The RMR Group Inc. $RMR Position Cut by Garner Asset Management Corp

Key Points

• Garner Asset Management cut its stake in The RMR Group by 15.3% in Q4, selling 58,227 shares and now holding 321,734 shares worth about $4.79M, making RMR its ninth-largest position.
• The company declared a quarterly dividend of $0.45 (annualized $1.80), implying a 9.2% yield but a high payout ratio of 130.43%, which may raise sustainability concerns.
• RMR has a consensus rating of "Moderate Buy" with a $19 target and trades near its 52-week high (~$19.50) after an EPS beat ($0.20 vs. $0.18) despite revenue missing expectations.

Garner Asset Management Corp cut its stake in shares of The RMR Group Inc. (NASDAQ:RMR - Free Report) by 15.3% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 321,734 shares of the financial services provider's stock after selling 58,227 shares during the period. The RMR Group accounts for about 1.8% of Garner Asset Management Corp's portfolio, making the stock its 9th biggest position. Garner Asset Management Corp owned about 1.00% of The RMR Group worth $4,794,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. NewEdge Advisors LLC raised its position in The RMR Group by 313.1% during the first quarter. NewEdge Advisors LLC now owns 1,483 shares of the financial services provider's stock valued at $25,000 after purchasing an additional 1,124 shares during the period. New York State Common Retirement Fund raised its holdings in shares of The RMR Group by 538.5% in the third quarter. New York State Common Retirement Fund now owns 1,660 shares of the financial services provider's stock worth $26,000 after buying an additional 1,400 shares during the period. Quarry LP purchased a new stake in shares of The RMR Group in the third quarter worth approximately $36,000. State of Alaska Department of Revenue purchased a new stake in shares of The RMR Group in the fourth quarter worth approximately $41,000. Finally, Tower Research Capital LLC TRC raised its holdings in shares of The RMR Group by 442.4% in the second quarter. Tower Research Capital LLC TRC now owns 3,081 shares of the financial services provider's stock worth $50,000 after buying an additional 2,513 shares during the period. 42.31% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

RMR has been the topic of several recent analyst reports. B. Riley Financial reduced their price target on The RMR Group from $24.00 to $21.00 and set a "buy" rating on the stock in a report on Tuesday, March 17th. LADENBURG THALM/SH SH initiated coverage on The RMR Group in a report on Wednesday, January 7th. They issued a "buy" rating and a $17.00 price target on the stock. Zacks Research upgraded The RMR Group from a "strong sell" rating to a "hold" rating in a report on Monday, April 13th. Finally, Weiss Ratings upgraded The RMR Group from a "sell (d+)" rating to a "hold (c-)" rating in a report on Thursday, February 5th. Two research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat, The RMR Group has a consensus rating of "Moderate Buy" and a consensus target price of $19.00.

The RMR Group Stock Up 4.4%

Shares of NASDAQ:RMR opened at $19.50 on Wednesday. The RMR Group Inc. has a 52-week low of $13.48 and a 52-week high of $19.69. The stock has a market cap of $625.17 million, a P/E ratio of 14.13 and a beta of 1.03. The business's 50 day moving average is $16.43 and its 200 day moving average is $15.93.

The RMR Group (NASDAQ:RMR - Get Free Report) last announced its quarterly earnings data on Wednesday, February 4th. The financial services provider reported $0.20 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.18 by $0.02. The RMR Group had a return on equity of 4.03% and a net margin of 3.52%.The company had revenue of $180.42 million for the quarter, compared to analysts' expectations of $214.10 million. On average, sell-side analysts anticipate that The RMR Group Inc. will post 0.76 EPS for the current fiscal year.

The RMR Group Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, May 14th. Investors of record on Tuesday, April 21st will be paid a $0.45 dividend. The ex-dividend date of this dividend is Tuesday, April 21st. This represents a $1.80 annualized dividend and a yield of 9.2%. The RMR Group's dividend payout ratio is 130.43%.

About The RMR Group

The RMR Group, Inc NASDAQ: RMR is a publicly traded asset management company that specializes in providing comprehensive real estate and investment management services to both public and private entities. Acting as an external manager, RMR offers a range of services encompassing property management, asset management, fund administration, accounting, investor relations and compliance oversight. Its client base includes real estate investment trusts (REITs), real estate operating companies (REOCs), closed-end real estate funds and institutional investors.

Founded in 1986, RMR Group has built a business model centered on recurring fee revenue generated through long-term service agreements with its managed entities.

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