Rent-A-Center Target of Unusually Large Options Trading (RCII)

Rent-A-Center Inc. (NASDAQ:RCII) saw some unusual options trading on Tuesday. Stock investors bought 8,809 put options on the stock. This is an increase of 1,061% compared to the average volume of 759 put options.

Rent-A-Center (NASDAQ RCII) traded up 0.98% during mid-day trading on Tuesday, hitting $13.44. The stock had a trading volume of 770,149 shares. The firm’s market cap is $716.37 million. Rent-A-Center has a 12-month low of $7.76 and a 12-month high of $13.71. The company has a 50-day moving average of $12.10 and a 200-day moving average of $10.49.

Rent-A-Center (NASDAQ:RCII) last posted its quarterly earnings results on Wednesday, July 26th. The company reported ($0.01) EPS for the quarter, missing the Zacks’ consensus estimate of $0.07 by $0.08. The firm had revenue of $667.64 million during the quarter, compared to analyst estimates of $667.04 million. Rent-A-Center had a negative return on equity of 43.47% and a negative net margin of 5.57%. The firm’s revenue for the quarter was down 10.9% on a year-over-year basis. During the same quarter last year, the business posted $0.41 earnings per share. Analysts expect that Rent-A-Center will post $0.06 earnings per share for the current year.

The firm also recently announced a quarterly dividend, which was paid on Thursday, July 20th. Shareholders of record on Monday, July 3rd were issued a $0.08 dividend. The ex-dividend date was Thursday, June 29th. This represents a $0.32 dividend on an annualized basis and a yield of 2.38%.

A number of equities analysts recently commented on RCII shares. BidaskClub upgraded Rent-A-Center from a “hold” rating to a “buy” rating in a research report on Sunday, July 16th. Loop Capital reiterated a “hold” rating and set a $8.00 price objective on shares of Rent-A-Center in a research report on Wednesday, April 12th. Jefferies Group LLC reduced their price objective on Rent-A-Center from $12.00 to $9.00 and set a “hold” rating on the stock in a research report on Wednesday, May 3rd. Stifel Nicolaus restated a “hold” rating and issued a $11.50 target price on shares of Rent-A-Center in a research report on Sunday, April 23rd. Finally, Zacks Investment Research upgraded Rent-A-Center from a “sell” rating to a “hold” rating in a research report on Friday, July 28th. Two analysts have rated the stock with a sell rating, five have given a hold rating, two have issued a buy rating and two have issued a strong buy rating to the stock. Rent-A-Center currently has a consensus rating of “Hold” and a consensus target price of $11.00.

In other news, Director Steven L. Pepper bought 45,000 shares of the firm’s stock in a transaction dated Tuesday, May 23rd. The shares were acquired at an average price of $10.93 per share, for a total transaction of $491,850.00. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Chairman Mark E. Speese bought 100,000 shares of the firm’s stock in a transaction dated Wednesday, May 10th. The stock was purchased at an average price of $11.70 per share, for a total transaction of $1,170,000.00. Following the transaction, the chairman now owns 844,627 shares of the company’s stock, valued at $9,882,135.90. The disclosure for this purchase can be found here. 3.40% of the stock is currently owned by company insiders.

Institutional investors have recently modified their holdings of the company. Engaged Capital LLC boosted its position in shares of Rent-A-Center by 290.2% in the first quarter. Engaged Capital LLC now owns 8,983,609 shares of the company’s stock worth $79,685,000 after buying an additional 6,681,233 shares in the last quarter. Vanguard Group Inc. boosted its position in shares of Rent-A-Center by 3.2% in the first quarter. Vanguard Group Inc. now owns 7,115,980 shares of the company’s stock worth $63,118,000 after buying an additional 223,478 shares in the last quarter. Frontier Capital Management Co. LLC boosted its position in shares of Rent-A-Center by 7.4% in the first quarter. Frontier Capital Management Co. LLC now owns 3,174,144 shares of the company’s stock worth $28,155,000 after buying an additional 217,842 shares in the last quarter. Dimensional Fund Advisors LP boosted its position in shares of Rent-A-Center by 1.0% in the first quarter. Dimensional Fund Advisors LP now owns 2,276,061 shares of the company’s stock worth $20,190,000 after buying an additional 23,437 shares in the last quarter. Finally, Brandes Investment Partners LP boosted its position in shares of Rent-A-Center by 5.9% in the first quarter. Brandes Investment Partners LP now owns 2,023,427 shares of the company’s stock worth $17,948,000 after buying an additional 113,195 shares in the last quarter.

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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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