Rent-A-Center (RCII) Upgraded to “Hold” by Zacks Investment Research

Rent-A-Center (NASDAQ:RCII) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued on Friday.

According to Zacks, “Rent-A-Center's shares have underperformed the industry in the past six months, as investors remain concerned about the company’s waning top and bottom lines. In third-quarter 2017, the company posted a loss of 15 cents a share that missed the Zacks Consensus Estimate and also fell sharply from the year-ago period. Top line also slid year over year and came below the consensus mark, after surpassing the same in the preceding quarter. Comps also declined but improved sequentially. Nevertheless, the company is concentrating on a new labor model, supply chain initiative and productivity enhancements. These endeavors are directed toward improving the performance of Core U.S. segment, optimizing the Acceptance Now business and enhancing distribution channels as well as integrating retail and online offerings. The company is also rationalizing its store base and lowering its debt load. It is exploring strategic and financial alternatives.”

A number of other equities analysts also recently weighed in on RCII. BidaskClub raised shares of Rent-A-Center from a “sell” rating to a “hold” rating in a research note on Thursday. Stifel Nicolaus reissued a “hold” rating and set a $10.50 target price on shares of Rent-A-Center in a research note on Wednesday, November 1st. Loop Capital set a $8.00 target price on shares of Rent-A-Center and gave the stock a “sell” rating in a research note on Tuesday, October 31st. Raymond James Financial reissued a “market perform” rating on shares of Rent-A-Center in a research note on Wednesday, October 25th. Finally, Jefferies Group lowered their target price on shares of Rent-A-Center from $12.00 to $11.00 and set a “hold” rating for the company in a research note on Wednesday, November 1st. Two equities research analysts have rated the stock with a sell rating, five have assigned a hold rating and two have given a buy rating to the company. Rent-A-Center has an average rating of “Hold” and a consensus target price of $11.21.

Shares of Rent-A-Center (NASDAQ RCII) traded up $0.08 during trading hours on Friday, hitting $11.24. 494,555 shares of the stock were exchanged, compared to its average volume of 2,268,462. The firm has a market capitalization of $594.96, a price-to-earnings ratio of -3.43 and a beta of 0.69. The company has a current ratio of 2.55, a quick ratio of 0.46 and a debt-to-equity ratio of 2.69. Rent-A-Center has a 52 week low of $7.76 and a 52 week high of $13.89.

Rent-A-Center (NASDAQ:RCII) last announced its earnings results on Monday, October 30th. The company reported ($0.15) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.08) by ($0.07). Rent-A-Center had a negative return on equity of 0.66% and a negative net margin of 6.35%. The firm had revenue of $643.97 million for the quarter, compared to the consensus estimate of $649.09 million. During the same period in the prior year, the business earned $0.11 EPS. Rent-A-Center’s quarterly revenue was down 7.2% on a year-over-year basis. research analysts anticipate that Rent-A-Center will post -0.19 earnings per share for the current fiscal year.

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Raymond James Financial Services Advisors Inc. bought a new stake in Rent-A-Center in the second quarter valued at $120,000. Cubist Systematic Strategies LLC bought a new stake in Rent-A-Center in the second quarter valued at $132,000. Crossmark Global Holdings Inc. bought a new stake in Rent-A-Center in the third quarter valued at $132,000. Piedmont Investment Advisors LLC bought a new stake in Rent-A-Center in the second quarter valued at $136,000. Finally, Eqis Capital Management Inc. bought a new stake in Rent-A-Center in the third quarter valued at $184,000.

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About Rent-A-Center

Rent-A-Center, Inc is a rent-to-own operator in North America. The Company provides an opportunity to obtain ownership of products, such as consumer electronics, appliances, computers (including tablets), smartphones and furniture (including accessories), under rental purchase agreements. The Company operates in four segments: Core U.S., Acceptance Now, Mexico, and Franchising.

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Analyst Recommendations for Rent-A-Center (NASDAQ:RCII)

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