Rent-A-Center (NASDAQ:RCII) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report issued 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.”
Several other brokerages have also recently commented on RCII. Raymond James Financial reiterated a “market perform” rating on shares of Rent-A-Center in a research note on Wednesday, October 25th. Stifel Nicolaus reiterated a “hold” rating and issued a $10.50 price objective on shares of Rent-A-Center in a research note on Wednesday, November 1st. Loop Capital set a $8.00 price objective on shares of Rent-A-Center and gave the company a “sell” rating in a research note on Tuesday, October 31st. Jefferies Group reduced their price objective on shares of Rent-A-Center from $12.00 to $11.00 and set a “hold” rating for the company in a research note on Wednesday, November 1st. Finally, BidaskClub upgraded shares of Rent-A-Center from a “sell” rating to a “hold” rating in a research note on Wednesday, December 6th. Two investment analysts have rated the stock with a sell rating, five have assigned a hold rating and two have given a buy rating to the company’s stock. The company has an average rating of “Hold” and a consensus target price of $11.21.
Rent-A-Center (NASDAQ:RCII) last issued its earnings results on Monday, October 30th. The company reported ($0.15) earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of ($0.08) by ($0.07). The firm had revenue of $643.97 million during the quarter, compared to analysts’ expectations of $649.09 million. Rent-A-Center had a negative net margin of 6.35% and a negative return on equity of 0.66%. The firm’s revenue was down 7.2% on a year-over-year basis. During the same period in the previous year, the firm earned $0.11 EPS. analysts forecast that Rent-A-Center will post -0.2 EPS for the current year.
Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Frontier Capital Management Co. LLC lifted its stake in shares of Rent-A-Center by 2.2% in the third quarter. Frontier Capital Management Co. LLC now owns 3,215,402 shares of the company’s stock valued at $36,913,000 after purchasing an additional 68,605 shares during the period. Arlington Value Capital LLC raised its position in Rent-A-Center by 85.2% during the second quarter. Arlington Value Capital LLC now owns 2,722,514 shares of the company’s stock worth $31,907,000 after acquiring an additional 1,252,756 shares during the last quarter. Schwab Charles Investment Management Inc. raised its position in Rent-A-Center by 1.7% during the third quarter. Schwab Charles Investment Management Inc. now owns 1,577,669 shares of the company’s stock worth $18,112,000 after acquiring an additional 25,839 shares during the last quarter. JPMorgan Chase & Co. raised its position in Rent-A-Center by 15.4% during the third quarter. JPMorgan Chase & Co. now owns 1,418,648 shares of the company’s stock worth $16,357,000 after acquiring an additional 189,506 shares during the last quarter. Finally, Parametric Portfolio Associates LLC raised its position in Rent-A-Center by 28.8% during the second quarter. Parametric Portfolio Associates LLC now owns 582,062 shares of the company’s stock worth $6,822,000 after acquiring an additional 130,293 shares during the last quarter.
Rent-A-Center Company Profile
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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