Rent-A-Center Inc. [NASDAQ: RCII] gained 11.41% on the last trading session, reaching $39.24 price per share at the time. The company report on December 21, 2020 that Rent-A-Center Enters Into Definitive Agreement to Acquire Acima to Create Leading Virtual Lease-to-Own Platform, Accelerate Long-Term Growth.
Acima operates in over 15,000 active retail partner locations and e-commerce platforms with approximately $1.25 billion in revenue and $225 million in adjusted EBITDA expected for 2020.
$1.65 billion cash and stock transaction that expands Rent-A-Center’s position as a premier fintech platform in both the traditional and virtual LTO segments.
Rent-A-Center Inc. represents 53.99 million in outstanding shares, while the company has a total market value of $2.14 billion with the latest information. RCII stock price has been found in the range of $36.39 to $40.33.
If compared to the average trading volume of 537.08K shares, RCII reached a trading volume of 1224919 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Rent-A-Center Inc. [RCII]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for RCII shares is $38.33 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on RCII stock is a recommendation set at 2.10. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Loop Capital have made an estimate for Rent-A-Center Inc. shares, keeping their opinion on the stock as Hold, with their previous recommendation back on October 12, 2020. The new note on the price target was released on July 01, 2020, representing the official price target for Rent-A-Center Inc. stock.
The Average True Range (ATR) for Rent-A-Center Inc. is set at 1.48, with the Price to Sales ratio for RCII stock in the period of the last 12 months amounting to 0.77. The Price to Book ratio for the last quarter was 3.90, with the Price to Cash per share for the same quarter was set at 4.18. Price to Free Cash Flow for RCII in the course of the last twelve months was 10.45.
Trading performance analysis for RCII stock
Rent-A-Center Inc. [RCII] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 15.68. With this latest performance, RCII shares gained by 14.50% in over the last four-week period, additionally plugging by 51.21% over the last 6 months – not to mention a rise of 38.71% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for RCII stock in for the last two-week period is set at 72.05, with the RSI for the last a single of trading hit 78.19, and the three-weeks RSI is set at 68.00 for Rent-A-Center Inc. [RCII]. The present Moving Average for the last 50 days of trading for this stock 33.57, while it was recorded at 35.84 for the last single week of trading, and 27.20 for the last 200 days.
Rent-A-Center Inc. [RCII]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Rent-A-Center Inc. [RCII] shares currently have an operating margin of +7.23 and a Gross Margin at +35.68. Rent-A-Center Inc.’s Net Margin is presently recorded at +6.50.
Return on Total Capital for RCII is now 21.42, given the latest momentum, and Return on Invested Capital for the company is 20.63. Return on Equity for this stock inclined to 46.56, with Return on Assets sitting at 11.65. When it comes to the capital structure of this company, Rent-A-Center Inc. [RCII] has a Total Debt to Total Equity ratio set at 112.42. Additionally, RCII Total Debt to Total Capital is recorded at 52.92, with Total Debt to Total Assets ending up at 32.60. Long-Term Debt to Equity for the company is recorded at 86.56, with the Long-Term Debt to Total Capital now at 40.75.
Reflecting on the efficiency of the workforce at the company, Rent-A-Center Inc. [RCII] managed to generate an average of $11,969 per employee. Receivables Turnover for the company is 34.73 with a Total Asset Turnover recorded at a value of 1.79.
Rent-A-Center Inc. [RCII]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, Rent-A-Center Inc. posted 0.58/share EPS, while the average EPS was predicted by analysts to be reported at 0.57/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 1.80%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for RCII. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Rent-A-Center Inc. go to 5.00%.
An analysis of insider ownership at Rent-A-Center Inc. [RCII]
There are presently around $2,078 million, or 99.30% of RCII stock, in the hands of institutional investors. The top three institutional holders of RCII stocks are: VANGUARD GROUP INC with ownership of 7,339,652, which is approximately -8.41% of the company’s market cap and around 0.30% of the total institutional ownership; BLACKROCK INC., holding 7,265,646 shares of the stock with an approximate value of $285.1 million in RCII stocks shares; and RENAISSANCE TECHNOLOGIES LLC, currently with $123.81 million in RCII stock with ownership of nearly -12.724% of the company’s market capitalization.
Positions in Rent-A-Center Inc. stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 136 institutional holders increased their position in Rent-A-Center Inc. [NASDAQ:RCII] by around 5,709,496 shares. Additionally, 98 investors decreased positions by around 7,663,233 shares, while 31 investors held positions by with 39,587,999 shares. The mentioned changes placed institutional holdings at 52,960,728 shares, according to the latest SEC report filing. RCII stock had 57 new institutional investments in for a total of 2,287,423 shares, while 17 institutional investors sold positions of 321,683 shares during the same period.