Diversified Management Inc. Cuts Position in FirstCash Holdings, Inc. $FCFS

Key Points

• Diversified Management Inc. cut its FirstCash stake by 85.6% in the second quarter, selling 10,151 shares and retaining 1,703 shares worth approximately $368,000. Institutional investors collectively own 80.3% of the company.
• FirstCash reported stronger-than-expected quarterly results, with EPS of $2.50 versus the $2.39 estimate and revenue of $1.07 billion, up 29.4% year over year.
• Analyst sentiment remains positive, with an average “Buy” rating and a $249 price target; the company also announced a quarterly dividend of $0.42 per share, representing a 0.8% yield.

Diversified Management Inc. decreased its position in FirstCash Holdings, Inc. (NASDAQ:FCFS - Free Report) by 85.6% during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 1,703 shares of the company's stock after selling 10,151 shares during the quarter. Diversified Management Inc.'s holdings in FirstCash were worth $368,000 at the end of the most recent quarter.

Other institutional investors also recently added to or reduced their stakes in the company. Arista Wealth Management LLC increased its position in shares of FirstCash by 1.4% in the 2nd quarter. Arista Wealth Management LLC now owns 4,193 shares of the company's stock valued at $907,000 after purchasing an additional 56 shares during the last quarter. Apella Capital LLC acquired a new stake in shares of FirstCash in the 2nd quarter valued at $253,000. GAMMA Investing LLC lifted its position in shares of FirstCash by 24.5% during the 2nd quarter. GAMMA Investing LLC now owns 3,180 shares of the company's stock worth $688,000 after purchasing an additional 625 shares during the last quarter. Avior Wealth Management LLC purchased a new stake in shares of FirstCash during the 2nd quarter worth $211,000. Finally, Harbor Investment Advisory LLC lifted its position in shares of FirstCash by 591.2% during the 2nd quarter. Harbor Investment Advisory LLC now owns 940 shares of the company's stock worth $203,000 after purchasing an additional 804 shares during the last quarter. Hedge funds and other institutional investors own 80.30% of the company's stock.

FirstCash Stock Down 0.2%

Shares of NASDAQ:FCFS opened at $208.37 on Wednesday. The firm has a 50 day simple moving average of $215.36 and a 200-day simple moving average of $204.65. FirstCash Holdings, Inc. has a twelve month low of $135.64 and a twelve month high of $235.97. The company has a current ratio of 4.89, a quick ratio of 3.51 and a debt-to-equity ratio of 1.01. The company has a market capitalization of $9.04 billion, a PE ratio of 23.79 and a beta of 0.53.

FirstCash (NASDAQ:FCFS - Get Free Report) last posted its earnings results on Thursday, July 23rd. The company reported $2.50 EPS for the quarter, beating analysts' consensus estimates of $2.39 by $0.11. FirstCash had a net margin of 9.42% and a return on equity of 19.65%. The firm had revenue of $1.07 billion for the quarter, compared to the consensus estimate of $1.03 billion. During the same period last year, the firm posted $1.34 EPS. The company's revenue was up 29.4% on a year-over-year basis. On average, equities analysts predict that FirstCash Holdings, Inc. will post 11.85 EPS for the current fiscal year.

FirstCash Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 14th will be paid a $0.42 dividend. This represents a $1.68 annualized dividend and a yield of 0.8%. The ex-dividend date is Friday, August 14th. FirstCash's dividend payout ratio is currently 19.18%.

Insider Transactions at FirstCash

In other news, COO Thomas Brent Stuart sold 10,000 shares of the business's stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $228.49, for a total value of $2,284,900.00. Following the completion of the sale, the chief operating officer directly owned 140,846 shares of the company's stock, valued at approximately $32,181,902.54. The trade was a 6.63% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Howard F. Hambleton sold 3,000 shares of the company's stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $226.41, for a total value of $679,230.00. Following the completion of the sale, the insider directly owned 32,406 shares of the company's stock, valued at approximately $7,337,042.46. This trade represents a 8.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 26,000 shares of company stock worth $5,917,004. 2.86% of the stock is owned by company insiders.

Analyst Ratings Changes

Several research firms recently commented on FCFS. Loop Capital raised FirstCash from a "hold" rating to a "buy" rating and set a $255.00 target price on the stock in a report on Monday. TD Cowen lifted their price target on FirstCash from $235.00 to $240.00 and gave the stock a "buy" rating in a report on Tuesday, July 7th. Canaccord Genuity Group upped their price objective on FirstCash from $242.00 to $252.00 and gave the stock a "buy" rating in a research report on Friday, April 24th. Zacks Research downgraded FirstCash from a "strong-buy" rating to a "hold" rating in a report on Tuesday, June 23rd. Finally, Weiss Ratings raised FirstCash from a "buy (b)" rating to a "buy (b+)" rating in a research report on Friday. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, the company has an average rating of "Buy" and an average target price of $249.00.

FirstCash Profile

FirstCash, Inc NASDAQ: FCFS is a leading integrated operator of pawn stores and provider of short-term consumer loan services in the United States and Mexico. Through its retail pawn outlets, FirstCash offers collateral-based loans secured by personal property, enabling customers to access liquidity without a credit history or traditional bank account. The company also purchases, trades and sells a broad range of secondhand merchandise, including electronics, jewelry and power tools, through its network of conveniently located stores.

In addition to its pawn-broking activities, FirstCash provides unsecured consumer loans designed to meet urgent cash needs.

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