Regional Management (NYSE:RM) Share Price Crosses Above 200 Day Moving Average - Here's Why

Key Points

• Regional Management Corp. (NYSE:RM) shares have crossed above their 200-day moving average of $33.40, trading as high as $39.52 recently.
• The company reported earnings of $1.03 per share for the last quarter, surpassing analysts' expectations, alongside announcing a quarterly dividend of $0.30.
• Institutional investors hold 98.89% of Regional Management’s stock, with several hedge funds increasing their stakes significantly in recent months.

Regional Management Corp. (NYSE:RM - Get Free Report) shares passed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $33.40 and traded as high as $39.52. Regional Management shares last traded at $38.73, with a volume of 26,954 shares changing hands.

Wall Street Analyst Weigh In

RM has been the subject of several research reports. Weiss Ratings reissued a "hold (c)" rating on shares of Regional Management in a research note on Saturday, September 27th. Wall Street Zen upgraded shares of Regional Management from a "buy" rating to a "strong-buy" rating in a report on Sunday, August 3rd. One analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Regional Management currently has a consensus rating of "Hold" and a consensus target price of $34.00.

Regional Management Stock Performance

The stock's fifty day simple moving average is $39.81 and its two-hundred day simple moving average is $33.40. The stock has a market capitalization of $379.55 million, a P/E ratio of 11.16 and a beta of 1.17.

Regional Management (NYSE:RM - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The credit services provider reported $1.03 EPS for the quarter, topping analysts' consensus estimates of $0.72 by $0.31. Regional Management had a net margin of 5.68% and a return on equity of 10.91%. The company had revenue of $157.44 million for the quarter, compared to analyst estimates of $155.22 million. As a group, analysts expect that Regional Management Corp. will post 4.7 earnings per share for the current fiscal year.

Regional Management Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 10th. Shareholders of record on Wednesday, August 20th were given a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date was Wednesday, August 20th. Regional Management's payout ratio is 34.58%.

Insider Activity

In other news, CEO Robert William Beck sold 10,000 shares of the firm's stock in a transaction dated Monday, August 11th. The stock was sold at an average price of $35.54, for a total transaction of $355,400.00. Following the completion of the transaction, the chief executive officer directly owned 79,673 shares in the company, valued at $2,831,578.42. This trade represents a 11.15% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 10.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in RM. Forager Capital Management LLC lifted its position in shares of Regional Management by 20.7% in the 2nd quarter. Forager Capital Management LLC now owns 1,085,098 shares of the credit services provider's stock worth $31,696,000 after purchasing an additional 186,072 shares during the period. Acadian Asset Management LLC increased its position in shares of Regional Management by 83.0% during the first quarter. Acadian Asset Management LLC now owns 155,885 shares of the credit services provider's stock worth $4,691,000 after buying an additional 70,721 shares during the period. Goldman Sachs Group Inc. raised its stake in Regional Management by 45.5% during the first quarter. Goldman Sachs Group Inc. now owns 194,374 shares of the credit services provider's stock worth $5,853,000 after buying an additional 60,744 shares during the last quarter. Tieton Capital Management LLC lifted its holdings in Regional Management by 18.6% in the second quarter. Tieton Capital Management LLC now owns 295,081 shares of the credit services provider's stock valued at $8,619,000 after buying an additional 46,380 shares during the period. Finally, Charles Schwab Investment Management Inc. lifted its holdings in Regional Management by 69.2% in the first quarter. Charles Schwab Investment Management Inc. now owns 85,220 shares of the credit services provider's stock valued at $2,566,000 after buying an additional 34,861 shares during the period. Institutional investors own 98.89% of the company's stock.

About Regional Management

Regional Management Corp., a diversified consumer finance company, provides various installment loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other lenders in the United States. It offers small and large installment loans; and retail loans to finance the purchase of furniture, appliances, and other retail products.

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