Regional Management (NYSE:RM) Raised to Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded Regional Management from “hold” to “buy.” Other analysts remain generally positive, resulting in a consensus “Moderate Buy” rating and an average price target of $43.
• Regional Management exceeded quarterly expectations, reporting $0.85 in EPS versus the $0.81 consensus and revenue of $168.01 million versus estimates of $165.69 million.
• Institutional investors own 98.89% of the company, while insider activity was mixed: the CEO purchased shares, but insiders collectively sold 34,396 shares worth about $1.16 million in the last quarter.

Regional Management (NYSE:RM - Get Free Report) was upgraded by analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued on Saturday, Wall Street Zen reports.

Several other brokerages have also recently commented on RM. Weiss Ratings upgraded shares of Regional Management from a "hold (c)" rating to a "hold (c+)" rating in a report on Monday. Citizens Jmp reduced their price target on shares of Regional Management from $45.00 to $43.00 and set a "market outperform" rating for the company in a research report on Thursday, July 30th. Finally, Citigroup reaffirmed a "market outperform" rating on shares of Regional Management in a research note on Thursday, July 30th. Two equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $43.00.

Regional Management Price Performance

Shares of NYSE:RM opened at $30.82 on Friday. The company has a market capitalization of $284.43 million, a PE ratio of 6.49 and a beta of 1.00. The company has a debt-to-equity ratio of 4.41, a quick ratio of 64.04 and a current ratio of 64.04. The stock has a fifty day moving average of $34.19 and a 200-day moving average of $35.72. Regional Management has a one year low of $30.12 and a one year high of $44.29.

Regional Management (NYSE:RM - Get Free Report) last announced its earnings results on Wednesday, July 29th. The credit services provider reported $0.85 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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.

Insiders Place Their Bets

In other Regional Management news, major shareholder Fund L.P. Forager sold 10,401 shares of Regional Management stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $32.22, for a total transaction of $335,120.22. Following the completion of the sale, the insider owned 919,136 shares of the company's stock, valued at $29,614,561.92. This trade represents a 1.12% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CEO Lakhbir Lamba purchased 3,500 shares of the stock in a transaction dated Wednesday, August 12th. The shares were bought at an average price of $31.76 per share, for a total transaction of $111,160.00. Following the completion of the acquisition, the chief executive officer owned 55,734 shares in the company, valued at $1,770,111.84. This represents a 6.70% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders sold a total of 34,396 shares of company stock worth $1,160,905 in the last quarter. 10.90% of the stock is currently owned by corporate insiders.

Institutional Trading of Regional Management

Several large investors have recently added to or reduced their stakes in RM. Tieton Capital Management LLC bought a new position in Regional Management during the second quarter valued at about $13,112,000. Man Group plc bought a new stake in shares of Regional Management during the 2nd quarter worth about $2,268,000. BlackRock Inc. acquired a new position in shares of Regional Management during the 2nd quarter valued at about $47,514,000. Bank of New York Mellon Corp acquired a new position in shares of Regional Management during the 2nd quarter valued at about $3,163,000. Finally, Globeflex Capital L P bought a new position in shares of Regional Management in the 2nd quarter valued at approximately $1,428,000. 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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