FirstCash (FCFS) Cut to “Sell” at Zacks Investment Research

Zacks Investment Research lowered shares of FirstCash (NYSE:FCFS) from a hold rating to a sell rating in a report released on Tuesday, September 25th.

According to Zacks, “FirstCash Inc. is an operator of pawn stores. The company focuses on serving cash and credit constrained consumers through its retail pawn locations, which buy and sell jewelry, consumer electronics, power tools, household appliances, sporting goods, musical instruments and other merchandise. It operates primarily in the U.S., Mexico, Guatemala and El Salvador. FirstCash, Inc., formerly known as First Cash Financial Services Inc., is based in Arlington, United States. “

Several other analysts also recently weighed in on FCFS. ValuEngine downgraded FirstCash from a strong-buy rating to a buy rating in a research note on Thursday, July 5th. Credit Suisse Group downgraded FirstCash from an outperform rating to a neutral rating in a research note on Friday, June 1st. One analyst has rated the stock with a sell rating, four have given a hold rating and three have issued a buy rating to the company. FirstCash currently has a consensus rating of Hold and a consensus price target of $93.17.

Shares of FCFS traded down $0.21 during trading hours on Tuesday, reaching $76.81. 1,089 shares of the company traded hands, compared to its average volume of 283,470. The company has a quick ratio of 4.36, a current ratio of 6.48 and a debt-to-equity ratio of 0.23. The firm has a market cap of $3.63 billion, a P/E ratio of 28.25, a PEG ratio of 1.17 and a beta of 0.50. FirstCash has a fifty-two week low of $59.35 and a fifty-two week high of $95.40.

FirstCash (NYSE:FCFS) last posted its quarterly earnings data on Thursday, July 26th. The credit services provider reported $0.70 EPS for the quarter, beating analysts’ consensus estimates of $0.65 by $0.05. The business had revenue of $419.97 million for the quarter, compared to analyst estimates of $424.01 million. FirstCash had a return on equity of 10.32% and a net margin of 9.40%. The business’s revenue for the quarter was up .8% compared to the same quarter last year. During the same quarter last year, the company earned $0.52 earnings per share. As a group, equities analysts expect that FirstCash will post 3.5 EPS for the current fiscal year.

FirstCash declared that its Board of Directors has initiated a share buyback program on Thursday, July 26th that authorizes the company to repurchase $100.00 million in outstanding shares. This repurchase authorization authorizes the credit services provider to repurchase up to 2.4% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s leadership believes its stock is undervalued.

Hedge funds and other institutional investors have recently modified their holdings of the stock. Piedmont Investment Advisors LLC grew its holdings in shares of FirstCash by 6.2% during the second quarter. Piedmont Investment Advisors LLC now owns 10,567 shares of the credit services provider’s stock valued at $949,000 after buying an additional 616 shares in the last quarter. Mason Street Advisors LLC grew its position in shares of FirstCash by 5.2% during the 1st quarter. Mason Street Advisors LLC now owns 12,915 shares of the credit services provider’s stock valued at $1,049,000 after acquiring an additional 642 shares during the period. Amalgamated Bank grew its position in shares of FirstCash by 10.0% during the 2nd quarter. Amalgamated Bank now owns 7,279 shares of the credit services provider’s stock valued at $654,000 after acquiring an additional 659 shares during the period. Prudential Financial Inc. grew its position in shares of FirstCash by 0.8% during the 1st quarter. Prudential Financial Inc. now owns 79,018 shares of the credit services provider’s stock valued at $6,420,000 after acquiring an additional 660 shares during the period. Finally, Cambridge Investment Research Advisors Inc. grew its position in shares of FirstCash by 8.1% during the 2nd quarter. Cambridge Investment Research Advisors Inc. now owns 11,330 shares of the credit services provider’s stock valued at $1,018,000 after acquiring an additional 845 shares during the period. Institutional investors and hedge funds own 95.30% of the company’s stock.

FirstCash Company Profile

FirstCash, Inc operates retail-based pawn and consumer finance stores in the United States and Mexico. Its pawn stores lend money on the collateral of pledged personal property, including consumer electronics, jewelry, power tools, household appliances, sporting goods, and musical instruments; and retails previously owned merchandise acquired through pawn forfeitures, as well as through purchases from the general public.

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