Rent-A-Center Inc. (RCII) Debt Trading 3.1% Lower

Rent-A-Center Inc. (RCII) Debt Trading 3.1% Lower

An issue of Rent-A-Center Inc. (NASDAQ:RCII) debt fell 3.1% as a percentage of its face value during trading on Friday. The high-yield debt issue has a 4.75% coupon and will mature on May 1, 2021. The debt is now trading at $75.63. Price changes in a company’s debt in credit markets sometimes anticipate parallel changes in its share price.

RCII has been the topic of a number of analyst reports. Sidoti lowered Rent-A-Center from a “buy” rating to a “neutral” rating in a research report on Tuesday, November 15th. Jefferies Group LLC began coverage on Rent-A-Center in a research report on Thursday, October 13th. They issued a “hold” rating and a $10.00 price target on the stock. Zacks Investment Research upgraded Rent-A-Center from a “sell” rating to a “hold” rating in a research report on Monday, October 3rd. Raymond James Financial, Inc. restated a “market perform” rating on shares of Rent-A-Center in a research report on Tuesday, December 6th. Finally, Stephens began coverage on Rent-A-Center in a research report on Thursday, January 12th. They set an “equal weight” rating on the stock. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and one has given a buy rating to the company’s stock. Rent-A-Center currently has an average rating of “Hold” and an average price target of $17.00.

Rent-A-Center Inc. (NASDAQ:RCII) opened at 8.01 on Friday. Rent-A-Center Inc. has a 1-year low of $7.76 and a 1-year high of $16.37. The firm’s market capitalization is $425.72 million. The company’s 50-day moving average price is $10.72 and its 200-day moving average price is $11.54.

Rent-A-Center (NASDAQ:RCII) last released its quarterly earnings results on Wednesday, October 26th. The company reported $0.11 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.09 by $0.02. Rent-A-Center had a positive return on equity of 16.57% and a negative net margin of 28.44%. The business had revenue of $693.90 million for the quarter, compared to the consensus estimate of $701.27 million. During the same quarter last year, the business posted $0.47 earnings per share. The company’s revenue for the quarter was down 12.3% on a year-over-year basis. Equities research analysts expect that Rent-A-Center Inc. will post $0.90 earnings per share for the current fiscal year.

The business also recently disclosed a quarterly dividend, which was paid on Thursday, January 26th. Stockholders of record on Thursday, January 5th were issued a $0.08 dividend. The ex-dividend date was Tuesday, January 3rd. This represents a $0.32 annualized dividend and a dividend yield of 4.00%. Rent-A-Center’s dividend payout ratio is currently -1.95%.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its position in Rent-A-Center by 18.8% in the second quarter. Vanguard Group Inc. now owns 4,597,398 shares of the company’s stock valued at $56,456,000 after buying an additional 726,627 shares in the last quarter. BlackRock Fund Advisors increased its position in Rent-A-Center by 8.5% in the third quarter. BlackRock Fund Advisors now owns 3,711,500 shares of the company’s stock valued at $46,913,000 after buying an additional 291,330 shares in the last quarter. JPMorgan Chase & Co. increased its position in Rent-A-Center by 636.5% in the third quarter. JPMorgan Chase & Co. now owns 1,929,963 shares of the company’s stock valued at $24,394,000 after buying an additional 1,667,921 shares in the last quarter. Pzena Investment Management LLC increased its position in Rent-A-Center by 2.7% in the third quarter. Pzena Investment Management LLC now owns 1,825,479 shares of the company’s stock valued at $23,074,000 after buying an additional 48,071 shares in the last quarter. Finally, Brandes Investment Partners LP increased its position in Rent-A-Center by 2.5% in the third quarter. Brandes Investment Partners LP now owns 1,467,550 shares of the company’s stock valued at $18,550,000 after buying an additional 35,724 shares in the last quarter. Hedge funds and other institutional investors own 96.71% of the company’s stock.

About Rent-A-Center

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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