Bank of New York Mellon Corp Invests $3.16 Million in Regional Management Corp. $RM

Key Points

• Bank of New York Mellon purchased 76,776 shares of Regional Management worth approximately $3.16 million, giving it a 0.83% stake. Institutional investors collectively own 98.89% of the company.
• Regional Management reported quarterly EPS of $0.85, exceeding the $0.81 consensus estimate, while revenue of $168.01 million also topped expectations. Analysts maintain a “Moderate Buy” consensus with a $43.00 target price.
• The company declared a quarterly dividend of $0.30 per share, equivalent to $1.20 annually and a 3.6% yield. Shares opened at $33.51, near the lower end of their 52-week range.

Bank of New York Mellon Corp purchased a new stake in Regional Management Corp. (NYSE:RM - Free Report) in the 2nd quarter, according to the company in its most recent filing with the SEC. The institutional investor purchased 76,776 shares of the credit services provider's stock, valued at approximately $3,163,000. Bank of New York Mellon Corp owned about 0.83% of Regional Management at the end of the most recent reporting period.

Other large investors have also recently bought and sold shares of the company. LSV Asset Management grew its position in Regional Management by 7.7% during the 4th quarter. LSV Asset Management now owns 338,832 shares of the credit services provider's stock worth $13,130,000 after purchasing an additional 24,232 shares during the last quarter. Lazard Asset Management LLC purchased a new stake in shares of Regional Management in the first quarter valued at about $1,004,000. Sei Investments Co. raised its holdings in shares of Regional Management by 117.9% in the first quarter. Sei Investments Co. now owns 157,151 shares of the credit services provider's stock valued at $5,068,000 after buying an additional 85,040 shares during the last quarter. Advisory Services Network LLC acquired a new stake in shares of Regional Management during the third quarter worth about $39,000. Finally, Wexford Capital LP acquired a new stake in shares of Regional Management during the third quarter worth about $32,000. Institutional investors and hedge funds own 98.89% of the company's stock.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on RM. Weiss Ratings cut Regional Management from a "hold (c+)" rating to a "hold (c)" rating in a research report on Friday, August 7th. Citizens Jmp decreased their price objective on 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. Citigroup reiterated a "market outperform" rating on shares of Regional Management in a research note on Thursday, July 30th. Finally, Wall Street Zen lowered Regional Management from a "buy" rating to a "hold" rating in a report on Sunday, August 9th. Two equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $43.00.

Insiders Place Their Bets

In other Regional Management news, CAO Steven B. Barnette sold 3,274 shares of the business's stock in a transaction on Friday, July 10th. The shares were sold at an average price of $43.30, for a total transaction of $141,764.20. Following the sale, the chief accounting officer directly owned 13,472 shares in the company, valued at approximately $583,337.60. The trade was a 19.55% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Lakhbir S. Lamba bought 6,500 shares of the firm's stock in a transaction on Tuesday, August 11th. The shares were bought at an average price of $31.59 per share, for a total transaction of $205,335.00. Following the completion of the transaction, the chief executive officer directly owned 52,234 shares in the company, valued at approximately $1,650,072.06. This represents a 14.21% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have sold 5,074 shares of company stock worth $216,028 in the last ninety days. 10.90% of the stock is currently owned by corporate insiders.

Regional Management Stock Down 0.5%

Shares of NYSE:RM opened at $33.51 on Monday. The company has a market cap of $309.26 million, a price-to-earnings ratio of 7.05 and a beta of 1.00. The firm's 50-day simple moving average is $37.22 and its 200-day simple moving average is $35.87. The company has a quick ratio of 64.04, a current ratio of 64.04 and a debt-to-equity ratio of 4.41. Regional Management Corp. has a fifty-two week low of $30.46 and a fifty-two week high of $46.00.

Regional Management (NYSE:RM - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The credit services provider reported $0.85 earnings per share (EPS) for the quarter, topping the consensus estimate 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 firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Investors of record on Wednesday, August 19th will be issued a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a yield of 3.6%. The ex-dividend date of this dividend is Wednesday, August 19th. Regional Management's dividend payout ratio is currently 25.26%.

Regional Management Company Profile

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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