Royce & Associates LP Cuts Stake in The RMR Group Inc. (NASDAQ:RMR)

Key Points

• Royce & Associates LP has significantly reduced its holdings in The RMR Group, decreasing its position by 76.7% in Q1, now owning 101,715 shares worth approximately $1.69 million.
• The RMR Group recently reported $0.28 earnings per share, falling short of analysts' expectations of $0.30, along with a revenue of $166.67 million compared to an estimate of $214.10 million.
• The company announced a quarterly dividend of $0.45, representing an annualized yield of 10.80% despite a high dividend payout ratio of 148.76%.

Royce & Associates LP trimmed its holdings in shares of The RMR Group Inc. (NASDAQ:RMR - Free Report) by 76.7% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 101,715 shares of the financial services provider's stock after selling 335,727 shares during the quarter. Royce & Associates LP owned 0.32% of The RMR Group worth $1,694,000 at the end of the most recent reporting period.

Several other hedge funds have also recently made changes to their positions in the business. Garner Asset Management Corp raised its position in shares of The RMR Group by 29.9% during the 1st quarter. Garner Asset Management Corp now owns 417,999 shares of the financial services provider's stock valued at $6,960,000 after buying an additional 96,315 shares in the last quarter. Linden Thomas Advisory Services LLC raised its position in shares of The RMR Group by 2.2% during the 1st quarter. Linden Thomas Advisory Services LLC now owns 48,038 shares of the financial services provider's stock valued at $800,000 after buying an additional 1,056 shares in the last quarter. Aviance Capital Partners LLC raised its position in The RMR Group by 187.7% in the 1st quarter. Aviance Capital Partners LLC now owns 55,033 shares of the financial services provider's stock worth $916,000 after purchasing an additional 35,904 shares during the period. CWA Asset Management Group LLC raised its position in The RMR Group by 42.7% in the 1st quarter. CWA Asset Management Group LLC now owns 68,535 shares of the financial services provider's stock worth $1,141,000 after purchasing an additional 20,506 shares during the period. Finally, Exchange Traded Concepts LLC purchased a new stake in The RMR Group in the 1st quarter worth about $248,000. 42.31% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Separately, B. Riley initiated coverage on shares of The RMR Group in a research report on Tuesday, April 22nd. They issued a "buy" rating and a $24.00 price objective on the stock.

The RMR Group Stock Performance

Shares of NASDAQ:RMR traded down $0.29 on Friday, hitting $15.78. 36,616 shares of the company were exchanged, compared to its average volume of 150,781. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.10. The stock's 50 day moving average price is $16.40 and its 200 day moving average price is $16.71. The RMR Group Inc. has a 1-year low of $13.48 and a 1-year high of $26.06. The firm has a market capitalization of $502.91 million, a P/E ratio of 13.05 and a beta of 1.13.

The RMR Group (NASDAQ:RMR - Get Free Report) last issued its earnings results on Tuesday, May 6th. The financial services provider reported $0.28 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.30 by ($0.02). The RMR Group had a return on equity of 5.35% and a net margin of 2.51%. The business had revenue of $166.67 million for the quarter, compared to analysts' expectations of $214.10 million. Sell-side analysts predict that The RMR Group Inc. will post 1.51 EPS for the current year.

The RMR Group Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 14th. Shareholders of record on Monday, July 21st will be issued a $0.45 dividend. The ex-dividend date of this dividend is Monday, July 21st. This represents a $1.80 dividend on an annualized basis and a yield of 11.4%. The RMR Group's payout ratio is presently 148.76%.

About The RMR Group

The RMR Group Inc, through its subsidiary, The RMR Group LLC, provides asset management services in the United States. The company offers management services to its four publicly traded real estate investment trusts, three real estate operating companies, and private capital vehicles. It also provides advisory services to publicly traded mortgage real estate investment trust.