Regional Management (NYSE:RM) Downgraded by Wall Street Zen to Hold

Key Points

• Wall Street Zen downgraded Regional Management to “Hold” from “Buy,” while the broader analyst consensus remains “Moderate Buy” with a $43 price target.
• Regional Management shares opened at $31.75, near the lower end of their 12-month range, despite the company beating quarterly expectations with earnings of $0.85 per share and revenue of $168.01 million.
• Institutional investors own 98.89% of the stock, with major firms including BlackRock and Basswood Capital establishing new positions; insiders own 10.9% and have been net sellers recently.

Regional Management (NYSE:RM - Get Free Report) was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Sunday, Wall Street Zen reports.

Other equities analysts have also issued research reports about the stock. Citizens Jmp dropped their price target on shares of Regional Management from $45.00 to $43.00 and set a "market outperform" rating on the stock in a research report on Thursday, July 30th. Weiss Ratings raised shares of Regional Management from a "hold (c)" rating to a "hold (c+)" rating in a research report on Monday, September 21st. Finally, Citigroup restated a "market outperform" rating on shares of Regional Management in a report on Thursday, July 30th. Two analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $43.00.

Regional Management Stock Up 2.5%

RM stock opened at $31.75 on Friday. The company has a debt-to-equity ratio of 4.41, a current ratio of 64.04 and a quick ratio of 64.04. Regional Management has a 12 month low of $29.89 and a 12 month high of $44.29. The firm has a 50 day simple moving average of $33.07 and a 200 day simple moving average of $35.69. The firm has a market cap of $293.06 million, a PE ratio of 6.68 and a beta of 1.02.

Regional Management (NYSE:RM - Get Free Report) last posted its earnings results on Wednesday, July 29th. The credit services provider reported $0.85 earnings per share for the quarter, beating the consensus estimate of $0.81 by $0.04. Regional Management had a return on equity of 12.49% and a net margin of 6.98%.The company had revenue of $168.01 million for the quarter, compared to analyst estimates of $165.69 million.

Insider Activity at Regional Management

In other news, CEO Lakhbir S. Lamba acquired 6,500 shares of the firm's stock in a transaction dated Tuesday, August 11th. The shares were bought at an average price of $31.59 per share, with a total value of $205,335.00. Following the acquisition, the chief executive officer owned 52,234 shares of the company's stock, valued at $1,650,072.06. This trade represents a 14.21% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, major shareholder Fund L.P. Forager sold 10,401 shares of the business's stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $32.22, for a total value of $335,120.22. Following the sale, the insider owned 919,136 shares in the company, valued at approximately $29,614,561.92. This represents a 1.12% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 32,796 shares of company stock worth $1,093,641 over the last three months. Company insiders own 10.90% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. BlackRock Inc. bought a new stake in shares of Regional Management during the second quarter worth $47,514,000. Basswood Capital Management L.L.C. bought a new position in Regional Management in the second quarter valued at about $35,244,000. Tieton Capital Management LLC acquired a new stake in Regional Management in the second quarter worth about $13,112,000. Sei Investments Co. increased its position in Regional Management by 117.9% in the first quarter. Sei Investments Co. now owns 157,151 shares of the credit services provider's stock worth $5,068,000 after purchasing an additional 85,040 shares during the period. Finally, Bank of New York Mellon Corp bought a new stake in Regional Management during the 2nd quarter worth about $3,163,000. 98.89% of the stock is owned by institutional investors.

About Regional Management

Regional Management Corp. is a specialty consumer finance company that provides credit products to customers who may have limited access to traditional bank financing. The company operates primarily through its Regional Finance branch network and focuses on serving non-prime consumers.

Its principal products include small and large installment loans, generally used for personal, household and other consumer purposes. Regional Management may also offer optional credit-related insurance and ancillary products in connection with its loans, subject to applicable laws and regulations.

Founded in 1987 and headquartered in Greer, South Carolina, the company serves customers across a network of branches concentrated in the southeastern and southwestern United States.

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