Rent-A-Center, Inc. (NASDAQ:RCII) Announces Quarterly Dividend of $0.34
Rent-A-Center, Inc. (NASDAQ:RCII – Get Rating) announced a quarterly dividend on Thursday, March 24, reports RTT News. Investors of record on Tuesday April 5 will receive a dividend of 0.34 per share on Friday April 22. This represents an annualized dividend of $1.36 and a yield of 5.31%.
Rent-A-Center has a payout ratio of 22.9%, which means that its dividend is sufficiently covered by earnings. Equity research analysts expect Rent-A-Center to earn $5.92 per share next year, meaning the company should continue to be able to cover its annual dividend of 1. $36 with an expected future payout ratio of 23.0%.
RCII traded down $0.39 in midday trading on Thursday, hitting $25.62. 2,004 shares were traded, against an average volume of 980,961. The company has a leverage ratio of 3.06, a quick ratio of 0.74 and a current ratio of 3.36. The stock has a market capitalization of $1.51 billion, a PE ratio of 13.01 and a beta of 1.66. The company has a 50-day moving average price of $35.50 and a two-hundred-day moving average price of $46.16. Rent-A-Center has a 1-year minimum of $22.70 and a 1-year maximum of $67.76.
Rent-A-Center (NASDAQ:RCII – Get Rating) last released its quarterly results on Wednesday, February 23. The company reported earnings per share of $1.08 for the quarter, missing the Zacks consensus estimate of $1.58 per ($0.50). The company posted revenue of $1.17 billion in the quarter, versus $1.20 billion expected by analysts. Rent-A-Center had a return on equity of 50.75% and a net margin of 2.94%. Rent-A-Center’s quarterly revenue increased 63.5% over the same quarter last year. During the same period last year, the company posted earnings per share of $1.03. Sell-side analysts expect Rent-A-Center to post EPS of 4.71 for the current fiscal year.
In other Rent-A-Center news, CEO Mitchell E. Fadel acquired 40,000 shares of the company in a transaction dated Tuesday, March 1. The stock was purchased at an average price of $27.08 per share, with a total value of $1,083,200.00. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Company insiders own 1.50% of the company’s shares.
Several hedge funds and other institutional investors have recently changed their RCII holdings. Millennium Management LLC increased its holdings of Rent-A-Center stock by 80.4% during the fourth quarter. Millennium Management LLC now owns 388,933 shares of the company worth $18,684,000 after purchasing an additional 173,391 shares in the last quarter. Morgan Stanley increased its stake in Rent-A-Center by 22.3% in the second quarter. Morgan Stanley now owns 436,602 shares of the company worth $23,170,000 after buying an additional 79,661 shares last quarter. Marshall Wace LLP increased its stake in shares of Rent-A-Center by 463.1% during the fourth quarter. Marshall Wace LLP now owns 77,702 shares of the company valued at $3,731,000 after purchasing an additional 63,904 shares during the period. Advisors Asset Management Inc. increased its stake in shares of Rent-A-Center by 43.0% during the fourth quarter. Advisors Asset Management Inc. now owns 41,120 shares of the company valued at $1,975,000 after purchasing an additional 12,366 shares during the period. Finally, LPL Financial LLC increased its equity stake in Rent-A-Center by 55.4% during the fourth quarter. LPL Financial LLC now owns 15,307 shares of the company valued at $735,000 after acquiring an additional 5,460 shares in the last quarter. 76.20% of the shares are held by institutional investors.
A number of equity analysts have recently weighed in on RCII shares. KeyCorp cut its price target on Rent-A-Center stock from $68.00 to $44.00 and set an “overweight” rating on the stock in a Friday, Feb. 25 report. Raymond James upgraded Rent-A-Center from a “strong buy” rating to an “outperform” rating and lowered its price target for the company from $65.00 to $40.00 in a research note Friday, February 25. Finally, Zacks Investment Research upgraded Rent-A-Center from a “hold” rating to a “strong sell” rating and set a price target of $24.00 on the stock. in a Monday, March 7 research note. One equity research analyst gave the stock a sell rating and five gave the stock a buy rating. According to data from MarketBeat, the stock has an average rating of “Buy” and a consensus target price of $53.00.
About Rent-A-Center (Get an evaluation)
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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