Zacks Investment Research downgrades Rent-A-Center (NASDAQ: RCII) to keep
Rent-A-Center (NASDAQ: RCII) was downgraded by Zacks Investment Research from a âstrong buyâ rating to a âconservationâ rating in a research report released Tuesday to clients and investors, Zacks.com reports. They currently have a target price of $ 60.00 on the stock. Zacks Investment Research’s price target suggests a potential rise of 7.55% from the company’s current price.
According to Zacks, âRent-A-Center shares have outperformed the industry for the past three months. The continued expansion of technology with the strength of its resilient operating model contributed to performance. The company had a strong performance in the second quarter of 2021, with the best and the bottom line exceeds the consensus estimate of Zacks and improves year over year. Management is quite impressed with the quarterly performance, with higher same-store sales and strong rental performance in the company’s Rent-A-Center Business segment. the acquisition of Acima also led to this increase. Supported by strong second quarter results, Rent-A-Center raised its guidance for 2021. The company is on track to integrate Acima’s capabilities to create a leading fintech platform. It expects to realize potential synergies of nearly $ 25 million in 2021.
The RCII has been the subject of several other reports. Janney Montgomery Scott downgraded Rent-A-Center from a “neutral” rating to a “buy” rating in a report released Thursday, August 12. Bank of America began covering Rent-A-Center in a report on Wednesday, August 25. They set a “buy” rating and a target price of $ 85 for the stock. One equity research analyst rated the stock with a conservation rating, six gave the company a buy rating, and one gave the company a high buy rating. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Buy” and a consensus price target of $ 69.00.
NASDAQ: RCII shares traded down $ 0.95 during the midday session Tuesday, reaching $ 55.79. The company had a trade volume of 4,502 shares, compared to its average volume of 607,237. Rent-A-Center has a 12-month low of $ 29.95 and a 12-month high of $ 67.76. . The company has a current ratio of 2.95, a quick ratio of 0.66, and a debt ratio of 1.55. The stock has a market cap of $ 3.71 billion, a price-to-earnings ratio of 15.12 and a beta of 1.57. The company has a fifty-day simple moving average of $ 60.83 and a 200-day simple moving average of $ 58.44.
Rent-A-Center (NASDAQ: RCII) last released its quarterly results on Wednesday, August 4. The company reported earnings per share (EPS) of $ 1.63 for the quarter, beating Thomson Reuters consensus estimate of $ 1.36 by $ 0.27. The company posted revenue of $ 1.16 billion for the quarter, compared to analysts’ estimates of $ 1.13 billion. Rent-A-Center recorded a return on equity of 46.39% and a net margin of 6.13%. The company’s revenue grew 69.1% year-over-year. During the same period last year, the company earned $ 0.80 per share. Stock analysts predict Rent-A-Center will post 6.23 EPS for the current fiscal year.
A number of hedge funds and other institutional investors have recently changed their positions in the company. Thrivent Financial for Lutherans increased its position in Rent-A-Center by 21.3% in the second quarter. Thrivent Financial for Lutherans now owns 48,787 shares of the company valued at $ 2,589,000 after purchasing an additional 8,558 shares in the last quarter. Comerica Bank increased its position in Rent-A-Center by 13.3% in the second quarter. Comerica Bank now owns 55,982 shares of the company valued at $ 3,429,000 after purchasing an additional 6,573 shares in the last quarter. Morgan Stanley increased its position in Rent-A-Center by 22.3% in the second quarter. Morgan Stanley now owns 436,602 shares of the company valued at $ 23,170,000 after purchasing an additional 79,661 shares in the last quarter. Wells Fargo & Company MN increased its position in Rent-A-Center by 37.6% during the second quarter. Wells Fargo & Company MN now owns 158,312 shares of the company valued at $ 8,401,000 after purchasing an additional 43,241 shares in the last quarter. Finally, Walleye Capital LLC acquired a new position in Rent-A-Center during the second quarter valued at approximately $ 420,000. 77.73% of the shares are currently held by hedge funds and other institutional investors.
Rent-A-Center Company Profile
Rent-A-Center, Inc engages in providing furniture, electronics, appliances, computers and smartphones through flexible rental purchase agreements. It operates through the following segments: Rent-A-Center Business, Preferred Lease, Mexico and Franchise. The Rent-A-Center Business segment consists of company-owned, option-to-buy rental stores in the United States and Puerto Rico.
Recommended Story: Understanding the Relative Strength Index
Get a Free Copy of Zacks’ Rent-A-Center (RCII) Research Report
For more information on Zacks Investment Research’s research offerings, visit Zacks.com
This instant news alert was powered by storytelling technology and MarketBeat financial data to provide readers with the fastest, most accurate reports. This story was reviewed by the MarketBeat editorial team prior to publication. Please send any questions or comments about this story to [emailÂ protected]
Should you invest $ 1,000 in Rent-A-Center now?
Before you consider Rent-A-Center, you’ll want to hear this.
MarketBeat tracks Wall Street’s top-rated and top-performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat identified the five stocks that top analysts quietly whisper to their clients to buy now before the larger market takes hold ofâ¦ and Rent-A-Center was not on the list.
While Rent-A-Center currently has a âBuyâ rating among analysts, top-rated analysts believe these five stocks are better buys.
See the 5 actions here