How Does Rent Stack Up Right Now?

Rent (A:RCII) is an interesting player in the Services space, with a focus on Rental & Leasing Services. The stock has been active on the tape, currently trading at $10.57, up from yesterday’s close by -1.12%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Money managers are always interested in a company that can find the right recipe of fundamental data because it reflects something important going on underneath the surface. Rent currently trades with a market capitalization of $561.79M. That value represents a market adjusting for revenues that have been falling by -12.30% on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For RCII, the company currently has $130.30M of cash on the books, which is offset by $724.92M current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $735.98M over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of 0.11 on a per share basis this quarter. Perhaps, that suggests something about why 115.40% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, Rent recorded a 52-week high of 16.37. It is now trading 5.68 off that level. The stock is trading 11.54 its 50-day moving average by 0.85. The stock carved out a 52-week low down at 8.00.

In recent action, Rent has made a move of -12.50% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 39.39, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 51.80M with 20.48% sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of RCII.

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