The RMR Group (NASDAQ:RMR) Shares Climb 5.4% on Strong Earnings

Key Points

• RMR shares rose 5.4% after quarterly earnings beat expectations: EPS was $0.21 versus $0.17 forecast, while revenue reached $163.64 million against estimates of $154.10 million.
• The company declared a quarterly dividend of $0.45 per share, equivalent to an annualized yield of 10.9%; its payout ratio is 157.89%.
• Analysts give RMR a consensus “Moderate Buy” rating with a $21.33 average price target; three rate it Buy and two Hold.

The RMR Group Inc. (NASDAQ:RMR - Get Free Report)'s stock price shot up 5.4% during trading on Friday following a better than expected earnings announcement. The company traded as high as $16.50 and last traded at $16.5550. 26,117 shares were traded during mid-day trading, a decline of 83% from the average daily volume of 156,930 shares. The stock had previously closed at $15.71.

The financial services provider reported $0.21 EPS for the quarter, beating the consensus estimate of $0.17 by $0.04. The business had revenue of $163.64 million for the quarter, compared to analysts' expectations of $154.10 million. The RMR Group had a net margin of 3.10% and a return on equity of 2.96%.

The RMR Group Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, November 12th. Investors of record on Monday, October 19th were issued a dividend of $0.45 per share. This represents a $1.80 annualized dividend and a yield of 10.9%. The ex-dividend date of this dividend was Monday, October 19th. The RMR Group's dividend payout ratio (DPR) is presently 157.89%.

Analyst Ratings Changes

RMR has been the subject of a number of analyst reports. Maxim Group initiated coverage on shares of The RMR Group in a report on Friday, October 9th. They issued a "buy" rating and a $26.00 target price on the stock. Weiss Ratings cut The RMR Group from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, September 1st. Three analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, The RMR Group currently has a consensus rating of "Moderate Buy" and a consensus target price of $21.33.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in RMR. First Trust Advisors LP lifted its position in The RMR Group by 705.1% during the third quarter. First Trust Advisors LP now owns 81,896 shares of the financial services provider's stock valued at $1,481,000 after acquiring an additional 71,724 shares during the last quarter. R Squared Ltd purchased a new position in The RMR Group in the 3rd quarter valued at $211,000. Kestra Private Wealth Services LLC grew its position in shares of The RMR Group by 20.9% in the third quarter. Kestra Private Wealth Services LLC now owns 23,266 shares of the financial services provider's stock valued at $421,000 after purchasing an additional 4,028 shares in the last quarter. Aviance Capital Partners LLC increased its holdings in shares of The RMR Group by 3.1% during the 3rd quarter. Aviance Capital Partners LLC now owns 92,128 shares of the financial services provider's stock worth $1,666,000 after buying an additional 2,788 shares during the last quarter. Finally, State of Wyoming increased its position in shares of The RMR Group by 22.5% during the third quarter. State of Wyoming now owns 14,131 shares of the financial services provider's stock valued at $255,000 after acquiring an additional 2,591 shares during the last quarter. Hedge funds and other institutional investors own 42.31% of the company's stock.

The RMR Group Stock Performance

The firm has a 50-day simple moving average of $17.87 and a two-hundred day simple moving average of $18.28. 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 has a market capitalization of $530.51 million, a price-to-earnings ratio of 14.47 and a beta of 1.01.

The RMR Group Company Profile

The RMR Group Inc. is a U.S.-based alternative asset management company that provides management services to real estate and related businesses. Its clients include publicly traded real estate investment trusts, real estate operating companies and private capital vehicles. RMR's services include property and business management, asset management, leasing, acquisitions and dispositions, financing, development and advisory support. The businesses it manages operate across a range of real estate sectors, including senior living, healthcare, office, industrial and retail.

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