The Aaron’s Company, Inc. (NYSE:AAN) to Issue Quarterly Dividend of $0.13

The Aaron’s Company, Inc. (NYSE:AAN) announced a quarterly dividend on Tuesday, May 7th, Wall Street Journal reports. Shareholders of record on Friday, June 14th will be given a dividend of 0.125 per share on Wednesday, July 3rd. This represents a $0.50 annualized dividend and a yield of 6.87%. The ex-dividend date of this dividend is Friday, June 14th.

Aaron’s has a payout ratio of 78.1% meaning its dividend is currently covered by earnings, but may not be in the future if the company’s earnings tumble. Analysts expect Aaron’s to earn $0.67 per share next year, which means the company should continue to be able to cover its $0.50 annual dividend with an expected future payout ratio of 74.6%.

Aaron’s Stock Performance

AAN traded up $0.26 on Tuesday, hitting $7.28. The company’s stock had a trading volume of 448,339 shares, compared to its average volume of 263,004. Aaron’s has a 12 month low of $6.62 and a 12 month high of $16.16. The firm has a market cap of $229.25 million, a P/E ratio of 93.25 and a beta of 1.31. The company has a quick ratio of 0.73, a current ratio of 1.04 and a debt-to-equity ratio of 0.28. The company’s 50 day simple moving average is $7.26 and its 200-day simple moving average is $8.91.

Aaron’s (NYSE:AAN) last released its quarterly earnings data on Monday, May 6th. The company reported ($0.15) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.08) by ($0.07). The company had revenue of $511.50 million for the quarter, compared to the consensus estimate of $521.05 million. Aaron’s had a net margin of 0.13% and a return on equity of 3.59%. The business’s revenue for the quarter was down 7.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.66 earnings per share. Analysts forecast that Aaron’s will post 0.08 EPS for the current year.

Analysts Set New Price Targets

AAN has been the topic of several recent analyst reports. StockNews.com upgraded shares of Aaron’s from a “hold” rating to a “buy” rating in a research note on Saturday, April 6th. Stifel Nicolaus reiterated a “hold” rating and issued a $7.00 target price on shares of Aaron’s in a research note on Monday, March 11th. TD Cowen initiated coverage on shares of Aaron’s in a research note on Friday, March 8th. They issued a “market perform” rating and a $7.00 target price on the stock. Finally, Truist Financial lowered their target price on shares of Aaron’s from $12.00 to $9.00 and set a “hold” rating on the stock in a research note on Wednesday, February 28th. Four research analysts have rated the stock with a hold rating and three have given a buy rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $11.67.

Aaron’s Company Profile

Headquartered in Atlanta, The Aaron’s Company, Inc (NYSE: AAN) is a leading, technology-enabled, omnichannel provider of lease-purchase solutions. Aaron’s engages in direct-to-consumer sales and lease ownership of furniture, appliances, consumer electronics and accessories through its approximately 1,300 company-operated and franchised stores in 47 states and Canada, as well as its e-commerce platform, Aarons.com.