855,425 Shares in Regional Management Corp. $RM Acquired by Basswood Capital Management L.L.C.

Key Points

• Basswood Capital Management acquired 855,425 shares of Regional Management, valued at approximately $35.2 million, giving it a 9.27% stake and making RM its 19th-largest portfolio holding.
• Regional Management’s shares traded down 2.4% to $32.54, below their 50-day moving average, despite the company beating quarterly earnings and revenue expectations with EPS of $0.85 and revenue of $168.01 million.
• The company announced a quarterly dividend of $0.30 per share, implying a 3.7% annualized yield; analysts maintain an overall “Moderate Buy” rating with a consensus price target of $43.

Basswood Capital Management L.L.C. purchased a new position in shares of Regional Management Corp. (NYSE:RM - Free Report) in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund purchased 855,425 shares of the credit services provider's stock, valued at approximately $35,244,000. Regional Management makes up 1.4% of Basswood Capital Management L.L.C.'s portfolio, making the stock its 19th largest position. Basswood Capital Management L.L.C. owned about 9.27% of Regional Management as of its most recent SEC filing.

A number of other large investors also recently modified their holdings of the company. Wexford Capital LP acquired a new stake in shares of Regional Management in the 3rd quarter valued at $32,000. Legal & General Group Plc acquired a new position in shares of Regional Management during the second quarter worth $33,000. Advisory Services Network LLC acquired a new position in shares of Regional Management during the third quarter worth $39,000. Kestra Advisory Services LLC purchased a new position in Regional Management in the fourth quarter valued at $49,000. Finally, BNP Paribas Financial Markets increased its holdings in Regional Management by 45.3% in the third quarter. BNP Paribas Financial Markets now owns 2,077 shares of the credit services provider's stock valued at $81,000 after buying an additional 648 shares during the last quarter. 98.89% of the stock is owned by hedge funds and other institutional investors.

Regional Management Trading Down 2.4%

NYSE RM opened at $32.54 on Thursday. The firm's fifty day moving average price is $38.04 and its 200 day moving average price is $35.96. Regional Management Corp. has a 12 month low of $30.46 and a 12 month high of $46.00. The company has a debt-to-equity ratio of 4.41, a current ratio of 64.04 and a quick ratio of 64.04. The company has a market capitalization of $300.34 million, a price-to-earnings ratio of 6.85 and a beta of 1.02.

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

Regional Management Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Stockholders of record on Wednesday, August 19th will be given a dividend of $0.30 per share. The ex-dividend date is Wednesday, August 19th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 3.7%. Regional Management's payout ratio is 25.26%.

Analyst Upgrades and Downgrades

RM has been the subject of a number of recent analyst reports. Citigroup reaffirmed a "market outperform" rating on shares of Regional Management in a report on Thursday, July 30th. Citizens Jmp dropped their price objective on Regional Management from $45.00 to $43.00 and set a "market outperform" rating on the stock in a report on Thursday, July 30th. Wall Street Zen lowered Regional Management from a "buy" rating to a "hold" rating in a research report on Sunday, August 9th. Finally, Weiss Ratings cut Regional Management from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday, August 7th. Two analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $43.00.

Insider Activity

In related news, CAO Steven B. Barnette sold 3,274 shares of the firm's stock in a transaction that occurred on Friday, July 10th. The stock was sold at an average price of $43.30, for a total transaction of $141,764.20. Following the transaction, the chief accounting officer owned 13,472 shares in the company, valued at $583,337.60. This trade represents a 19.55% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Lakhbir S. Lamba purchased 3,500 shares of the business's stock in a transaction on Wednesday, August 12th. The shares were purchased at an average cost of $31.76 per share, for a total transaction of $111,160.00. Following the transaction, the chief executive officer owned 55,734 shares of the company's stock, valued at $1,770,111.84. This trade represents a 6.70% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders sold a total of 5,074 shares of company stock valued at $216,028 over the last three months. Company insiders own 10.90% of the company's stock.

About Regional Management

Regional Management Corp., headquartered in Wilmington, North Carolina, is a consumer finance company specializing in installment loan products for underbanked individuals. Since its founding in 1977, the company has developed a network of field-based branches alongside a digital platform to offer credit solutions in rural and small-town markets across the United States.

The company's core offerings include consumer installment loans for everyday purchases, auto refinancing and lease buyouts, as well as ancillary services such as insurance referrals.

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