Aaron’s, Inc. (AAN) Stock: Is This Service Stock Worth Your Attention?

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Aaron’s, Inc. (AAN) is climbing in the market in today’s trading session. The stock, one that is focused in the service sector, is currently priced at $68.79 after climbing 9.21% so far today. When it comes to service sector companies, there are quite a few aspects that have the ability to generate price movement in the market. News is one of the most common reasons for movement. Here are the most recent headlines centered around AAN:

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Oct-08-19 09:57AM Aaron’s (AAN) Robust Progressive Segment to Drive Growth
09:24AM Rent-A-Center’s Acceptance Now, Core U.S. Units Gain Traction
Sep-27-19 08:56AM The Market Timing Secrets No One Talks About – September 27, 2019
08:39AM GameStop Divests Simply Mac, Restructuring Efforts On Track
Sep-26-19 11:35AM Edited Transcript of AAN earnings conference call or presentation 25-Jul-19 12:30pm GMT

Nonetheless, when making an investing decision, prospective investors should look into far more than just news, this is especially the case in the ever complex service industry. Here’s what’s going on with Aaron’s, Inc..

Recent Moves From AAN

While a gain in a single session, like the move that we’re seeing from Aaron’s, Inc. might make some investors upset, a single session move by itself shouldn’t be the basis of a decision to, or not to, invest in a stock. It’s generally a good idea to dig into trends for a period longer than a single trading day. As it relates to AAN, here are the returns on investment that we have seen:

  • Past 5 Trading Sessions – Over the past five trading sessions, AAN has produced a price change in the amount of 12.20%.
  • Monthly – The monthly returns from Aaron’s, Inc. works out to 9.66%.
  • Quarterly – Over the past 3 months, the company has generated a return on investment of 7.28%
  • Bi-Annually – Throughout the last six months, investors have seen a change that equates to 29.47% from the stock.
  • Year To Date – Since the close of last year AAN has resulted in a return on investment of 63.59%.
  • Full Year – Lastly, throughout the last year, investors have seen performance that comes to 38.27% from AAN. Over this period of time, the stock has sold at a high price of 0.51% and a low of 75.13%.

Ratios Of Note

Digging into a few ratios associated with a stock can provide prospective traders a look of just how dangerous and/or rewarding a an investment option might be. Below are a few of the important ratios to think about when digging into AAN.

Short Ratio – The short ratio is a measure of short interest. The higher this short ratio, the more investors are expecting that the price of the stock is headed for the top. Across the sector, strong service stocks can carry a lower short ratio. However, we tend to see quite a few short squeezes in the sector. Nonetheless, when it comes to Aaron’s, Inc., the stock’s short ratio amounts to 5.84.

Quick & Current Ratios – The quick and current ratios are tools that are used to get an idea of the company’s liquidity. Basically, they measure the company’s abilities to cover its debts as they mature with only quick assets or current assets. do have good current and quick ratios. As it relates to AAN, the quick and current ratios work out to 0 and 0 respectively.  

Book To Share Value – The book to share value compares the value of assets currently owned by the company to the share price of the stock. as it relates to Aaron’s, Inc., that ratio comes in at 27.33.

Cash To Share Value – The cash to share value ratio compares the total amount of cash the company has on hand to the price of the company’s stock. As it relates to AAN, the cash to share value ratio comes to 1.50.

Is Big Money Interested In Aaron’s, Inc.

One thing I have come to understand in my short time on Earth is that good investors tend to follow big money players. That is to say, investors that want to keep the risk down will keep an eye on investments made by institutions and those on the inside. With that said, where is the big money in regard to AAN? Here’s what’s going on:

Institutions own 0 of the company. Institutional interest has moved by 0.12% over the past three months. When it comes to insiders, those who are close to the company currently own 1.10% percent of AAN shares. Institutions have seen ownership changes of an accumulative -12.72% over the last three months.

Analyst Opinions With Regard To Aaron’s, Inc.

Although it’s never a smart idea to blindly follow the thoughts of analysts, it is a good idea to consider their analysis when validating your own before making an investment decision in the service sector. Below you’ll find the most recent moves that we’ve seen from analysts as it relates to AAN.

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Sep-26-19 Initiated BofA/Merrill Buy $75
Jun-10-19 Reiterated KeyBanc Capital Markets Overweight $72 → $75
Feb-21-19 Upgrade Northcoast Neutral → Buy $65
Oct-09-18 Downgrade Northcoast Buy → Neutral
Apr-30-18 Upgrade Loop Capital Hold → Buy

Financial Results And Expectations

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $4.49. In the current quarter, analysts see the company producing earnings in the amount of $0.82. Over the last 5 years, AAN has generated revenue in the amount of $11.40% with earnings coming in at 11.90%. On a quarter over quarter basis, earnings have seen movement of 14.10% and revenue has seen movement of 4.30%.

Interested In How Many Shares Are Available?

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 66.81M shares of Aaron’s, Inc. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, AAN has a float of 66.75M.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to AAN, the short percent of the float is 4.91%.

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