FirstCash (NASDAQ:FCFS) Downgraded by Zacks Research to "Hold"

Key Points

• Zacks Research downgraded FirstCash from “strong-buy” to “hold,” adding to a mixed but still broadly positive analyst picture. The stock now carries a consensus rating of “Moderate Buy” with an average price target of $198.00.
• FirstCash reported stronger-than-expected quarterly results, posting EPS of $2.69 versus the $2.30 estimate and revenue of $1.05 billion, up 25.7% from a year earlier. The company also showed solid profitability with a 9.15% net margin and 18.68% return on equity.
• Shares were down 1.9% around the time of the report, opening at $219.17, near the stock’s 50-day moving average of $220.76. Insider selling was also notable, including a June 5 sale by SVP Raul Ramos, while institutional ownership remains high at 80.30%.

FirstCash (NASDAQ:FCFS - Get Free Report) was downgraded by Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued to investors on Tuesday,Zacks.com reports.

Other equities analysts have also recently issued research reports about the stock. Weiss Ratings cut shares of FirstCash from a "buy (a-)" rating to a "buy (b+)" rating in a research note on Monday, April 27th. TD Cowen increased their target price on shares of FirstCash from $205.00 to $235.00 and gave the company a "buy" rating in a research note on Friday, April 24th. Canaccord Genuity Group raised their target price on shares of FirstCash from $242.00 to $252.00 and gave the stock a "buy" rating in a report on Friday, April 24th. Finally, Wall Street Zen cut FirstCash from a "strong-buy" rating to a "buy" rating in a report on Sunday, May 10th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, FirstCash presently has a consensus rating of "Moderate Buy" and an average price target of $198.00.

FirstCash Trading Down 1.9%

Shares of FCFS stock opened at $219.17 on Tuesday. The stock has a 50-day simple moving average of $220.76 and a 200 day simple moving average of $193.00. The stock has a market capitalization of $9.61 billion, a P/E ratio of 27.47 and a beta of 0.52. FirstCash has a fifty-two week low of $119.21 and a fifty-two week high of $235.97. The company has a quick ratio of 3.42, a current ratio of 4.77 and a debt-to-equity ratio of 0.98.

FirstCash (NASDAQ:FCFS - Get Free Report) last issued its quarterly earnings results on Thursday, April 23rd. The company reported $2.69 EPS for the quarter, topping the consensus estimate of $2.30 by $0.39. FirstCash had a net margin of 9.15% and a return on equity of 18.68%. The firm had revenue of $1.05 billion for the quarter, compared to analysts' expectations of $1 billion. During the same period in the previous year, the business earned $2.07 earnings per share. FirstCash's revenue for the quarter was up 25.7% compared to the same quarter last year. On average, sell-side analysts expect that FirstCash will post 11.3 earnings per share for the current fiscal year.

Insider Activity at FirstCash

In other news, SVP Raul Ramos sold 6,835 shares of the business's stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $225.23, for a total transaction of $1,539,447.05. Following the sale, the senior vice president owned 20,400 shares in the company, valued at $4,594,692. The trade was a 25.10% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Howard F. Hambleton sold 3,000 shares of the company's stock in a transaction that occurred on Tuesday, May 19th. The shares were sold at an average price of $226.41, for a total transaction of $679,230.00. Following the completion of the sale, the insider 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 position. 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 27,500 shares of company stock valued at $6,243,104. Corporate insiders own 2.86% of the company's stock.

Institutional Trading of FirstCash

Several large investors have recently added to or reduced their stakes in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in shares of FirstCash by 4.7% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 22,946 shares of the company's stock worth $2,761,000 after buying an additional 1,021 shares during the period. Goldman Sachs Group Inc. lifted its stake in FirstCash by 9.7% in the 1st quarter. Goldman Sachs Group Inc. now owns 389,509 shares of the company's stock worth $46,866,000 after acquiring an additional 34,364 shares in the last quarter. Jane Street Group LLC boosted its position in FirstCash by 237.2% during the 1st quarter. Jane Street Group LLC now owns 62,057 shares of the company's stock worth $7,467,000 after acquiring an additional 43,653 shares during the period. American Century Companies Inc. grew its stake in FirstCash by 4.9% during the 2nd quarter. American Century Companies Inc. now owns 14,187 shares of the company's stock valued at $1,917,000 after acquiring an additional 666 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership increased its holdings in shares of FirstCash by 67.4% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 20,872 shares of the company's stock valued at $2,821,000 after purchasing an additional 8,402 shares during the period. 80.30% of the stock is owned by institutional investors and hedge funds.

About FirstCash

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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