Regional Management (NYSE:RM) Shares Break Above 200 Day Moving Average - Here's What Happened

Key Points

• Regional Management shares broke above their 200-day moving average, reaching $38.50 before last trading near $36.50, compared with a 200-day average of $35.35.
• The company’s third-quarter results exceeded expectations, with EPS of $1.61 versus $1.47 expected and record revenue of $178.8 million. Net finance receivables rose 7.6% year over year, supporting projected 2026 portfolio growth of 5% to 7%.
• Despite the earnings beat and a declared $0.30 quarterly dividend, credit risks increased: provisions for losses rose 9.4% and the net credit loss rate climbed to 10.9%. Analysts maintain a “Moderate Buy” consensus with an average price target of $41.50.

Regional Management Corp. (NYSE:RM - Get Free Report)'s share price passed above its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $35.35 and traded as high as $38.50. Regional Management shares last traded at $36.4970, with a volume of 178,321 shares.

Key Stories Impacting Regional Management

Here are the key news stories impacting Regional Management this week:

• Positive Sentiment: Third-quarter diluted EPS was $1.61, exceeding the analyst consensus of $1.47, while revenue increased 8.0% year over year to a record $178.8 million, above estimates of $174.69 million. Net income rose 5.3% to $15.1 million. Regional Management third-quarter earnings results
• Positive Sentiment: Net finance receivables grew 7.6% year over year to approximately $2.2 billion, supporting management’s outlook for 5% to 7% portfolio growth in 2026 and a longer-term target of returning on equity above 18%. Regional Management growth and ROE outlook
• Positive Sentiment: Regional Management declared a quarterly cash dividend of $0.30 per share, equivalent to $1.20 annually and a yield of roughly 3.6% based on the provided stock data. The dividend is payable December 16 to shareholders of record November 18. Regional Management quarterly dividend announcement
• Neutral Sentiment: The company also announced leadership changes during the quarterly update. Investors will likely monitor whether the transition affects execution of the growth and profitability targets. Regional Management Q3 results and leadership changes
• Negative Sentiment: Provision for credit losses increased 9.4% year over year to $66.2 million, and the net credit loss rate rose to 10.9% from 10.2%. Rising losses remain a risk for margins and future earnings, despite the quarterly beat. Regional Management record revenue and credit losses

Wall Street Analyst Weigh In

RM has been the topic of several analyst reports. Weiss Ratings downgraded shares of Regional Management from a "hold (c+)" rating to a "hold (c)" rating in a report on Thursday, October 8th. Citigroup restated a "market outperform" rating on shares of Regional Management in a report on Thursday, July 30th. Stephens increased their price objective on Regional Management from $38.50 to $40.00 and gave the company an "overweight" rating in a report on Thursday. Citizens Jmp lowered their target price on Regional Management from $45.00 to $43.00 and set a "market outperform" rating on the stock in a research note on Thursday, July 30th. Finally, Wall Street Zen raised shares of Regional Management from a "hold" rating to a "buy" rating in a research note on Monday, October 12th. Three research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $41.50.

Regional Management Stock Performance

The stock has a market capitalization of $336.87 million, a PE ratio of 7.39 and a beta of 1.02. The company has a debt-to-equity ratio of 4.41, a current ratio of 64.04 and a quick ratio of 64.04. The stock has a 50 day moving average of $32.79 and a two-hundred day moving average of $35.35.

Regional Management (NYSE:RM - Get Free Report) last posted its quarterly earnings data on Wednesday, October 28th. The credit services provider reported $1.61 EPS for the quarter, topping analysts' consensus estimates of $1.47 by $0.14. Regional Management had a return on equity of 12.66% and a net margin of 6.96%. The firm had revenue of $178.78 million during the quarter, compared to analysts' expectations of $174.69 million.

Regional Management Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, December 16th. Investors of record on Wednesday, November 18th will be paid a $0.30 dividend. The ex-dividend date is Wednesday, November 18th. This represents a $1.20 annualized dividend and a dividend yield of 3.3%. Regional Management's payout ratio is 25.26%.

Insider Activity

In related news, CEO Lakhbir Lamba bought 3,500 shares of the firm's stock in a transaction on Wednesday, August 12th. The stock was bought at an average cost of $31.76 per share, for a total transaction of $111,160.00. Following the completion of the purchase, the chief executive officer directly owned 55,734 shares in the company, valued at approximately $1,770,111.84. The trade was a 6.70% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, major shareholder Fund L.P. Forager sold 10,401 shares of the business's stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $32.22, for a total value of $335,120.22. Following the transaction, the insider owned 919,136 shares of the company's stock, valued at $29,614,561.92. This trade represents a 1.12% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 29,722 shares of company stock valued at $958,879. 10.90% of the stock is owned by corporate insiders.

Institutional Trading of Regional Management

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Janney Montgomery Scott LLC grew its stake in Regional Management by 2.8% during the first quarter. Janney Montgomery Scott LLC now owns 17,464 shares of the credit services provider's stock worth $563,000 after buying an additional 473 shares during the last quarter. GAMMA Investing LLC raised its position in Regional Management by 183.8% in the 3rd quarter. GAMMA Investing LLC now owns 931 shares of the credit services provider's stock valued at $28,000 after buying an additional 603 shares during the last quarter. Legal & General Group Plc acquired a new position in shares of Regional Management during the 2nd quarter worth about $33,000. Versant Capital Management Inc lifted its stake in Regional Management by 140.7% in the third quarter. Versant Capital Management Inc now owns 1,663 shares of the credit services provider's stock valued at $50,000 after acquiring an additional 972 shares during the last quarter. Finally, Allspring Global Investments Holdings LLC increased its holdings in shares of Regional Management by 10.2% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 11,810 shares of the credit services provider's stock worth $385,000 after acquiring an additional 1,092 shares during the last quarter. Institutional investors and hedge funds own 98.89% of the company's stock.

About Regional Management

Regional Management Corp. NYSE: RM is a consumer finance company that provides credit products to individuals who may have limited access to traditional bank financing. The company primarily offers small and medium-sized installment loans, including secured and unsecured personal loans, through a network of local branches and digital channels.

Its services may also include optional credit-related products, such as insurance and other ancillary offerings associated with consumer lending.

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