Regional Management (NYSE:RM) Cut to Hold at Wall Street Zen

Wall Street Zen downgraded shares of Regional Management (NYSE:RM) from a buy rating to a hold rating in a research note issued to investors on Sunday morning.

A number of other research firms have also issued reports on RM. Citizens Jmp dropped their target price on Regional Management from $45.00 to $43.00 and set a “market outperform” rating on the stock in a report on Thursday, July 30th. Weiss Ratings downgraded Regional Management from a “hold (c+)” rating to a “hold (c)” rating in a report on Friday. Finally, Citigroup reiterated a “market outperform” rating on shares of Regional Management in a research report on Thursday, July 30th. Two investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $43.00.

Regional Management Stock Performance

NYSE RM opened at $31.65 on Friday. The company has a quick ratio of 64.04, a current ratio of 64.04 and a debt-to-equity ratio of 4.41. Regional Management has a 52-week low of $30.46 and a 52-week high of $46.00. The business’s 50-day moving average price is $38.66 and its 200 day moving average price is $36.26. The firm has a market cap of $292.09 million, a P/E ratio of 6.66 and a beta of 1.02.

Regional Management (NYSE:RM) last issued its quarterly earnings results on Wednesday, July 29th. The credit services provider reported $0.85 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.81 by $0.04. Regional Management had a return on equity of 12.49% and a net margin of 6.98%.The firm had revenue of $168.01 million for the quarter, compared to analysts’ expectations of $165.69 million.

Regional Management Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Wednesday, August 19th will be issued a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a yield of 3.8%. The ex-dividend date of this dividend is Wednesday, August 19th. Regional Management’s payout ratio is currently 25.26%.

Insider Activity at Regional Management

In other news, Director Sandra K. Johnson sold 1,000 shares of the stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $36.00, for a total transaction of $36,000.00. Following the completion of the transaction, the director directly owned 21,933 shares of the company’s stock, valued at approximately $789,588. This represents a 4.36% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CAO Steven B. Barnette sold 3,274 shares of the firm’s stock in a transaction that occurred on Friday, July 10th. The shares were sold at an average price of $43.30, for a total value of $141,764.20. Following the completion of the sale, the chief accounting officer directly owned 13,472 shares of the company’s stock, valued at $583,337.60. This represents a 19.55% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 5,874 shares of company stock worth $245,028 in the last quarter. 10.90% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Regional Management

Hedge funds and other institutional investors have recently bought and sold shares of the business. State of Alaska Department of Revenue acquired a new position in shares of Regional Management during the 4th quarter worth $25,000. Wexford Capital LP acquired a new stake in shares of Regional Management in the third quarter valued at about $32,000. Advisory Services Network LLC purchased a new stake in Regional Management during the third quarter worth about $39,000. Kestra Advisory Services LLC purchased a new stake in Regional Management during the fourth quarter worth about $49,000. Finally, BNP Paribas Financial Markets grew its position in Regional Management by 45.3% during the third quarter. BNP Paribas Financial Markets now owns 2,077 shares of the credit services provider’s stock worth $81,000 after buying an additional 648 shares during the period. Institutional investors and hedge funds own 98.89% of the company’s stock.

About Regional Management

Regional Management Corp., headquartered in Wilmington, North Carolina, is a consumer finance company specializing in installment loan products for underbanked individuals. Since its founding in 1977, the company has developed a network of field-based branches alongside a digital platform to offer credit solutions in rural and small-town markets across the United States.

The company’s core offerings include consumer installment loans for everyday purchases, auto refinancing and lease buyouts, as well as ancillary services such as insurance referrals.