Regional Management (NYSE:RM) Shares Cross Below 200 Day Moving Average - Here's Why

Key Points

• Regional Management shares fell below their 200-day moving average of $35.33, trading as low as $34.57 and last at $34.74.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $41.50; three rate the stock Buy and two Hold.
• The company beat quarterly earnings and revenue estimates, reporting $1.61 EPS and $178.78 million in revenue. It also declared a $0.30 quarterly dividend, equivalent to a 3.5% yield.

Regional Management Corp. (NYSE:RM - Get Free Report) shares crossed below its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $35.33 and traded as low as $34.57. Regional Management shares last traded at $34.74, with a volume of 63,837 shares traded.

Wall Street Analyst Weigh In

Several brokerages have commented on RM. Stephens increased their price target on Regional Management from $38.50 to $40.00 and gave the company an "overweight" rating in a report on Thursday, October 29th. Weiss Ratings raised shares of Regional Management from a "hold (c)" rating to a "hold (c+)" rating in a report on Monday, November 2nd. Wall Street Zen raised shares of Regional Management from a "hold" rating to a "buy" rating in a report on Monday, October 12th. Citigroup reiterated a "market outperform" rating on shares of Regional Management in a research note on Thursday, July 30th. Finally, Citizens Jmp dropped their target price on shares of Regional Management from $45.00 to $43.00 and set a "market outperform" rating on the stock in a report on Thursday, July 30th. Three research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $41.50.

Regional Management Stock Performance

The firm's fifty day moving average price is $33.45 and its 200-day moving average price is $35.33. The company has a current ratio of 60.68, a quick ratio of 60.68 and a debt-to-equity ratio of 4.58. The company has a market cap of $310.92 million, a P/E ratio of 7.03 and a beta of 1.08.

Regional Management (NYSE:RM - Get Free Report) last released its earnings results on Wednesday, October 28th. The credit services provider reported $1.61 earnings per share for the quarter, beating the consensus estimate of $1.47 by $0.14. Regional Management had a net margin of 6.96% and a return on equity of 12.61%. The business had revenue of $178.78 million during the quarter, compared to analysts' expectations of $174.69 million.

Regional Management Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, December 16th. Shareholders of record on Wednesday, November 18th will be issued a $0.30 dividend. The ex-dividend date of this dividend is Wednesday, November 18th. This represents a $1.20 annualized dividend and a yield of 3.5%. Regional Management's dividend payout ratio is 24.29%.

Insiders Place Their Bets

In other news, SVP Catherine R. Atwood sold 2,600 shares of the business's stock in a transaction that occurred on Thursday, October 29th. The stock was sold at an average price of $37.39, for a total transaction of $97,214.00. Following the sale, the senior vice president directly owned 52,707 shares in the company, valued at approximately $1,970,714.73. The trade was a 4.70% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, major shareholder Fund L.P. Forager sold 10,401 shares of the company's stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $32.22, for a total value of $335,120.22. Following the completion of the transaction, the insider owned 919,136 shares of the company's stock, valued at $29,614,561.92. The trade was a 1.12% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 35,022 shares of company stock worth $1,160,232. 10.90% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Regional Management

A number of institutional investors have recently bought and sold shares of the business. Ieq Capital LLC bought a new position in shares of Regional Management during the 3rd quarter worth approximately $333,000. Russell Investments Group Ltd. grew its position in Regional Management by 12.2% in the third quarter. Russell Investments Group Ltd. now owns 8,668 shares of the credit services provider's stock valued at $262,000 after acquiring an additional 942 shares during the period. Allspring Global Investments Holdings LLC grew its position in Regional Management by 3.6% in the third quarter. Allspring Global Investments Holdings LLC now owns 12,602 shares of the credit services provider's stock valued at $391,000 after acquiring an additional 435 shares during the period. Prescott Group Capital Management L.L.C. acquired a new position in Regional Management during the third quarter worth $674,000. Finally, State of Alaska Department of Revenue raised its stake in Regional Management by 145.1% during the third quarter. State of Alaska Department of Revenue now owns 5,067 shares of the credit services provider's stock worth $153,000 after acquiring an additional 3,000 shares in the last quarter. Institutional investors and hedge funds own 98.89% of the company's stock.

Regional Management Company Profile

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. Regional Management focuses on serving non-prime borrowers and evaluates applications using information beyond traditional bank lending criteria.

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