The RMR Group (NASDAQ:RMR) Shares Pass Below 50-Day Moving Average - What's Next?

Key Points

• The RMR Group shares fell below their 50-day moving average
• Analyst sentiment is mixed but tilted positive with a consensus of "Moderate Buy" and an average price target of $20.50 (1 Strong Buy, 1 Buy, 2 Holds).
• The company pays a quarterly dividend of $0.45 (annualized $1.80) for a 11.1% yield130.43%; latest quarter showed EPS of $0.20 (beat) while revenue of $180.42M missed estimates of $214.10M.

The RMR Group Inc. (NASDAQ:RMR - Get Free Report) shares crossed below its 50-day moving average during trading on Thursday . The stock has a 50-day moving average of $16.38 and traded as low as $16.25. The RMR Group shares last traded at $16.28, with a volume of 55,387 shares.

Analyst Ratings Changes

A number of brokerages recently weighed in on RMR. Zacks Research raised The RMR Group from a "strong sell" rating to a "hold" rating in a report on Monday, January 19th. LADENBURG THALM/SH SH assumed coverage on The RMR Group in a research note on Wednesday, January 7th. They issued a "buy" rating and a $17.00 target price for the company. Wall Street Zen upgraded shares of The RMR Group from a "sell" rating to a "hold" rating in a research report on Monday, December 22nd. Finally, Weiss Ratings raised shares of The RMR Group from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Thursday, February 5th. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, The RMR Group has a consensus rating of "Moderate Buy" and an average price target of $20.50.

The RMR Group Stock Performance

The stock has a market capitalization of $521.94 million, a P/E ratio of 11.80 and a beta of 0.93. The stock has a 50-day moving average price of $16.38 and a two-hundred day moving average price of $15.88.

The RMR Group (NASDAQ:RMR - Get Free Report) last announced its earnings results on Wednesday, February 4th. The financial services provider reported $0.20 EPS 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 company had revenue of $180.42 million during the quarter, compared to the consensus estimate of $214.10 million. Equities analysts anticipate that The RMR Group Inc. will post 1.51 earnings per share for the current fiscal year.

The RMR Group Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, February 19th. Stockholders of record on Monday, January 26th were paid a dividend of $0.45 per share. The ex-dividend date of this dividend was Monday, January 26th. This represents a $1.80 dividend on an annualized basis and a dividend yield of 11.1%. The RMR Group's payout ratio is presently 130.43%.

Hedge Funds Weigh In On The RMR Group

A number of institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. boosted its position in The RMR Group by 0.4% during the 3rd quarter. Vanguard Group Inc. now owns 1,616,140 shares of the financial services provider's stock valued at $25,422,000 after acquiring an additional 6,439 shares in the last quarter. Nantahala Capital Management LLC raised its position in shares of The RMR Group by 55.9% in the 2nd quarter. Nantahala Capital Management LLC now owns 1,147,902 shares of the financial services provider's stock worth $18,768,000 after acquiring an additional 411,700 shares in the last quarter. Federated Hermes Inc. lifted its stake in shares of The RMR Group by 12.1% in the 4th quarter. Federated Hermes Inc. now owns 576,628 shares of the financial services provider's stock valued at $8,592,000 after purchasing an additional 62,307 shares during the period. Geode Capital Management LLC boosted its position in shares of The RMR Group by 3.7% during the second quarter. Geode Capital Management LLC now owns 460,402 shares of the financial services provider's stock valued at $7,529,000 after purchasing an additional 16,239 shares in the last quarter. Finally, State Street Corp boosted its position in shares of The RMR Group by 2.3% during the fourth quarter. State Street Corp now owns 391,140 shares of the financial services provider's stock valued at $5,828,000 after purchasing an additional 8,679 shares in the last quarter. 42.31% of the stock is owned by institutional investors.

About The RMR Group

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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