Earnings and Growth Analysis : Rent-A-Center (NASDAQ:RCII)

Earnings results for Rent-A-Center (NASDAQ:RCII)

Rent-A-Center Inc. is expected* to report earnings on 05/05/2021 after market close. The report will be for the fiscal Quarter ending Mar 2021. According to Zacks Investment Research, based on 5 analysts’ forecasts, the consensus EPS forecast for the quarter is $1.11. The reported EPS for the same quarter last year was $0.67.

Rent-A-Center last released its earnings data on February 23rd, 2021. The reported $1.03 EPS for the quarter, topping the consensus estimate of $1.02 by $0.01. The company earned $716.49 million during the quarter, compared to analysts’ expectations of $716.56 million. Rent-A-Center has generated $2.24 earnings per share over the last year and currently has a price-to-earnings ratio of 17.5. Rent-A-Center has confirmed that its next quarterly earnings report will be published on Wednesday, May 5th, 2021. Rent-A-Center will be holding an earnings conference call on Wednesday, May 5th. Interested parties can register for or listen to the call using this link.

Analyst Opinion on Rent-A-Center (NASDAQ:RCII)

7 Wall Street analysts have issued ratings and price targets for Rent-A-Center in the last 12 months. Their average twelve-month price target is $53.50, predicting that the stock has a possible downside of 11.22%. The high price target for RCII is $75.00 and the low price target for RCII is $28.00. There are currently 1 hold rating, 5 buy ratings and 1 strong buy rating for the stock, resulting in a consensus rating of “Buy.”

Rent-A-Center has received a consensus rating of Buy. The company’s average rating score is 3.00, and is based on 5 buy ratings, 1 hold rating, and no sell ratings. According to analysts’ consensus price target of $53.50, Rent-A-Center has a forecasted downside of 11.2% from its current price of $60.26. Rent-A-Center has only been the subject of 3 research reports in the past 90 days.

Dividend Strength: Rent-A-Center (NASDAQ:RCII)

Rent-A-Center pays a meaningful dividend of 2.15%, higher than the bottom 25% of all stocks that pay dividends. Rent-A-Center has only been increasing its dividend for 1 years. The dividend payout ratio of Rent-A-Center is 55.36%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Rent-A-Center will have a dividend payout ratio of 32.80% next year. This indicates that Rent-A-Center will be able to sustain or increase its dividend.

Insiders buying/selling: Rent-A-Center (NASDAQ:RCII)

In the past three months, Rent-A-Center insiders have sold 91.42% more of their company’s stock than they have bought. Specifically, they have bought $1,514,689.00 in company stock and sold $2,899,369.00 in company stock. Only 0.80% of the stock of Rent-A-Center is held by insiders. 93.94% of the stock of Rent-A-Center is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Rent-A-Center (NASDAQ:RCII

Earnings for Rent-A-Center are expected to grow by 10.20% in the coming year, from $3.43 to $3.78 per share. The P/E ratio of Rent-A-Center is 17.47, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 24.15. The P/E ratio of Rent-A-Center is 17.47, which means that it is trading at a less expensive P/E ratio than the Consumer Discretionary sector average P/E ratio of about 43.88. Rent-A-Center has a P/B Ratio of 7.19. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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