The RMR Group (NASDAQ:RMR) Stock Price Up 6.1% After Earnings Beat

The RMR Group Inc. (NASDAQ:RMR) shot up 6.1% on Thursday following a better than expected earnings announcement. The company traded as high as $16.59 and last traded at $16.6280. 93,314 shares changed hands during trading, a decline of 58% from the average session volume of 220,026 shares. The stock had previously closed at $15.67.

The financial services provider reported $0.20 earnings per share for the quarter, topping analysts’ consensus estimates of $0.18 by $0.02. The business had revenue of $180.42 million for the quarter, compared to analyst estimates of $214.10 million. The RMR Group had a return on equity of 4.03% and a net margin of 3.52%.

The RMR Group Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, February 19th. Shareholders of record on Monday, January 26th will be paid a $0.45 dividend. This represents a $1.80 dividend on an annualized basis and a yield of 10.2%. The ex-dividend date is Monday, January 26th. The RMR Group’s dividend payout ratio is currently 171.43%.

Analyst Ratings Changes

Several analysts have recently weighed in on the stock. Wall Street Zen raised shares of The RMR Group from a “sell” rating to a “hold” rating in a research note on Monday, December 22nd. LADENBURG THALM/SH SH started coverage on The RMR Group in a report on Wednesday, January 7th. They set a “buy” rating and a $17.00 price objective on the stock. Weiss Ratings upgraded The RMR Group from a “sell (d+)” rating to a “hold (c-)” rating in a report on Thursday. Finally, Zacks Research raised The RMR Group from a “strong sell” rating to a “hold” rating in a research report on Monday, January 19th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $20.50.

Insiders Place Their Bets

In related news, major shareholder Tremont Realty Capital Llc bought 2,015,748 shares of the company’s stock in a transaction on Thursday, December 11th. The shares were acquired at an average price of $8.65 per share, with a total value of $17,436,220.20. Following the transaction, the insider owned 4,577,835 shares of the company’s stock, valued at $39,598,272.75. The trade was a 78.68% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 54.69% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On The RMR Group

A number of hedge funds have recently made changes to their positions in the stock. Commons Capital LLC boosted its stake in The RMR Group by 400.3% in the second quarter. Commons Capital LLC now owns 62,564 shares of the financial services provider’s stock valued at $1,023,000 after acquiring an additional 50,059 shares in the last quarter. CWM LLC lifted its holdings in shares of The RMR Group by 216.0% during the 2nd quarter. CWM LLC now owns 6,522 shares of the financial services provider’s stock valued at $107,000 after purchasing an additional 4,458 shares during the last quarter. Bank of Montreal Can purchased a new stake in shares of The RMR Group during the 2nd quarter valued at $176,000. Vanguard Personalized Indexing Management LLC acquired a new stake in shares of The RMR Group in the 2nd quarter worth $164,000. Finally, Ritholtz Wealth Management purchased a new position in The RMR Group during the 3rd quarter worth $228,000. 42.31% of the stock is currently owned by hedge funds and other institutional investors.

The RMR Group Stock Performance

The company has a 50 day moving average of $15.63 and a two-hundred day moving average of $15.82. The stock has a market capitalization of $564.26 million, a PE ratio of 12.75 and a beta of 0.96.

The RMR Group Company Profile

The RMR Group, Inc (NASDAQ: RMR) is a publicly traded asset management company that specializes in providing comprehensive real estate and investment management services to both public and private entities. Acting as an external manager, RMR offers a range of services encompassing property management, asset management, fund administration, accounting, investor relations and compliance oversight. Its client base includes real estate investment trusts (REITs), real estate operating companies (REOCs), closed-end real estate funds and institutional investors.

Founded in 1986, RMR Group has built a business model centered on recurring fee revenue generated through long-term service agreements with its managed entities.