Rent-A-Center, Inc. (RCII) Stock: Why It’s Climbing

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Rent-A-Center, Inc. (RCII) is trending up in the market in today’s trading session. The company, one that is focused in the service space, is currently trading at $26.46 after heading up 5.33% so far today. When it comes to service sector stocks, there are quite a few aspects that have the potential to generate movement in the market. News is one of the most common reasons for movement. Here are the most recent headlines associated with RCII:

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Aug-07-19 04:30PM Rent-A-Center, Inc. Reports Second Quarter 2019 Results
08:15AM Earnings Outlook For Rent-A-Center
Aug-06-19 08:23AM Here’s Why News Corporation (NWSA) Q4 Earnings May Decline
Aug-05-19 09:21AM Can Rent-A-Center (RCII) Keep Earnings Streak Alive in Q2?
08:48AM Factors That Hold Key to Weight Watchers (WW) Q2 Earnings

Nonetheless, any time investors are making an investing decision, prospective investors should focus on much more than just news, especially in the ever highly complex service industry. Here’s what’s happing when it comes to Rent-A-Center, Inc..

What We’ve Seen From RCII

While a gain in a single session, like the move that we’re seeing from Rent-A-Center, Inc. might make some investors upset, a single session fall alone shouldn’t be the basis of a decision to, or not to, buy a company’s stock. It is generally important to look into trends further out than a single trading session. When it comes to RCII, here are the movements that we’ve seen:

  • Past 7 Days – In the last seven days, RCII has generated a change in price in the amount of -1.85%.
  • Monthly – The monthly performance from Rent-A-Center, Inc. comes to -4.23%.
  • Quarterly – Throughout the past quarter, the stock has produced a return on investment that comes to 5.88%
  • Past 6 Months – In the last six months, investors have seen a performance that works out to 50.43% from the stock.
  • YTD – Since the the first trading session of this year RCII has resulted in a ROI of 63.43%.
  • Annually – Finally, over the past full year, we’ve seen performance that comes to 78.90% out of RCII. Over this period of time, the stock has traded at a high price of -6.34% and a low price of 120.87%.

Rations That Traders Should Look Into

Digging into various key ratios having to do with a stock can provide prospective investors a look of how dangerous and/or rewarding a an investment option might be. Here are a few of the important ratios to consider when looking at RCII.

Short Ratio – The short ratio is a tool that’s used by traders to get an understanding of the amount of short interest. As the ratio goes higher, it shows that more investors are expecting that the value of the stock is headed for the top. In general, strong service stocks can come with a lower short ratio. On the other hand, we tend to see quite a few short squeezes in the sector. Nonetheless, in relation to Rent-A-Center, Inc., it’s short ratio clocks in at 4.85.

Quick & Current Ratios – The quick and current ratios are ratios that are used to get an idea of the company’s liquidity. Basically, they measure the company’s abilities to pay for its debts when they come due based on quick assets or current assets. do have good quick and current ratios. In terms of RCII, the quick and current ratios total up to 0 and 0 respectively.  

Book To Share Value – The book to share value compares the value of assets owned by the company to the share price of the stock. In this particular case, that ratio comes in at 5.46.

Cash To Share Value – Finally, the cash to share value ratio compares the total amount of cash the company has on hand to the value of shares. In this case, the cash to share value ratio is 4.26.

What Institutions And Insiders Think Of Rent-A-Center, Inc.

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in RCII, here’s what we’re seeing:

  • Institutional Investors – As it stands now, institutional investors hold 99.10% of Rent-A-Center, Inc.. However, it’s worth noting that the ownership held by institutions has seen a move in the amount of 3.18% over the past quarter.
  • Investors On The Inside – as it relates to insiders, those close to the situation currently own 0.50% of the company. Their ownership of the company has seen a move of -1.76% over the past 3 months.

What Analysts Think About Rent-A-Center, Inc.

While it’s never a smart idea to unknowingly follow the thoughts of analysts, it is a good idea to use their opinions in order to validate your own thoughts before making an investment decision in the service space. Here are the recent moves that we’ve seen from analysts when it comes to RCII.

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Aug-08-19 Upgrade Janney Neutral → Buy
Jun-24-19 Upgrade Stephens Underweight → Equal-Weight
Apr-22-19 Upgrade Raymond James Outperform → Strong Buy
Mar-15-19 Upgrade Raymond James Mkt Perform → Outperform $25
Feb-27-19 Downgrade Raymond James Outperform → Mkt Perform

What We’ve Seen In earnings results

What have ween seen from RCII in terms of financial results?Here’s the data:

  • Analyst Expectations – At the moment, analysts have expectations that Rent-A-Center, Inc. will come up with earnings per diluted share that totals up to be 2.37, with 0.55 to be reported in the next financial report. Although this isn’t tide to earnings, because we’re talking on the topic of analysts, Rent-A-Center, Inc. is presently graded as a 2.70 when rated on a scale from 1 to 5 on which 1 is the poorest Wall Street analyst grade and 5 is the best rating.
  • 5-Year Sales – Over the last 5 years, Rent-A-Center, Inc. has generated a change in sales volume that works out to be -3.00%. Earnings per diluted share over the last 5 years have generated a change of -41.80%.
  • Quarter Over Quarter – In terms of quarter over quarter earnings data, or Q/Q data as it is commonly represented in today’s society, Rent-A-Center, Inc. has experienced a earnings change by 135.50%. Rent-A-Center, Inc. has also seen movement in terms of sales in the amount of -0.20%.

What’s Going On With Share Counts?

Investors tend to like to know the counts of shares both available and outstanding. As it relates to Rent-A-Center, Inc., there are currently 55.80M and there is a float of 53.40M. These numbers mean that of the total of 55.80M shares of RCII that are out there today, 53.40M are able to trade hands in the public space.

I also like to dig into the short percentage of the float. After all, when a high portion of the float is shorted, the overall opinion in the market is that the company is going to lose value. When it comes to RCII, the short percentage of the float totals up to 9.02%. In general, high short percent of the float would be considered to be anything over 40%. Nonetheless, I have found that a short ratio over 26% is likely a play that comes with hefty risk.

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