The RMR Group (NASDAQ:RMR) Reaches New 52-Week High - Should You Buy?

Key Points

• The RMR Group reached a new 52-week high of $18.40 and currently trades near its 50‑day and 200‑day moving averages ($16.37 and $15.88), with a market cap of $591.7M and a P/E of 13.39.
• RMR announced a quarterly dividend of $0.45 (annualized $1.80) representing a 9.8% yield, but the dividend payout ratio is 130.43%, which raises sustainability concerns.
• Analysts have a consensus Moderate Buy with a $19 price target; the company beat EPS expectations ($0.20 vs. $0.18) while revenue missed ($180.42M vs. $214.10M).

The RMR Group Inc. (NASDAQ:RMR - Get Free Report)'s share price reached a new 52-week high during trading on Friday . The stock traded as high as $18.40 and last traded at $18.3040, with a volume of 43029 shares traded. The stock had previously closed at $17.81.

Analyst Ratings Changes

RMR has been the topic of several recent research reports. LADENBURG THALM/SH SH initiated coverage on The RMR Group in a report on Wednesday, January 7th. They set a "buy" rating and a $17.00 target price on the stock. B. Riley Financial cut their target price on The RMR Group from $24.00 to $21.00 and set a "buy" rating on the stock in a report on Tuesday, March 17th. Weiss Ratings raised The RMR Group from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Thursday, February 5th. Finally, Zacks Research raised The RMR Group from a "strong sell" rating to a "hold" rating in a research note on Monday, April 13th. Two research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $19.00.

The RMR Group Stock Performance

The stock has a 50 day moving average of $16.37 and a two-hundred day moving average of $15.88. The firm has a market capitalization of $591.70 million, a P/E ratio of 13.39 and a beta of 0.93.

The RMR Group (NASDAQ:RMR - Get Free Report) last issued its quarterly earnings data on Wednesday, February 4th. The financial services provider reported $0.20 earnings per share for the quarter, beating analysts' consensus estimates of $0.18 by $0.02. The RMR Group had a return on equity of 4.03% and a net margin of 3.52%.The business had revenue of $180.42 million for the quarter, compared to the consensus estimate of $214.10 million. Sell-side analysts predict that The RMR Group Inc. will post 0.76 EPS for the current year.

The RMR Group Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, May 14th. Shareholders of record on Tuesday, April 21st will be issued a $0.45 dividend. The ex-dividend date of this dividend is Tuesday, April 21st. This represents a $1.80 dividend on an annualized basis and a yield of 9.8%. The RMR Group's dividend payout ratio (DPR) is 130.43%.

Institutional Trading of The RMR Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. NewEdge Advisors LLC grew its holdings in The RMR Group by 313.1% in the 1st quarter. NewEdge Advisors LLC now owns 1,483 shares of the financial services provider's stock valued at $25,000 after buying an additional 1,124 shares during the last quarter. New York State Common Retirement Fund grew its holdings in The RMR Group by 538.5% in the 3rd quarter. New York State Common Retirement Fund now owns 1,660 shares of the financial services provider's stock valued at $26,000 after buying an additional 1,400 shares during the last quarter. Quarry LP acquired a new stake in The RMR Group in the 3rd quarter valued at approximately $36,000. State of Alaska Department of Revenue acquired a new stake in The RMR Group in the 4th quarter valued at approximately $41,000. Finally, Tower Research Capital LLC TRC grew its holdings in The RMR Group by 442.4% in the 2nd quarter. Tower Research Capital LLC TRC now owns 3,081 shares of the financial services provider's stock valued at $50,000 after buying an additional 2,513 shares during the last quarter. Institutional investors and hedge funds own 42.31% of the company's stock.

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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