Regional Management Corp. $RM Shares Sold by Wellington Management Group LLP

Key Points

• Wellington Management reduced its Regional Management stake by 21.8% in the second quarter, selling 34,800 shares and retaining 124,788 shares, or about 1.35% of the company. Institutional investors collectively own 98.89% of RM.
• Regional Management reported quarterly earnings of $0.85 per share, beating the $0.81 consensus estimate, while revenue of $168.01 million also exceeded expectations.
• The company declared a quarterly dividend of $0.30 per share, equivalent to a $1.20 annualized payout and a 3.7% yield. RM shares opened at $32.78, below analysts’ average price target of $43.00.

Wellington Management Group LLP lowered its position in shares of Regional Management Corp. (NYSE:RM - Free Report) by 21.8% during the second quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 124,788 shares of the credit services provider's stock after selling 34,800 shares during the quarter. Wellington Management Group LLP owned approximately 1.35% of Regional Management worth $5,141,000 as of its most recent filing with the SEC.

Other hedge funds have also recently bought and sold shares of the company. BlackRock Inc. acquired a new position in Regional Management in the 2nd quarter valued at $47,514,000. Basswood Capital Management L.L.C. purchased a new position in shares of Regional Management during the 2nd quarter worth $35,244,000. Tieton Capital Management LLC purchased a new position in shares of Regional Management during the 2nd quarter worth $13,112,000. Sei Investments Co. boosted its holdings in shares of Regional Management by 117.9% during the first quarter. Sei Investments Co. now owns 157,151 shares of the credit services provider's stock worth $5,068,000 after purchasing an additional 85,040 shares during the last quarter. Finally, Bank of New York Mellon Corp purchased a new stake in shares of Regional Management in the second quarter valued at $3,163,000. Institutional investors and hedge funds own 98.89% of the company's stock.

Regional Management Stock Down 0.7%

Shares of NYSE RM opened at $32.78 on Thursday. The stock has a market capitalization of $302.61 million, a PE ratio of 6.90 and a beta of 1.00. The company has a quick ratio of 64.04, a current ratio of 64.04 and a debt-to-equity ratio of 4.41. The firm has a fifty day moving average of $36.71 and a 200-day moving average of $35.83. Regional Management Corp. has a 52-week low of $30.46 and a 52-week high of $46.00.

Regional Management (NYSE:RM - Get Free Report) last issued its 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. Regional Management had a return on equity of 12.49% and a net margin of 6.98%.The business had revenue of $168.01 million for the quarter, compared to analyst estimates of $165.69 million.

Regional Management Announces Dividend

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

Insider Transactions at Regional Management

In other news, CAO Steven B. Barnette sold 3,274 shares of Regional Management 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 directly owned 13,472 shares of the company's stock, valued at $583,337.60. The trade was a 19.55% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, CEO Lakhbir Lamba bought 6,500 shares of the firm's stock in a transaction dated Tuesday, August 11th. The shares were purchased at an average price of $31.59 per share, with a total value of $205,335.00. Following the acquisition, the chief executive officer directly owned 52,234 shares in the company, valued at approximately $1,650,072.06. This trade represents a 14.21% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last 90 days, insiders sold 5,074 shares of company stock worth $216,028. Company insiders own 10.90% of the company's stock.

Wall Street Analysts Forecast Growth

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

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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