Rent-A-Center, Inc. (RCII) revealed that its Board of Directors has approved a new common stock repurchase program and declared a hike in quarterly common stock cash dividend. Shares of the company rose 1.7% on Friday.
RCII provides technology-driven, flexible, no debt obligation leasing solutions that offer underserved consumers access to and potential ownership of high-quality durable goods that enhance the quality of life. (See Rent-A-Center stock chart on TipRanks)
The recently announced share repurchase program has the authorization to repurchase up to $500 million of the company’s common stock. The buyback plan will be carried out as and when determined by the company in the open market or private transactions.
Also, Rent-A-Center’s Board of Directors has raised the quarterly cash dividend by 10% to $0.34 for the first quarter of 2022. The dividend will be paid on January 13, 2022, to shareholders of record as of the close of business on December 16, 2021.
Price Target
Last month, KeyBanc analyst Bradley Thomas reiterated a Buy rating on the stock with a price target of $68 (upside potential of 49.3% from current levels). (See Analysts’ Top Stocks on TipRanks)
Consensus among analysts is a Strong Buy based on 3 Buys. The average Rent-A-Center price target stands at $68.33 and implies upside potential of 50%.
Smart Score
According to TipRanks’ Smart Score system, Rent-A-Center gets a 6 out of 10, which indicates that the stock is likely to perform in line with market averages.
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