BlackRock Inc. Invests $47.51 Million in Regional Management Corp. $RM

Key Points

• BlackRock acquired 1.15 million shares of Regional Management in the second quarter, worth approximately $47.5 million and representing a 12.5% stake. Institutional investors and hedge funds collectively own 98.89% of the company.
• Analyst sentiment remains positive but moderated: Regional Management has an average “Moderate Buy” rating and a $43 target price, although Citizens JMP recently reduced its target from $45 to $43 and two firms downgraded the stock to “Hold.”
• The company exceeded quarterly expectations with $0.85 in EPS and $168.01 million in revenue, and declared a quarterly dividend of $0.30, equivalent to a 3.7% annual yield. Recent insider activity was mixed, with the CEO buying shares while the chief accounting officer sold stock.

BlackRock Inc. bought 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 13F filing with the SEC. The firm bought 1,153,246 shares of the credit services provider's stock, valued at approximately $47,514,000. BlackRock Inc. owned 12.50% of Regional Management at the end of the most recent reporting period.

Several other institutional investors have also bought and sold shares of the stock. Royal Bank of Canada lifted its holdings in shares of Regional Management by 2.4% during the first quarter. Royal Bank of Canada now owns 16,200 shares of the credit services provider's stock valued at $487,000 after acquiring an additional 375 shares during the period. AQR Capital Management LLC bought a new stake in shares of Regional Management in the 1st quarter worth about $201,000. Goldman Sachs Group Inc. grew its holdings in shares of Regional Management by 45.5% in the 1st quarter. Goldman Sachs Group Inc. now owns 194,374 shares of the credit services provider's stock worth $5,853,000 after purchasing an additional 60,744 shares during the last quarter. Empowered Funds LLC increased its position in shares of Regional Management by 7.2% during the 1st quarter. Empowered Funds LLC now owns 46,851 shares of the credit services provider's stock worth $1,411,000 after purchasing an additional 3,160 shares in the last quarter. Finally, Jane Street Group LLC acquired a new stake in shares of Regional Management during the 1st quarter worth about $282,000. Institutional investors and hedge funds own 98.89% of the company's stock.

Analysts Set New Price Targets

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

Insider Transactions at Regional Management

In other Regional Management news, CAO Steven B. Barnette sold 3,274 shares of the stock in a transaction dated Friday, July 10th. The stock was sold at an average price of $43.30, for a total value of $141,764.20. Following the transaction, the chief accounting officer owned 13,472 shares of the company's stock, valued at approximately $583,337.60. This represents a 19.55% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Lakhbir S. Lamba bought 3,500 shares of Regional Management stock in a transaction on 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 acquisition, the chief executive officer owned 55,734 shares of the company's stock, valued at approximately $1,770,111.84. The trade was a 6.70% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders sold 5,074 shares of company stock valued at $216,028 in the last quarter. 10.90% of the stock is currently owned by corporate insiders.

Regional Management Stock Performance

Shares of NYSE:RM opened at $32.10 on Tuesday. The company has a current ratio of 64.04, a quick ratio of 64.04 and a debt-to-equity ratio of 4.41. Regional Management Corp. has a 1-year low of $30.46 and a 1-year high of $46.00. The stock has a market capitalization of $296.28 million, a P/E ratio of 6.76 and a beta of 1.02. The business has a 50-day moving average price of $37.74 and a two-hundred day moving average price of $35.91.

Regional Management (NYSE:RM - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The credit services provider reported $0.85 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 company had revenue of $168.01 million during the quarter, compared to analysts' expectations of $165.69 million.

Regional Management Announces Dividend

The business 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 $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a yield of 3.7%. The ex-dividend date is Wednesday, August 19th. Regional Management's dividend payout ratio is currently 25.26%.

Regional Management 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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