Drilling Down Into Rent-A-Center, Inc. (RCII)

Rent-A-Center, Inc. (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 $9.25, down from yesterday’s close by -3.75%. 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

Rent-A-Center, Inc. (RCII) currently trades with a market capitalization of $481.09 Million. That value represents a market adjusting for revenues that have been falling by -7.19 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $46.75 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of -$0.07 on a per share basis this quarter. Perhaps, that suggests something about why 2.35% 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-A-Center, Inc. recorded a 52-week high of $13.89. It is now trading 4.64% off that level. The stock is trading $10.95 its 50-day moving average by 1.7%. The stock carved out a 52-week low down at $7.93.

In recent action, Rent-A-Center, Inc. (RCII) has made a move of -18.29% 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 13.62, 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 53.46% with $51.89 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of RCII.

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