FirstCash (NASDAQ:FCFS) Sets New 12-Month High After Better-Than-Expected Earnings

Key Points

• FirstCash shares hit a new 52-week high after reporting $2.69 EPS (vs. $2.30 expected) and $1.05 billion in quarterly revenue, a 25.7% year-over-year increase.
• The company paid a quarterly dividend of $0.42 ($1.68 annualized) for a yield of 0.8% and a payout ratio of 22.64%.
• Analysts remain generally positive—Canaccord raised its target to $240 with a "buy" rating, and MarketBeat shows an average rating of "Buy" with an average target price of $183.25.

FirstCash Holdings, Inc. (NASDAQ:FCFS - Get Free Report) shares hit a new 52-week high during mid-day trading on Friday following a better than expected earnings announcement. The company traded as high as $227.26 and last traded at $212.33, with a volume of 518695 shares trading hands. The stock had previously closed at $205.63.

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 9.02% and a return on equity of 17.99%. The firm had revenue of $1.05 billion during the quarter, compared to analysts' expectations of $1 billion. During the same period last year, the company posted $2.07 EPS. The company's quarterly revenue was up 25.7% compared to the same quarter last year.

FirstCash Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, February 27th. Shareholders of record on Wednesday, February 18th were given a dividend of $0.42 per share. This represents a $1.68 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend was Wednesday, February 18th. FirstCash's payout ratio is presently 22.64%.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on FCFS. Canaccord Genuity Group increased their target price on FirstCash from $217.00 to $240.00 and gave the stock a "buy" rating in a research report on Friday, March 20th. Weiss Ratings upgraded FirstCash from a "buy (b)" rating to a "buy (a-)" rating in a research report on Friday, April 10th. Wall Street Zen cut FirstCash from a "strong-buy" rating to a "buy" rating in a research note on Sunday, February 15th. Finally, Zacks Research downgraded FirstCash from a "strong-buy" rating to a "hold" rating in a report on Friday, January 2nd. Two analysts have rated the stock with a Strong Buy rating, two have given a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Buy" and an average target price of $183.25.

Insider Buying and Selling at FirstCash

In related news, CFO R Douglas Orr sold 4,000 shares of the company's stock in a transaction that occurred on Thursday, February 5th. The stock was sold at an average price of $175.37, for a total value of $701,480.00. Following the sale, the chief financial officer owned 111,289 shares in the company, valued at $19,516,751.93. This represents a 3.47% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, COO Thomas Brent Stuart sold 10,000 shares of the firm's stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $182.53, for a total value of $1,825,300.00. Following the transaction, the chief operating officer directly owned 150,846 shares of the company's stock, valued at approximately $27,533,920.38. This trade represents a 6.22% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 26,500 shares of company stock valued at $4,783,985. Corporate insiders own 2.93% of the company's stock.

Institutional Investors Weigh In On FirstCash

Several hedge funds have recently added to or reduced their stakes in FCFS. Vanguard Group Inc. increased its holdings in shares of FirstCash by 2.1% during the third quarter. Vanguard Group Inc. now owns 4,096,956 shares of the company's stock valued at $649,040,000 after acquiring an additional 83,113 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its stake in FirstCash by 36.4% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 1,169,281 shares of the company's stock worth $186,361,000 after purchasing an additional 312,132 shares in the last quarter. Geode Capital Management LLC boosted its stake in FirstCash by 3.1% in the 4th quarter. Geode Capital Management LLC now owns 1,043,699 shares of the company's stock worth $166,367,000 after purchasing an additional 31,550 shares in the last quarter. Dimensional Fund Advisors LP grew its position in FirstCash by 0.6% during the 4th quarter. Dimensional Fund Advisors LP now owns 1,009,170 shares of the company's stock valued at $160,850,000 after purchasing an additional 5,626 shares during the last quarter. Finally, Stephens Investment Management Group LLC grew its position in FirstCash by 1.0% during the 3rd quarter. Stephens Investment Management Group LLC now owns 857,510 shares of the company's stock valued at $135,847,000 after purchasing an additional 8,610 shares during the last quarter. 80.30% of the stock is owned by institutional investors.

FirstCash Stock Performance

The company has a current ratio of 4.55, a quick ratio of 3.36 and a debt-to-equity ratio of 0.97. The firm has a market capitalization of $9.31 billion, a P/E ratio of 28.62 and a beta of 0.47. The business's 50 day simple moving average is $193.73 and its two-hundred day simple moving average is $173.04.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.