Lazard Asset Management LLC Makes New Investment in Regional Management Corp. $RM

Key Points

• Lazard Asset Management initiated a roughly $1.0 million position in Regional Management, buying 31,138 shares. Institutional investors collectively own 98.89% of the company.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $43 price target, despite one downgrade from “strong buy” to “buy.” The company recently exceeded quarterly earnings and revenue expectations.
• Regional Management’s stock opened at $32.51, down 3.9%, while the company announced a quarterly dividend of $0.30 per share, representing a 3.7% yield. Insiders have sold 8,874 shares worth approximately $350,208 over the past 90 days.

Lazard Asset Management LLC bought a new position in shares of Regional Management Corp. (NYSE:RM - Free Report) in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm bought 31,138 shares of the credit services provider's stock, valued at approximately $1,004,000. Lazard Asset Management LLC owned about 0.34% of Regional Management at the end of the most recent quarter.

A number of other hedge funds have also recently made changes to their positions in the stock. Royal Bank of Canada increased its stake in Regional Management by 2.4% in the 1st quarter. Royal Bank of Canada now owns 16,200 shares of the credit services provider's stock worth $487,000 after buying an additional 375 shares during the period. AQR Capital Management LLC bought a new position in Regional Management in the 1st quarter worth about $201,000. Goldman Sachs Group Inc. grew its stake in 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 acquiring an additional 60,744 shares in the last quarter. Empowered Funds LLC increased its position in shares of Regional Management by 7.2% during the first quarter. Empowered Funds LLC now owns 46,851 shares of the credit services provider's stock worth $1,411,000 after acquiring an additional 3,160 shares during the period. Finally, Jane Street Group LLC bought a new stake in shares of Regional Management during the first quarter valued at approximately $282,000. 98.89% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on the company. Citigroup reiterated a "market outperform" rating on shares of Regional Management in a report on Thursday, July 30th. Wall Street Zen downgraded Regional Management from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 1st. Citizens Jmp decreased their target price 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. Finally, Weiss Ratings upgraded Regional Management from a "hold (c)" rating to a "hold (c+)" rating in a report on Friday, June 26th. Two analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $43.00.

Insider Buying and Selling at Regional Management

In other news, Director Sandra K. Johnson sold 1,000 shares of Regional Management stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $36.00, for a total value of $36,000.00. Following the transaction, the director directly owned 21,933 shares in the company, valued at approximately $789,588. This trade represents a 4.36% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, SVP Catherine R. Atwood sold 3,000 shares of the company's stock in a transaction on Monday, May 11th. The stock was sold at an average price of $35.06, for a total value of $105,180.00. Following the sale, the senior vice president owned 40,942 shares of the company's stock, valued at $1,435,426.52. This trade represents a 6.83% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 8,874 shares of company stock valued at $350,208. 10.90% of the stock is currently owned by corporate insiders.

Regional Management Trading Down 3.9%

NYSE RM opened at $32.51 on Thursday. The company has a debt-to-equity ratio of 4.41, a quick ratio of 59.88 and a current ratio of 64.04. The company has a market capitalization of $300.03 million, a price-to-earnings ratio of 6.84 and a beta of 1.02. The company's 50-day simple moving average is $38.99 and its two-hundred day simple moving average is $36.40. Regional Management Corp. has a one year low of $30.46 and a one year high of $46.00.

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, topping the consensus estimate of $0.81 by $0.04. The firm had revenue of $168.01 million during the quarter, compared to analysts' expectations of $165.69 million. Regional Management had a net margin of 6.98% and a return on equity of 12.49%.

Regional Management Announces Dividend

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

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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