Regional Management (RM) Declares $0.30 Dividend

Regional Management said on February 8, 2023 that its board of directors declared a regular quarterly dividend of $0.30 per share ($1.20 annualized). Shareholders of record as of February 21, 2023 will receive the payment on March 15, 2023. Previously, the company paid $0.30 per share.

At the current share price of $32.84 / share, the stock's dividend yield is 3.65%. Looking back five years and taking a sample every week, the average dividend yield has been 2.64%, the lowest has been 1.57%, and the highest has been 4.26%. The standard deviation of yields is 0.78 (n=105).

The current dividend yield is 1.31 standard deviations above the historical average.

Additionally, the company's dividend payout ratio is 0.22. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

Analyst Price Forecast Suggests 10.57% Upside

As of February 12, 2023, the average one-year price target for Regional Management is $36.31. The forecasts range from a low of $31.31 to a high of $43.05. The average price target represents an increase of 10.57% from its latest reported closing price of $32.84.

The projected annual revenue for Regional Management is $577MM, an increase of 16.70%. The projected annual EPS is $5.90, an increase of 7.14%.

What is the Fund Sentiment?

There are 258 funds or institutions reporting positions in Regional Management. This is a decrease of 23 owner(s) or 8.19% in the last quarter. Average portfolio weight of all funds dedicated to RM is 0.13%, an increase of 2.49%. Total shares owned by institutions decreased in the last three months by 2.77% to 8,652K shares. The put/call ratio of RM is 5.03, indicating a bearish outlook.

What are large shareholders doing?

Basswood Capital Management, L.l.c. holds 1,039K shares representing 10.84% ownership of the company. In it's prior filing, the firm reported owning 1,182K shares, representing a decrease of 13.80%. The firm decreased its portfolio allocation in RM by 23.10% over the last quarter.

Forager Capital Management holds 709K shares representing 7.40% ownership of the company. In it's prior filing, the firm reported owning 569K shares, representing an increase of 19.82%. The firm increased its portfolio allocation in RM by 19.67% over the last quarter.

Wellington Management Group Llp holds 672K shares representing 7.01% ownership of the company. In it's prior filing, the firm reported owning 641K shares, representing an increase of 4.67%. The firm decreased its portfolio allocation in RM by 16.76% over the last quarter.

Lsv Asset Management holds 396K shares representing 4.13% ownership of the company. In it's prior filing, the firm reported owning 340K shares, representing an increase of 14.29%. The firm increased its portfolio allocation in RM by 9.67% over the last quarter.

Khrom Capital Management holds 308K shares representing 3.22% ownership of the company. In it's prior filing, the firm reported owning 184K shares, representing an increase of 40.36%. The firm increased its portfolio allocation in RM by 14.88% over the last quarter.

Regional Management Background Information
(This description is provided by the company.)

Regional Management Corp. is a diversified consumer finance company that provides attractive, easy-to-understand installment loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other lenders. Regional Management operates under the name 'Regional Finance' in 368 branch locations across 11 states in the Southeastern, Southwestern, Mid-Atlantic, and Midwestern United States, as of September 30, 2020. Most of its loan products are secured, and each is structured on a fixed rate, fixed term basis with fully amortizing equal monthly installment payments, repayable at any time without penalty. Regional Management sources loans through its multiple channel platform, which includes branches, centrally-managed direct mail campaigns, digital partners, retailers, and its consumer website.

This story originally appeared on Fintel.