The RMR Group (NASDAQ:RMR) Share Price Crosses Below 50-Day Moving Average - Here's Why

Key Points

• The RMR Group shares fell below their 50-day moving average, trading as low as $19.13 versus the $19.97 average, with the latest price near $19.22.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $19.00 price target; Weiss Ratings also upgraded its assessment from “hold (c)” to “hold (c+).”
• The company reported quarterly revenue above expectations but missed EPS estimates slightly, while maintaining an attractive 9.4% annualized dividend yield based on its $0.45 quarterly payout.

The RMR Group Inc. (NASDAQ:RMR - Get Free Report) shares passed below its 50-day moving average during trading on Tuesday . The stock has a 50-day moving average of $19.97 and traded as low as $19.13. The RMR Group shares last traded at $19.22, with a volume of 82,238 shares changing hands.

Analysts Set New Price Targets

Separately, Weiss Ratings upgraded shares of The RMR Group from a "hold (c)" rating to a "hold (c+)" rating in a research note on Wednesday, August 12th. Two investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $19.00.

The RMR Group Price Performance

The company has a 50-day simple moving average of $19.97 and a 200-day simple moving average of $18.61. The stock has a market cap of $616.58 million, a PE ratio of 16.86 and a beta of 1.02. The company has a debt-to-equity ratio of 0.06, a current ratio of 0.24 and a quick ratio of 0.24.

The RMR Group (NASDAQ:RMR - Get Free Report) last issued 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 return on equity of 2.96% and a net margin of 3.10%.The company had revenue of $153.51 million for the quarter, compared to analysts' expectations of $147.60 million. Sell-side analysts anticipate that The RMR Group Inc. will post 0.63 EPS for the current fiscal year.

The RMR Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, August 13th. Investors of record on Monday, July 20th were issued a dividend of $0.45 per share. The ex-dividend date of this dividend was Monday, July 20th. This represents a $1.80 dividend on an annualized basis and a yield of 9.4%. The RMR Group's payout ratio is currently 157.89%.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in RMR. NewEdge Advisors LLC boosted its stake in shares of The RMR Group by 313.1% during the 1st quarter. NewEdge Advisors LLC now owns 1,483 shares of the financial services provider's stock worth $25,000 after acquiring an additional 1,124 shares in the last quarter. Alliancebernstein L.P. increased its stake in The RMR Group by 7.1% in the 3rd quarter. Alliancebernstein L.P. now owns 21,097 shares of the financial services provider's stock valued at $332,000 after purchasing an additional 1,400 shares in the last quarter. Qube Research & Technologies Ltd increased its stake in The RMR Group by 2.7% in the 2nd quarter. Qube Research & Technologies Ltd now owns 61,809 shares of the financial services provider's stock valued at $1,011,000 after purchasing an additional 1,641 shares in the last quarter. Triumph Capital Management raised its holdings in The RMR Group by 117.7% during the second quarter. Triumph Capital Management now owns 3,052 shares of the financial services provider's stock worth $63,000 after purchasing an additional 1,650 shares during the last quarter. Finally, BNP Paribas Financial Markets raised its holdings in The RMR Group by 120.9% during the third quarter. BNP Paribas Financial Markets now owns 3,393 shares of the financial services provider's stock worth $53,000 after purchasing an additional 1,857 shares during the last quarter. 42.31% of the stock is owned by hedge funds and other institutional investors.

The RMR Group Company Profile

The RMR Group, Inc NASDAQ: RMR is a publicly traded asset management company that specializes in providing comprehensive real estate and investment management services to both public and private entities. Acting as an external manager, RMR offers a range of services encompassing property management, asset management, fund administration, accounting, investor relations and compliance oversight. Its client base includes real estate investment trusts (REITs), real estate operating companies (REOCs), closed-end real estate funds and institutional investors.

Founded in 1986, RMR Group has built a business model centered on recurring fee revenue generated through long-term service agreements with its managed entities.

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