Regional Management Corp. (NYSE:RM) Shareholders to Get $0.30 Quarterly Dividend

Key Points

• Regional Management declared a quarterly dividend of $0.30 per share, payable December 16 to shareholders of record November 18. The dividend implies $1.20 in annualized payments and a 3.6% yield, with an 18.3% payout ratio.
• The company reported quarterly EPS of $1.61, exceeding analyst expectations of $1.47, while revenue of $178.78 million also topped estimates.
• Regional Management shares opened at $33.77, up 2.7%, while institutional investors own nearly 98.9% of the stock; insider activity included a CEO purchase but net insider selling over the past three months.

Regional Management Corp. (NYSE:RM - Get Free Report) declared a quarterly dividend on Wednesday, October 28th. Investors of record on Wednesday, November 18th will be paid a dividend of $0.30 per share by the credit services provider on Wednesday, December 16th. This represents a $1.20 annualized dividend and a yield of 3.6%. The ex-dividend date of this dividend is Wednesday, November 18th.

Regional Management has raised its dividend payment by an average of 0.4% annually over the last three years. Regional Management has a payout ratio of 18.3% indicating that its dividend is sufficiently covered by earnings.

Regional Management Stock Up 2.7%

Regional Management stock opened at $33.77 on Thursday. The firm has a market cap of $311.56 million, a price-to-earnings ratio of 7.11 and a beta of 1.02. 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 fifty-two week low of $29.89 and a fifty-two week high of $44.29. The firm has a fifty day moving average price of $32.74 and a two-hundred day moving average price of $35.36.

Regional Management (NYSE:RM - Get Free Report) last released its quarterly earnings results on Wednesday, October 28th. The credit services provider reported $1.61 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.47 by $0.14. The company had revenue of $178.78 million during the quarter, compared to analysts' expectations of $174.69 million. Regional Management had a net margin of 6.98% and a return on equity of 12.49%.

Insiders Place Their Bets

In related news, CEO Lakhbir Lamba purchased 3,500 shares of Regional Management stock in a transaction on Wednesday, August 12th. The stock was purchased at an average cost of $31.76 per share, with a total value of $111,160.00. Following the acquisition, the chief executive officer directly owned 55,734 shares in the company, valued at approximately $1,770,111.84. This trade represents a 6.70% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this link. Also, major shareholder Fund L.P. Forager sold 10,401 shares of the firm's stock in a transaction on Thursday, September 17th. The stock was 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 in the company, valued at $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. Over the last three months, insiders sold 29,722 shares of company stock valued at $958,879. Insiders own 10.90% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. BlackRock Inc. acquired a new stake in Regional Management during the second quarter worth about $47,514,000. Basswood Capital Management L.L.C. bought a new stake in shares of Regional Management in the 2nd quarter valued at approximately $35,244,000. Tieton Capital Management LLC bought a new stake in Regional Management in the second quarter valued at $13,112,000. Sei Investments Co. grew its holdings in shares of Regional Management by 117.9% in the 1st 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 last quarter. Finally, Arrowstreet Capital Limited Partnership increased its holdings in shares of Regional Management by 2.5% during the first quarter. Arrowstreet Capital Limited Partnership now owns 108,439 shares of the credit services provider's stock worth $3,497,000 after buying an additional 2,618 shares in the last quarter. Institutional investors and hedge funds own 98.89% of the company's stock.

About Regional Management

Regional Management Corp. NYSE: RM is a consumer finance company that provides credit products to individuals who may have limited access to traditional bank financing. The company primarily offers small and medium-sized installment loans, including secured and unsecured personal loans, through a network of local branches and digital channels.

Its services may also include optional credit-related products, such as insurance and other ancillary offerings associated with consumer lending.

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