Basswood Capital Management L.L.C. Makes New $35.24 Million Investment in Regional Management Corp. $RM

Basswood Capital Management L.L.C. acquired a new stake in Regional Management Corp. (NYSE:RM) during the second quarter, HoldingsChannel reports. The firm acquired 855,425 shares of the credit services provider’s stock, valued at approximately $35,244,000. Regional Management accounts for 1.4% of Basswood Capital Management L.L.C.’s holdings, making the stock its 19th largest position. Basswood Capital Management L.L.C. owned about 0.09% of Regional Management as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors also recently bought and sold shares of RM. BlackRock Inc. purchased a new stake in shares of Regional Management in the second quarter valued at about $47,514,000. Tieton Capital Management LLC purchased a new position in shares of Regional Management during the second quarter worth about $13,112,000. Sei Investments Co. grew its holdings in shares of Regional Management by 117.9% during the first quarter. Sei Investments Co. now owns 157,151 shares of the credit services provider’s stock worth $5,068,000 after buying an additional 85,040 shares during the last quarter. Bank of New York Mellon Corp acquired a new position in Regional Management in the 2nd quarter valued at about $3,163,000. Finally, Goldman Sachs Group Inc. increased its position in Regional Management by 45.5% in the 1st quarter. Goldman Sachs Group Inc. now owns 194,374 shares of the credit services provider’s stock valued at $5,853,000 after acquiring an additional 60,744 shares during the period. 98.89% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In related news, CAO Steven B. Barnette sold 3,274 shares of Regional Management stock in a transaction that occurred on Friday, July 10th. The stock was sold at an average price of $43.30, for a total value of $141,764.20. Following the sale, the chief accounting officer directly owned 13,472 shares in the company, valued at $583,337.60. The trade was a 19.55% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Lakhbir S. Lamba purchased 6,500 shares of the firm’s stock in a transaction that occurred on Tuesday, August 11th. The stock was acquired at an average price of $31.59 per share, for a total transaction of $205,335.00. Following the completion of the purchase, the chief executive officer owned 52,234 shares of the company’s stock, valued at approximately $1,650,072.06. This represents a 14.21% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last three months, insiders have sold 5,074 shares of company stock valued at $216,028. Company insiders own 10.90% of the company’s stock.

Regional Management Stock Down 2.4%

Shares of NYSE:RM opened at $32.54 on Thursday. Regional Management Corp. has a fifty-two week low of $30.46 and a fifty-two week high of $46.00. The company has a quick ratio of 64.04, a current ratio of 64.04 and a debt-to-equity ratio of 4.41. The firm’s 50-day simple moving average is $38.04 and its 200-day simple moving average is $35.96. The company has a market cap of $300.34 million, a price-to-earnings ratio of 6.85 and a beta of 1.02.

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

Regional Management Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Wednesday, August 19th will be given a dividend of $0.30 per share. The ex-dividend date is Wednesday, August 19th. This represents a $1.20 annualized dividend and a yield of 3.7%. Regional Management’s payout ratio is presently 25.26%.

Wall Street Analysts Forecast Growth

Several research firms have commented on RM. Weiss Ratings downgraded Regional Management from a “hold (c+)” rating to a “hold (c)” rating in a research note on Friday, August 7th. Wall Street Zen lowered Regional Management from a “buy” rating to a “hold” rating in a report on Sunday, August 9th. Citizens Jmp cut their price target on Regional Management from $45.00 to $43.00 and set a “market outperform” rating for the company in a research note on Thursday, July 30th. Finally, Citigroup restated a “market outperform” rating on shares of Regional Management in a research note on Thursday, July 30th. Two equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, Regional Management currently has an average rating of “Moderate Buy” and an average target price of $43.00.

Regional Management Company Profile

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.