The RMR Group (NASDAQ:RMR) Share Price Breaks Below Fifty Day Moving Average - Should You Sell?

Key Points

• The RMR Group shares fell below their 50-day moving average, trading as low as $18.02 versus the $19.36 average, with the latest price near $18.08.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $19.00, despite Weiss Ratings downgrading the stock to “hold.”
• The company offers a high annualized dividend of $1.80 per share, yielding about 10%, but its 157.89% payout ratio exceeds earnings and may signal dividend sustainability risk.

The RMR Group Inc. (NASDAQ:RMR - Get Free Report) shares passed below its 50-day moving average during trading on Wednesday. The stock has a 50-day moving average of $19.36 and traded as low as $18.02. The RMR Group shares last traded at $18.08, with a volume of 148,502 shares changing hands.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings cut shares of The RMR Group from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, September 1st. Two equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, The RMR Group currently has an average rating of "Moderate Buy" and an average price target of $19.00.

The RMR Group Stock Performance

The stock has a market capitalization of $580.01 million, a P/E ratio of 15.86 and a beta of 1.02. The company has a debt-to-equity ratio of 0.06, a quick ratio of 0.24 and a current ratio of 0.24. The company's fifty day simple moving average is $19.36 and its two-hundred day simple moving average is $18.94.

The RMR Group (NASDAQ:RMR - Get Free Report) last posted its earnings results on Wednesday, August 5th. The financial services provider reported $0.15 EPS for the quarter, missing the consensus estimate of $0.16 by ($0.01). The RMR Group had a net margin of 3.10% and a return on equity of 2.96%. The firm had revenue of $153.51 million during the quarter, compared to analyst estimates of $147.60 million. As a group, equities analysts forecast that The RMR Group Inc. will post 0.63 EPS for the current year.

The RMR Group Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, August 13th. Stockholders of record on Monday, July 20th were given a $0.45 dividend. This represents a $1.80 dividend on an annualized basis and a dividend yield of 10.0%. The ex-dividend date of this dividend was Monday, July 20th. The RMR Group's payout ratio is presently 157.89%.

Hedge Funds Weigh In On The RMR Group

Hedge funds have recently bought and sold shares of the business. NewEdge Advisors LLC raised its position in shares of The RMR Group by 139,802.2% in the second quarter. NewEdge Advisors LLC now owns 64,355 shares of the financial services provider's stock valued at $1,321,000 after buying an additional 64,309 shares in the last quarter. Triumph Capital Management boosted its stake in shares of The RMR Group by 117.7% in the second quarter. Triumph Capital Management now owns 3,052 shares of the financial services provider's stock valued at $63,000 after buying an additional 1,650 shares during the period. Globeflex Capital L P acquired a new stake in The RMR Group during the second quarter worth approximately $852,000. Bank of America Corp DE grew its position in The RMR Group by 76.1% during the first quarter. Bank of America Corp DE now owns 941,252 shares of the financial services provider's stock worth $14,561,000 after buying an additional 406,888 shares in the last quarter. Finally, Quantinno Capital Management LP increased its stake in The RMR Group by 16.3% during the 1st quarter. Quantinno Capital Management LP now owns 66,829 shares of the financial services provider's stock worth $1,034,000 after acquiring an additional 9,347 shares during the period. 42.31% of the stock is owned by institutional investors.

About The RMR Group

The RMR Group Inc is an alternative asset management and property management company based in Newton, Massachusetts. It provides management services to real estate investment trusts (REITs), real estate operating companies and private investment vehicles, with a focus on improving the performance and value of the properties and businesses it oversees.

The company's services include asset management, property management, leasing, acquisition and disposition support, development and redevelopment, accounting, finance, human resources and other corporate functions.

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