Rent-A-Center (NASDAQ:RCII) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued 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.”
Several other research analysts also recently issued reports on RCII. Raymond James Financial reissued a “market perform” rating on shares of Rent-A-Center in a research report on Wednesday, October 25th. Stifel Nicolaus reissued a “hold” rating and set a $10.50 price objective on shares of Rent-A-Center in a research report on Wednesday, November 1st. Loop Capital set a $8.00 price objective on shares of Rent-A-Center and gave the stock a “sell” rating in a research report on Tuesday, October 31st. Jefferies Group lowered their price objective on shares of Rent-A-Center from $12.00 to $11.00 and set a “hold” rating on the stock in a research report on Wednesday, November 1st. Finally, BidaskClub raised shares of Rent-A-Center from a “sell” rating to a “hold” rating in a research report on Wednesday, December 6th. Two analysts have rated the stock with a sell rating, five have given a hold rating and two have assigned a buy rating to the company. Rent-A-Center presently has an average rating of “Hold” and a consensus price target of $11.21.
Rent-A-Center (NASDAQ:RCII) last posted its earnings results on Monday, October 30th. The company reported ($0.15) EPS for the quarter, missing the Zacks’ consensus estimate of ($0.08) by ($0.07). The company 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 company’s quarterly revenue was down 7.2% on a year-over-year basis. During the same period last year, the business earned $0.11 earnings per share. equities research analysts forecast that Rent-A-Center will post -0.2 EPS for the current year.
Institutional investors have recently modified their holdings of the business. Schwab Charles Investment Management Inc. boosted 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 acquiring an additional 45,451 shares in the last quarter. BNP Paribas Arbitrage SA boosted 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 acquiring an additional 4,748 shares in the last quarter. Swiss National Bank boosted 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 acquiring an additional 7,300 shares in the last quarter. JPMorgan Chase & Co. boosted 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 acquiring an additional 1,128,785 shares in the last quarter. Finally, AXA purchased a new stake in shares of Rent-A-Center in the second quarter valued at about $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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