FirstCash (NASDAQ:FCFS) Shares Down 4.9% - Time to Sell?

Key Points

• Shares fell 4.9% to about $182.26 intraday on Tuesday with trading volume down ~87% versus the average session, after a prior close of $191.57.
• Analyst views are mixed but leaning positive: MarketBeat shows a consensus rating of "Moderate Buy" with a consensus price target of $183.25, while Canaccord recently raised its target to $240 and some firms have trimmed ratings to Hold.
• FirstCash reported a solid quarter (EPS $2.64 vs. $2.54 est., revenue $1.06B, +19.8% y/y) and pays a $0.42 quarterly dividend (0.9% yield), though insiders have recently sold shares (26,500 sold in the last 90 days).

FirstCash Holdings, Inc. (NASDAQ:FCFS - Get Free Report)'s stock price fell 4.9% on Tuesday . The stock traded as low as $183.34 and last traded at $182.2640. 36,972 shares changed hands during mid-day trading, a decline of 87% from the average session volume of 290,166 shares. The stock had previously closed at $191.57.

Analysts Set New Price Targets

Several analysts have issued reports on the stock. Canaccord Genuity Group upped their price target on shares of FirstCash from $217.00 to $240.00 and gave the stock a "buy" rating in a research report on Friday, March 20th. Weiss Ratings restated a "buy (b)" rating on shares of FirstCash in a research note on Friday. Wall Street Zen cut shares of FirstCash from a "strong-buy" rating to a "buy" rating in a report on Sunday, February 15th. Finally, Zacks Research downgraded shares of FirstCash from a "strong-buy" rating to a "hold" rating in a research note on Friday, January 2nd. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $183.25.

FirstCash Price Performance

The company has a market capitalization of $8.20 billion, a P/E ratio of 25.07 and a beta of 0.46. The company has a debt-to-equity ratio of 0.97, a current ratio of 4.55 and a quick ratio of 3.36. The company's 50-day moving average price is $183.97 and its two-hundred day moving average price is $166.92.

FirstCash (NASDAQ:FCFS - Get Free Report) last announced its quarterly earnings results on Thursday, February 5th. The company reported $2.64 EPS for the quarter, beating analysts' consensus estimates of $2.54 by $0.10. FirstCash had a net margin of 9.02% and a return on equity of 17.99%. The business had revenue of $1.06 billion for the quarter, compared to analyst estimates of $1.01 billion. During the same quarter in the prior year, the business earned $2.12 EPS. FirstCash's quarterly revenue was up 19.8% on a year-over-year basis. As a group, sell-side analysts expect that FirstCash Holdings, Inc. will post 7.7 EPS for the current year.

FirstCash Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, February 27th. Shareholders of record on Wednesday, February 18th were issued a $0.42 dividend. This represents a $1.68 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend was Wednesday, February 18th. FirstCash's dividend payout ratio is currently 22.64%.

Insider Transactions at FirstCash

In related news, COO Thomas Brent Stuart sold 10,000 shares of the firm's stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $182.53, for a total transaction 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 ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Howard F. Hambleton sold 4,000 shares of FirstCash stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $185.12, for a total transaction of $740,480.00. Following the completion of the sale, the insider owned 35,406 shares of the company's stock, valued at $6,554,358.72. This trade represents a 10.15% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 26,500 shares of company stock valued at $4,783,985. 14.77% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the business. Root Financial Partners LLC acquired a new stake in FirstCash during the third quarter worth approximately $25,000. Rothschild Investment LLC grew its holdings in shares of FirstCash by 127.8% during the 3rd quarter. Rothschild Investment LLC now owns 180 shares of the company's stock worth $29,000 after purchasing an additional 101 shares in the last quarter. CIBC Private Wealth Group LLC increased its position in shares of FirstCash by 490.9% in the fourth quarter. CIBC Private Wealth Group LLC now owns 195 shares of the company's stock worth $31,000 after purchasing an additional 162 shares during the period. Community Bank N.A. acquired a new position in FirstCash in the third quarter valued at about $32,000. Finally, High Point Wealth Management LLC bought a new stake in FirstCash during the fourth quarter worth about $33,000. 80.30% of the stock is owned by institutional investors.

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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