating to a sell rating in a research report on Friday, December 15th. Jefferies Group cut their target price on Rent-A-Center from $12.00 to $11.00 and set a hold rating for the company in a research report on Wednesday, November 1st. Raymond James Financial restated a market perform rating on shares of Rent-A-Center in a research report on Wednesday, October 25th. Stifel Nicolaus reaffirmed a hold rating and issued 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 Rent-A-Center and gave the company a sell rating in a report on Tuesday, October 31st. Two analysts have rated the stock with a sell rating, five have issued a hold rating and two have given a buy rating to the stock. Rent-A-Center currently has a consensus rating of Hold and a consensus target price of $11.21.
Rent-A-Center (RCII) traded up $0.24 on Friday, reaching $11.40. The company’s stock had a trading volume of 1,042,323 shares, compared to its average volume of 1,415,622. The firm has a market capitalization of $594.96, a P/E ratio of -3.45 and a beta of 0.69. The company has a debt-to-equity ratio of 2.69, a current ratio of 2.55 and a quick ratio of 0.46. Rent-A-Center has a 12-month low of $7.76 and a 12-month high of $13.89.
Rent-A-Center (NASDAQ:RCII) last released its earnings results on Monday, October 30th. The company reported ($0.15) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.08) by ($0.07). The firm had revenue of $643.97 million during the quarter, compared to analyst estimates of $649.09 million. Rent-A-Center had a negative return on equity of 0.66% and a negative net margin of 6.35%. The business’s revenue for the quarter was down 7.2% on a year-over-year basis. During the same quarter last year, the company earned $0.11 earnings per share. research analysts predict that Rent-A-Center will post -0.2 earnings per share for the current fiscal year.
Several hedge funds and other institutional investors have recently bought and sold shares of RCII. Schwab Charles Investment Management Inc. increased its holdings in shares of Rent-A-Center by 3.0% in the second quarter. Schwab Charles Investment Management Inc. now owns 1,551,830 shares of the company’s stock valued at $18,188,000 after buying an additional 45,451 shares in the last quarter. BNP Paribas Arbitrage SA increased its holdings in shares of Rent-A-Center by 19.2% in the second quarter. BNP Paribas Arbitrage SA now owns 29,500 shares of the company’s stock valued at $346,000 after buying an additional 4,748 shares in the last quarter. Swiss National Bank increased its holdings in shares of Rent-A-Center by 8.7% in the second quarter. Swiss National Bank now owns 91,500 shares of the company’s stock valued at $1,072,000 after buying an additional 7,300 shares in the last quarter. JPMorgan Chase & Co. increased its holdings in shares of Rent-A-Center by 1,124.8% in the second quarter. JPMorgan Chase & Co. now owns 1,229,142 shares of the company’s stock valued at $14,405,000 after buying an additional 1,128,785 shares in the last quarter. Finally, AXA bought a new position in shares of Rent-A-Center in the second 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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