FirstCash (NASDAQ:FCFS) Stock Price Target Lowered at TD Cowen

Key Points

• TD Cowen lowered FirstCash’s price target from $242 to $235 but maintained a “buy” rating, implying roughly 28% potential upside from the reported share price.
• FirstCash exceeded quarterly expectations, reporting $2.68 in EPS on $1.10 billion in revenue, with revenue up 17.7% year over year. Analysts’ consensus view remains a “Moderate Buy,” with an average price target of $251.25.
• The company’s pawn business showed strong growth, while American First Finance remained a drag; insiders sold shares recently, and a law firm announced an investigation into potential securities-law violations, adding headline risk.

FirstCash (NASDAQ:FCFS - Get Free Report) had its target price dropped by investment analysts at TD Cowen from $242.00 to $235.00 in a report released on Friday, Benzinga reports. The brokerage currently has a "buy" rating on the stock. TD Cowen's price target would suggest a potential upside of 28.15% from the stock's current price.

FCFS has been the subject of several other reports. Loop Capital raised FirstCash from a "hold" rating to a "buy" rating and set a $255.00 price objective for the company in a research report on Monday, August 10th. Wall Street Zen lowered shares of FirstCash from a "buy" rating to a "hold" rating in a research note on Saturday, October 10th. Stephens reissued an "overweight" rating and set a $250.00 price target on shares of FirstCash in a research report on Thursday, October 1st. Canaccord Genuity Group increased their price target on FirstCash from $252.00 to $265.00 and gave the company a "buy" rating in a research report on Thursday, October 15th. Finally, Weiss Ratings upgraded shares of FirstCash from a "buy (b)" rating to a "buy (b+)" rating in a research note on Thursday, October 8th. Five research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $251.25.

FirstCash Trading Down 0.8%

NASDAQ:FCFS opened at $183.37 on Friday. The company has a debt-to-equity ratio of 1.01, a current ratio of 4.89 and a quick ratio of 3.51. The business's 50-day simple moving average is $217.31 and its 200-day simple moving average is $216.31. FirstCash has a fifty-two week low of $146.77 and a fifty-two week high of $238.93. The stock has a market capitalization of $7.95 billion, a PE ratio of 20.91 and a beta of 0.55.

FirstCash (NASDAQ:FCFS - Get Free Report) last released its quarterly earnings results on Thursday, October 22nd. The company reported $2.68 earnings per share for the quarter, beating the consensus estimate of $2.63 by $0.05. FirstCash had a net margin of 9.42% and a return on equity of 19.65%. The company had revenue of $1.10 billion during the quarter, compared to analysts' expectations of $1.07 billion. During the same quarter in the prior year, the company earned $1.86 earnings per share. The business's quarterly revenue was up 17.7% compared to the same quarter last year. Sell-side analysts expect that FirstCash will post 11.59 earnings per share for the current fiscal year.

Insider Buying and Selling

In other FirstCash news, insider Howard Hambleton sold 2,000 shares of FirstCash stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $212.98, for a total value of $425,960.00. Following the completion of the transaction, the insider directly owned 30,406 shares of the company's stock, valued at $6,475,869.88. The trade was a 6.17% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO R. Orr sold 2,000 shares of the stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $216.00, for a total transaction of $432,000.00. Following the sale, the chief financial officer owned 34,734 shares in the company, valued at $7,502,544. The trade was a 5.44% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 14,098 shares of company stock worth $3,051,281 in the last quarter. Insiders own 2.86% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of FCFS. Root Financial Partners LLC grew its holdings in shares of FirstCash by 29.6% during the 1st quarter. Root Financial Partners LLC now owns 245 shares of the company's stock valued at $46,000 after purchasing an additional 56 shares during the last quarter. Arista Wealth Management LLC increased its holdings in shares of FirstCash by 1.4% during the second quarter. Arista Wealth Management LLC now owns 4,193 shares of the company's stock worth $907,000 after buying an additional 56 shares in the last quarter. Farther Finance Advisors LLC lifted its stake in shares of FirstCash by 19.4% in the 3rd quarter. Farther Finance Advisors LLC now owns 505 shares of the company's stock valued at $107,000 after acquiring an additional 82 shares during the last quarter. Midway Capital Research & Management boosted its holdings in shares of FirstCash by 0.6% during the 3rd quarter. Midway Capital Research & Management now owns 13,947 shares of the company's stock valued at $2,946,000 after acquiring an additional 87 shares in the last quarter. Finally, State of Michigan Retirement System grew its position in FirstCash by 1.1% during the 1st quarter. State of Michigan Retirement System now owns 9,315 shares of the company's stock worth $1,751,000 after acquiring an additional 100 shares during the last quarter. Institutional investors own 80.30% of the company's stock.

Trending Headlines about FirstCash

Here are the key news stories impacting FirstCash this week:

• Positive Sentiment: FirstCash delivered record third-quarter revenue of $1.10 billion, up 17.7% year over year, while adjusted EPS of $2.68 exceeded analysts’ $2.63 estimate. GAAP EPS rose 25% to $2.33, and net income increased 22% to $101 million. FirstCash Reports Record Third Quarter Operating Results
• Positive Sentiment: The core pawn business remained the primary catalyst: U.S., Latin American and U.K. pawn revenue and segment earnings each grew 28%. Pawn receivables reached a record $908 million, while the company added 14 stores during the quarter and 42 year to date.
• Positive Sentiment: Management maintained a favorable outlook, calling for continued double-digit pawn revenue growth and operating-margin expansion in the fourth quarter. The potential Ramsdens acquisition could add more than 175 U.K. locations, although it still requires antitrust approval. Can FirstCash Keep Its Pawn Business Momentum?
• Positive Sentiment: The board raised the quarterly dividend 9.5% to $0.46 per share, equal to $1.84 annually, and FirstCash repurchased $123 million of stock in the quarter, bringing year-to-date buybacks to $250 million.
• Neutral Sentiment: American First Finance remains a drag on the consolidated picture. Third-quarter transaction volume fell 15% and net revenue declined 20%, reflecting weakness in furniture and other discretionary retail, though charge-off rates improved modestly.
• Negative Sentiment: The Law Offices of Frank R. Cruz said it is investigating potential securities-law violations related to FirstCash’s disclosures. The announcement does not establish wrongdoing, but it adds legal and headline risk after the stock’s recent decline. Law Offices of Frank R. Cruz Investigation

About FirstCash

FirstCash Holdings, Inc is a specialty financial services and retail company that operates pawn stores in the United States and Mexico. Through its pawn operations, the company provides short-term, collateral-backed loans to consumers who pledge personal property as security. Customers can reclaim their pledged items by repaying the loan and applicable fees within the required period.

The company also generates revenue by selling merchandise that has been forfeited on pawn loans or acquired through other purchasing activities.

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