FirstCash (NASDAQ:FCFS) Stock Gets Price Target Reduction from TD Cowen

FirstCash (NASDAQ:FCFS) had its price objective lowered by TD Cowen from $242.00 to $235.00 in a research report sent to investors on Friday,Benzinga reports. The brokerage currently has a buy rating on the stock.

A number of other research firms have also weighed in on FCFS. Canaccord Genuity Group increased their target price on shares of FirstCash from $252.00 to $265.00 and gave the stock a “buy” rating in a report on Thursday, October 15th. Wall Street Zen cut FirstCash from a “buy” rating to a “hold” rating in a research note on Saturday, October 10th. Weiss Ratings upgraded FirstCash from a “buy (b)” rating to a “buy (b+)” rating in a report on Thursday, October 8th. Loop Capital upgraded FirstCash from a “hold” rating to a “buy” rating and set a $255.00 price target on the stock in a report on Monday, August 10th. Finally, Stephens reiterated an “overweight” rating and issued a $250.00 price objective on shares of FirstCash in a research report on Thursday, October 1st. Five analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $247.50.

FirstCash Stock Performance

FCFS stock opened at $172.75 on Friday. The company has a market capitalization of $7.49 billion, a PE ratio of 18.72 and a beta of 0.55. The company’s 50 day moving average price is $216.47 and its two-hundred day moving average price is $216.19. FirstCash has a one year low of $146.77 and a one year high of $238.93. The company has a debt-to-equity ratio of 1.08, a quick ratio of 3.42 and a current ratio of 4.81.

FirstCash (NASDAQ:FCFS) last posted its quarterly earnings results on Thursday, October 22nd. The company reported $2.68 earnings per share for the quarter, topping the consensus estimate of $2.63 by $0.05. FirstCash had a net margin of 9.48% and a return on equity of 20.17%. The business had revenue of $1.10 billion during the quarter, compared to the consensus estimate of $1.07 billion. During the same period in the previous year, the firm posted $1.86 earnings per share. The firm’s revenue for the quarter was up 17.7% on a year-over-year basis. As a group, analysts predict that FirstCash will post 11.59 earnings per share for the current fiscal year.

FirstCash Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, November 24th. Stockholders of record on Friday, November 13th will be given a $0.46 dividend. The ex-dividend date of this dividend is Friday, November 13th. This represents a $1.84 dividend on an annualized basis and a dividend yield of 1.1%. This is an increase from FirstCash’s previous quarterly dividend of $0.42. FirstCash’s payout ratio is presently 18.20%.

Insider Buying and Selling

In related news, insider Howard Hambleton sold 2,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $212.98, for a total value of $425,960.00. Following the sale, the insider owned 30,406 shares in the company, valued at $6,475,869.88. This represents a 6.17% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Thomas Stuart sold 5,348 shares of the firm’s stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $214.63, for a total value of $1,147,841.24. Following the transaction, the chief operating officer directly owned 135,498 shares of the company’s stock, valued at approximately $29,081,935.74. This trade represents a 3.80% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 14,098 shares of company stock worth $3,051,281. 2.86% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On FirstCash

Several hedge funds have recently added to or reduced their stakes in FCFS. Sigma Planning Corp grew its stake in shares of FirstCash by 73.8% in the third quarter. Sigma Planning Corp now owns 8,184 shares of the company’s stock worth $1,729,000 after acquiring an additional 3,475 shares during the last quarter. Sterling Capital Management LLC increased its holdings in shares of FirstCash by 827.6% during the third quarter. Sterling Capital Management LLC now owns 1,345 shares of the company’s stock valued at $284,000 after acquiring an additional 1,200 shares in the last quarter. Inspire Investing LLC increased its holdings in shares of FirstCash by 10.2% during the third quarter. Inspire Investing LLC now owns 2,359 shares of the company’s stock valued at $498,000 after acquiring an additional 218 shares in the last quarter. Root Financial Partners LLC purchased a new position in shares of FirstCash in the 3rd quarter worth about $57,000. Finally, Crossmark Global Holdings Inc. raised its position in shares of FirstCash by 11.6% in the 3rd quarter. Crossmark Global Holdings Inc. now owns 1,996 shares of the company’s stock worth $422,000 after purchasing an additional 207 shares during the last quarter. 80.30% of the stock is owned by institutional investors.

Key FirstCash News

Here are the key news stories impacting FirstCash this week:

• Positive Sentiment: Record earnings and revenue: Third-quarter revenue increased 17.7% year over year to $1.10 billion, while adjusted EPS of $2.68 exceeded the $2.63 consensus estimate. GAAP net income rose 22% to $101.2 million, and adjusted EBITDA increased 18% to $213.0 million. FirstCash third-quarter results
• Positive Sentiment: Pawn operations remain strong: Revenue and segment income from the U.S., Latin American and U.K. pawn businesses each benefited from solid growth, with combined pawn revenue up 28%. Pawn receivables reached a record $908 million, while the company added 14 stores during the quarter and 42 year to date.
• Positive Sentiment: Shareholder returns increased: FirstCash raised its quarterly dividend 10% to $0.46 per share and repurchased $123 million of stock in the quarter, bringing year-to-date buybacks to $250 million.
• Positive Sentiment: Analyst remains bullish: TD Cowen reduced its price target from $242 to $235 but maintained a “Buy” rating, implying substantial potential upside based on the referenced price.
• Neutral Sentiment: Growth outlook is positive but mixed: Management expects continued double-digit growth in pawn operations and is pursuing the Ramsdens acquisition, which could add more than 175 U.K. locations. However, completion remains subject to antitrust approval and other closing conditions.
• Negative Sentiment: AFF remains a drag: Gross transaction volume in the retail POS payment-solutions segment fell 15% year over year, while net revenue declined 20%. Management expects fourth-quarter volume to decrease in the mid-teens percentage range and net revenue to fall 15%–20%, reflecting weakness in furniture and other discretionary retail.
• Negative Sentiment: Legal overhang: The Law Offices of Frank R. Cruz announced an investigation into potential securities-law violations related to company disclosures on October 22. The announcement does not establish wrongdoing, but it adds uncertainty and may weigh on sentiment. FirstCash securities investigation

FirstCash Company Profile

FirstCash Holdings, Inc is a specialty financial services and retail company that operates pawn stores in the United States and Mexico. Through its pawn operations, the company provides short-term, collateral-backed loans to consumers who pledge personal property as security. Customers can reclaim their pledged items by repaying the loan and applicable fees within the required period.

The company also generates revenue by selling merchandise that has been forfeited on pawn loans or acquired through other purchasing activities.