Wall Street Zen Downgrades FirstCash (NASDAQ:FCFS) to Buy

Key Points

• Wall Street Zen downgraded FirstCash from strong-buy to buy, even as other analysts remained generally positive; the consensus rating still sits at Buy with an average price target of $198.
• FirstCash reported better-than-expected quarterly results, posting EPS of $2.69 versus estimates of $2.30 and revenue of $1.05 billion, while revenue rose 25.7% from a year earlier.
• The stock has been trading near its highs, opening at $227.68 with a 52-week high of $230.71; meanwhile, insiders have sold shares recently, and institutional investors continue to hold a large majority of the company.

FirstCash (NASDAQ:FCFS - Get Free Report) was downgraded by analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research note issued to investors on Sunday.

A number of other research analysts have also weighed in on the stock. Canaccord Genuity Group raised their price objective on shares of FirstCash from $242.00 to $252.00 and gave the company a "buy" rating in a research note on Friday, April 24th. Weiss Ratings downgraded FirstCash from a "buy (a-)" rating to a "buy (b+)" rating in a research note on Monday, April 27th. Zacks Research upgraded shares of FirstCash from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, April 29th. Finally, TD Cowen lifted their target price on shares of FirstCash from $205.00 to $235.00 and gave the stock a "buy" rating in a research note on Friday, April 24th. Two investment analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of "Buy" and a consensus price target of $198.00.

FirstCash Trading Up 1.2%

Shares of FirstCash stock opened at $227.68 on Friday. The company has a debt-to-equity ratio of 0.98, a quick ratio of 3.42 and a current ratio of 4.77. FirstCash has a 52 week low of $119.21 and a 52 week high of $230.71. The stock has a 50 day moving average price of $199.64 and a two-hundred day moving average price of $176.90. The stock has a market capitalization of $9.98 billion, a PE ratio of 28.53 and a beta of 0.52.

FirstCash (NASDAQ:FCFS - Get Free Report) last issued its earnings results on Thursday, April 23rd. The company reported $2.69 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.30 by $0.39. FirstCash had a return on equity of 18.68% and a net margin of 9.15%.The company had revenue of $1.05 billion for the quarter, compared to analysts' expectations of $1 billion. During the same period last year, the business earned $2.07 EPS. FirstCash's quarterly revenue was up 25.7% compared to the same quarter last year. As a group, equities analysts anticipate that FirstCash will post 11.3 earnings per share for the current fiscal year.

Insider Buying and Selling at FirstCash

In other news, insider Howard F. Hambleton sold 4,000 shares of the firm's stock in a transaction that occurred on Wednesday, February 18th. The shares were sold at an average price of $185.12, for a total value of $740,480.00. Following the transaction, the insider owned 35,406 shares in the company, valued at approximately $6,554,358.72. This trade represents a 10.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, COO Thomas Brent Stuart sold 10,000 shares of the firm's stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $182.53, for a total transaction of $1,825,300.00. Following the completion of the sale, the chief operating officer directly owned 150,846 shares in the company, valued at approximately $27,533,920.38. This trade represents a 6.22% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 18,500 shares of company stock valued at $3,440,840. Corporate insiders own 2.93% of the company's stock.

Institutional Trading of FirstCash

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. JPMorgan Chase & Co. lifted its position in shares of FirstCash by 96.0% in the 3rd quarter. JPMorgan Chase & Co. now owns 240,441 shares of the company's stock worth $38,091,000 after purchasing an additional 117,788 shares during the period. Stephens Investment Management Group LLC lifted its position in FirstCash by 1.0% during the 3rd quarter. Stephens Investment Management Group LLC now owns 857,510 shares of the company's stock valued at $135,847,000 after acquiring an additional 8,610 shares during the period. Vanguard Group Inc. lifted its position in FirstCash by 2.1% during the 3rd quarter. Vanguard Group Inc. now owns 4,096,956 shares of the company's stock valued at $649,040,000 after acquiring an additional 83,113 shares during the period. Coastal Bridge Advisors LLC bought a new position in FirstCash during the 3rd quarter valued at approximately $1,361,000. Finally, Victory Capital Management Inc. increased its holdings in shares of FirstCash by 76.3% during the third quarter. Victory Capital Management Inc. now owns 534,571 shares of the company's stock valued at $84,687,000 after acquiring an additional 231,379 shares in the last quarter. Hedge funds and other institutional investors own 80.30% of the company's stock.

FirstCash Company Profile

FirstCash, Inc NASDAQ: FCFS is a leading integrated operator of pawn stores and provider of short-term consumer loan services in the United States and Mexico. Through its retail pawn outlets, FirstCash offers collateral-based loans secured by personal property, enabling customers to access liquidity without a credit history or traditional bank account. The company also purchases, trades and sells a broad range of secondhand merchandise, including electronics, jewelry and power tools, through its network of conveniently located stores.

In addition to its pawn-broking activities, FirstCash provides unsecured consumer loans designed to meet urgent cash needs.

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