Rent-A-Center, Inc., together with its subsidiaries, leases household durable goods to customers on a lease-to-own basis. The company operates in four segments: Rent-A-Center Business, Acima, Mexico, and Franchising. It offers furniture and accessories, appliances, consumer electronics, computers, tablets and smartphones, tools, tires, handbags, and other accessories under rental purchase agreements. The company also provides merchandise on an installment sales basis; and the lease-to-own transaction to consumers who do not qualify for financing from the traditional retailer through kiosks located within retailer's locations. It operates retail installment sales stores under the Get It Now and Home Choice names; lease-to-own and franchised lease-to-own stores under the Rent-A-Centre, ColorTyme, and RimTyme names; and rentacenter.com, an e-commerce platform. As of December 31, 2021, the company owned and operated approximately 1,846 stores in the United States and Puerto Rico, including 45 retail installment sales stores; 35 Acima staffed locations in North Carolina; and 123 stores in Mexico, as well as franchised 466 lease-to-own stores in 32 states. Rent-A-Center, Inc. was founded in 1960 and is headquartered in Plano, Texas.
Wall Street Analyst Weigh In
Several equities research analysts recently commented on the company. StockNews.com cut Rent-A-Center from a "buy" rating to a "hold" rating in a report on Tuesday, August 2nd. KeyCorp cut their target price on Rent-A-Center from $44.00 to $41.00 and set an "overweight" rating for the company in a research note on Friday, August 5th. Finally, Stephens cut Rent-A-Center from an "overweight" rating to an "equal weight" rating and set a $42.00 target price for the company. in a research note on Wednesday, June 29th. Two equities research analysts have rated the stock with a hold rating and three have given a buy rating to the company's stock. According to data from MarketBeat.com, Rent-A-Center presently has an average rating of "Moderate Buy" and a consensus target price of $52.00.
Rent-A-Center Price Performance
RCII Stock opened at $30.74 on Monday. The business has a fifty day moving average of $23.28 and a two-hundred day moving average of $27.06. The company has a quick ratio of 0.73, a current ratio of 3.37 and a debt-to-equity ratio of 2.45. The stock has a market cap of $1.82 billion, a price-to-earnings ratio of 43.30 and a beta of 1.67. Rent-A-Center has a 52-week low of $18.88 and a 52-week high of $67.76.
Rent-A-Center (NASDAQ:RCII - Get Rating) last posted its earnings results on Wednesday, August 3rd. The company reported $1.15 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.02 by $0.13. Rent-A-Center had a return on equity of 46.90% and a net margin of 1.02%. During the same quarter in the previous year, the business earned $1.63 earnings per share. As a group, research analysts anticipate that Rent-A-Center will post 4.2 earnings per share for the current year.
Rent-A-Center Dividend Announcement
The company also recently declared a quarterly dividend, which was paid on Tuesday, July 12th. Stockholders of record on Tuesday, June 21st were given a dividend of $0.34 per share. The ex-dividend date was Friday, June 17th. This represents a $1.36 annualized dividend and a dividend yield of 4.42%. Rent-A-Center's dividend payout ratio is currently 191.55%.
Insider Transactions at Rent-A-Center
In other news, Director Jeffrey J. Brown purchased 1,223 shares of the stock in a transaction dated Tuesday, July 12th. The stock was acquired at an average cost of $20.69 per share, for a total transaction of $25,303.87. Following the completion of the transaction, the director now directly owns 75,669 shares in the company, valued at approximately $1,565,591.61. The purchase was disclosed in a filing with the SEC, which is available at this hyperlink. Company insiders own 1.50% of the company's stock.