FirstCash (NASDAQ:FCFS) Shares Gap Up Following Better-Than-Expected Earnings

Key Points

• FirstCash beat expectations with Q EPS of $2.69 versus $2.30 expected and revenue up 25.7% year-over-year, sending the stock sharply higher (opened $215.76 from $205.63 and last traded $222.40, up ~9.4%).
• The company declared and paid a quarterly dividend of $0.42 (annualized $1.68), representing a yield of 0.7% and a dividend payout ratio of 22.64%.
• Insiders have been selling: executives sold 26,500 shares (~$4.78M) in the last 90 days (including the CFO and COO), and insiders now own 2.93% of the stock.

Shares of FirstCash Holdings, Inc. (NASDAQ:FCFS - Get Free Report) gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $205.63, but opened at $215.76. FirstCash shares last traded at $222.40, with a volume of 26,200 shares trading hands.

The company reported $2.69 earnings per share for the quarter, beating analysts' consensus estimates of $2.30 by $0.39. FirstCash had a net margin of 9.02% and a return on equity of 17.99%. The company's revenue was up 25.7% compared to the same quarter last year. During the same period in the prior year, the company earned $2.07 earnings per share.

FirstCash Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, February 27th. Shareholders of record on Wednesday, February 18th were paid a $0.42 dividend. This represents a $1.68 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date was Wednesday, February 18th. FirstCash's dividend payout ratio (DPR) is currently 22.64%.

Analysts Set New Price Targets

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

Insider Buying and Selling

In related news, CFO R Douglas Orr sold 2,000 shares of the business's stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $182.99, for a total value of $365,980.00. Following the completion of the sale, the chief financial officer directly owned 36,734 shares in the company, valued at $6,721,954.66. The trade was a 5.16% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, COO Thomas Brent Stuart sold 10,000 shares of the company's stock in a transaction 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 completion of the transaction, the chief operating officer directly owned 150,846 shares in the company, valued at approximately $27,533,920.38. This represents a 6.22% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 26,500 shares of company stock valued at $4,783,985. Insiders own 2.93% of the company's stock.

Institutional Investors Weigh In On FirstCash

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

FirstCash Trading Up 9.4%

The business's 50 day simple moving average is $193.13 and its two-hundred day simple moving average is $172.76. The stock has a market cap of $9.86 billion, a P/E ratio of 30.07 and a beta of 0.47. The company has a quick ratio of 3.36, a current ratio of 4.55 and a debt-to-equity ratio of 0.97.

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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