FirstCash (NASDAQ:FCFS) Hits New 1-Year High – What’s Next?
by Mitch Edgeman · The Markets DailyFirstCash Holdings, Inc. (NASDAQ:FCFS – Get Free Report)’s share price hit a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $169.24 and last traded at $168.0050, with a volume of 142071 shares trading hands. The stock had previously closed at $165.85.
Wall Street Analyst Weigh In
FCFS has been the subject of several research reports. Cowen restated a “buy” rating on shares of FirstCash in a research report on Friday, October 31st. Wall Street Zen downgraded shares of FirstCash from a “strong-buy” rating to a “buy” rating in a research report on Saturday. Weiss Ratings restated a “buy (b)” rating on shares of FirstCash in a research note on Monday, December 29th. TD Cowen upped their price objective on FirstCash from $181.00 to $188.00 and gave the company a “buy” rating in a research note on Friday, October 31st. Finally, Canaccord Genuity Group reissued a “buy” rating and set a $205.00 price objective on shares of FirstCash in a report on Monday, December 8th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $167.00.
Get Our Latest Stock Analysis on FirstCash
FirstCash Price Performance
The business’s 50 day moving average is $160.12 and its two-hundred day moving average is $149.61. The company has a debt-to-equity ratio of 1.01, a quick ratio of 3.72 and a current ratio of 4.99. The firm has a market capitalization of $7.42 billion, a PE ratio of 24.25 and a beta of 0.52.
FirstCash (NASDAQ:FCFS – Get Free Report) last posted its quarterly earnings results on Thursday, October 30th. The company reported $2.26 EPS for the quarter, topping analysts’ consensus estimates of $1.91 by $0.35. FirstCash had a return on equity of 17.44% and a net margin of 8.88%.The firm had revenue of $904.27 million during the quarter, compared to analyst estimates of $845.28 million. During the same period last year, the company earned $1.67 earnings per share. The business’s revenue for the quarter was up 11.7% on a year-over-year basis. Equities research analysts anticipate that FirstCash Holdings, Inc. will post 7.7 earnings per share for the current fiscal year.
FirstCash Dividend Announcement
The business also recently announced a quarterly dividend, which was paid on Wednesday, November 26th. Shareholders of record on Friday, November 14th were issued a dividend of $0.42 per share. This represents a $1.68 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend was Friday, November 14th. FirstCash’s payout ratio is presently 24.24%.
FirstCash announced that its Board of Directors has authorized a stock buyback plan on Thursday, October 30th that authorizes the company to buyback $150.00 million in outstanding shares. This buyback authorization authorizes the company to purchase up to 2.3% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s leadership believes its stock is undervalued.
Insider Buying and Selling
In other news, insider Howard F. Hambleton sold 4,000 shares of the firm’s stock in a transaction that occurred on Monday, December 15th. The shares were sold at an average price of $163.74, for a total value of $654,960.00. Following the completion of the transaction, the insider directly owned 26,581 shares in the company, valued at approximately $4,352,372.94. This trade represents a 13.08% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, COO Thomas Brent Stuart sold 10,000 shares of the company’s stock in a transaction that occurred on Monday, November 17th. The stock was sold at an average price of $159.97, for a total transaction of $1,599,700.00. Following the sale, the chief operating officer directly owned 127,724 shares in the company, valued at $20,432,008.28. This trade represents a 7.26% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 41,000 shares of company stock valued at $6,481,395 in the last three months. Insiders own 14.77% of the company’s stock.
Institutional Investors Weigh In On FirstCash
Several large investors have recently added to or reduced their stakes in FCFS. Exchange Traded Concepts LLC increased its stake in FirstCash by 21.6% in the 4th quarter. Exchange Traded Concepts LLC now owns 6,670 shares of the company’s stock worth $1,063,000 after acquiring an additional 1,183 shares during the last quarter. Wealth Enhancement Advisory Services LLC grew its holdings in shares of FirstCash by 9.6% during the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 7,352 shares of the company’s stock worth $1,199,000 after purchasing an additional 643 shares in the last quarter. CWA Asset Management Group LLC increased its position in shares of FirstCash by 5.6% in the fourth quarter. CWA Asset Management Group LLC now owns 63,133 shares of the company’s stock worth $10,062,000 after purchasing an additional 3,351 shares during the last quarter. Park Avenue Securities LLC raised its stake in FirstCash by 15.8% in the fourth quarter. Park Avenue Securities LLC now owns 2,239 shares of the company’s stock valued at $357,000 after purchasing an additional 306 shares in the last quarter. Finally, GAMMA Investing LLC raised its stake in FirstCash by 9.2% in the fourth quarter. GAMMA Investing LLC now owns 2,728 shares of the company’s stock valued at $435,000 after purchasing an additional 229 shares in the last quarter. Institutional investors own 80.30% of the company’s stock.
About FirstCash
FirstCash, Inc (NASDAQ: FCFS) is a leading integrated operator of pawn stores and provider of short-term consumer loan services in the United States and Mexico. Through its retail pawn outlets, FirstCash offers collateral-based loans secured by personal property, enabling customers to access liquidity without a credit history or traditional bank account. The company also purchases, trades and sells a broad range of secondhand merchandise, including electronics, jewelry and power tools, through its network of conveniently located stores.
In addition to its pawn-broking activities, FirstCash provides unsecured consumer loans designed to meet urgent cash needs.