Regional Management (NYSE:RM) Downgraded to “Hold” at Zacks Investment Research

Regional Management (NYSE:RM) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Friday, Zacks.com reports.

According to Zacks, “Regional Management Corp. is a diversified specialty consumer finance company engaged in providing loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies and other traditional lenders. It offers Small Installment Loans, Large Installment Loans, Automobile Purchase Loans, Furniture and Appliance Purchase Loans and Insurance Products. The Company has operations primarily in South Carolina, Texas, North Carolina, Tennessee and Alabama. Regional Management Corp. is headquartered in Greenville, South Carolina. “

Several other brokerages have also commented on RM. ValuEngine raised Regional Management from a “strong sell” rating to a “sell” rating in a report on Thursday, August 1st. Janney Montgomery Scott raised Regional Management from a “neutral” rating to a “buy” rating in a report on Thursday, May 9th. One analyst has rated the stock with a sell rating, three have assigned a hold rating and three have issued a buy rating to the stock. The company presently has a consensus rating of “Hold” and a consensus target price of $31.80.

Regional Management stock opened at $26.96 on Friday. The firm has a market cap of $311.15 million, a price-to-earnings ratio of 8.50 and a beta of 0.93. The stock has a fifty day simple moving average of $26.16 and a two-hundred day simple moving average of $25.83. Regional Management has a 12 month low of $22.90 and a 12 month high of $35.37. The company has a current ratio of 48.69, a quick ratio of 48.69 and a debt-to-equity ratio of 2.44.

Regional Management (NYSE:RM) last posted its earnings results on Wednesday, July 31st. The credit services provider reported $0.70 EPS for the quarter, topping the Zacks’ consensus estimate of $0.65 by $0.05. The business had revenue of $84.27 million during the quarter, compared to analyst estimates of $80.50 million. Regional Management had a return on equity of 13.37% and a net margin of 10.59%. On average, equities research analysts forecast that Regional Management will post 3.43 EPS for the current fiscal year.

In other Regional Management news, COO John D. Schachtel acquired 4,000 shares of the stock in a transaction dated Monday, August 12th. The shares were acquired at an average cost of $27.46 per share, for a total transaction of $109,840.00. Following the completion of the transaction, the chief operating officer now directly owns 26,378 shares of the company’s stock, valued at $724,339.88. The purchase was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Basswood Partners, L.L.C. bought 62,155 shares of the firm’s stock in a transaction that occurred on Tuesday, May 28th. The stock was purchased at an average price of $24.03 per share, for a total transaction of $1,493,584.65. The disclosure for this purchase can be found here. In the last ninety days, insiders purchased 208,101 shares of company stock valued at $5,227,891 and sold 26,524 shares valued at $726,507. Insiders own 9.50% of the company’s stock.

Hedge funds and other institutional investors have recently modified their holdings of the business. Bank of Montreal Can grew its stake in Regional Management by 203.4% in the second quarter. Bank of Montreal Can now owns 1,174 shares of the credit services provider’s stock worth $31,000 after purchasing an additional 787 shares in the last quarter. Public Employees Retirement System of Ohio lifted its holdings in Regional Management by 5.0% during the second quarter. Public Employees Retirement System of Ohio now owns 19,187 shares of the credit services provider’s stock worth $506,000 after buying an additional 917 shares during the period. BNP Paribas Arbitrage SA lifted its holdings in Regional Management by 210.7% during the first quarter. BNP Paribas Arbitrage SA now owns 1,948 shares of the credit services provider’s stock worth $48,000 after buying an additional 1,321 shares during the period. Charles Schwab Investment Management Inc. lifted its holdings in shares of Regional Management by 0.9% during the 2nd quarter. Charles Schwab Investment Management Inc. now owns 144,796 shares of the credit services provider’s stock valued at $3,819,000 after purchasing an additional 1,343 shares during the last quarter. Finally, Prudential Financial Inc. lifted its holdings in shares of Regional Management by 1.6% during the 2nd quarter. Prudential Financial Inc. now owns 89,301 shares of the credit services provider’s stock valued at $2,355,000 after purchasing an additional 1,376 shares during the last quarter. 90.46% of the stock is currently owned by institutional investors.

Regional Management Company Profile

Regional Management Corp., a diversified consumer finance company, provides various installment loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other traditional lenders. The company offers small and large installment loans; loans to finance the purchase of furniture, appliances, and other retail products; insurance products, including credit life, credit accident and health, credit property, vehicle single interest, and credit involuntary unemployment insurance; collateral protection insurance; and property insurance, as well as reinsurance products.

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