Rent-A-Center Inc. (NASDAQ:RCII) has a beta of 1.55, a 12-month trailing P/E ratio of 7.02, and a growth ratio of 1.40. The stock’s Relative Strength Index (RSI) is 59.72, with weekly volatility at 3.54% and ATR at 1.18. The RCII stock’s 52-week price range has touched low of $11.69 and a $31.14 high. Its shares traded higher over the last trading session, gaining 1.18% on 07/06/20. The shares fell to a low of $26.55 before closing at $27.00. Intraday shares traded counted 0.33 million, which was 45.07% higher than its 30-day average trading volume of 605.20K. RCII’s previous close was $26.68 while the outstanding shares total 54.77M.
Investors have identified the Rental & Leasing Services company Rent-A-Center Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $1.45 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Rent-A-Center Inc. (RCII) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 1092553000 million total, with 336032000 million as their total liabilities.
RCII were able to record 38.25 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 112.42 million. In cash movements, the company had a total of 47.4 million as operating cash flow.
Potential earnings growth for Rent-A-Center Inc. (RCII)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Rent-A-Center Inc. recorded a total of 701.94 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.75% coming in sequential stages and their sales for the third quarter increasing by 4.85%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 281.76 million trying to sell their products during the last quarter, with the result yielding a gross income of 420.18 million. This allows shareholders to hold on to 54.77M with the revenue now reading 0.90 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.59 cents a share).
Having a look at the company’s valuation, the company is expected to record 2.24 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on RCII sounds very interesting.
Is the stock of RCII attractive?
In related news, Director, Gade Michael J bought 1,600 shares of the company’s stock in a transaction that recorded on May 15. The purchase was performed at an average price of 23.40, for a total value of 37,432. As the purchase deal closes, the Director, Hetrick Christopher B. now bought 8,725 shares of the company’s stock, valued at 207,655. Also, Director, Hetrick Christopher B. bought 5,000 shares of the company’s stock in a deal that was recorded on May 08. The shares were cost at an average price of 22.26 per share, with a total market value of 111,300. Following this completion of disposal, the Director, BROWN JEFFREY J now holds 20,000 shares of the company’s stock, valued at 460,118. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.60%.
5 out of 8 analysts covering the stock have rated it a Buy, while 3 have maintained a Hold recommendation on Rent-A-Center Inc.. 0 analysts has assigned a Sell rating on the RCII stock. The 12-month mean consensus price target for the company’s shares has been set at $29.57.