FirstCash (NASDAQ:FCFS) Stock Falls 11% – Time to Sell?

Shares of FirstCash Holdings, Inc. (NASDAQ:FCFS) dropped 11% during mid-day trading on Thursday. The stock traded as low as $194.34 and last traded at $192.9610. Approximately 85,657 shares were traded during trading, a decline of 77% from the average daily volume of 374,353 shares. The stock had previously closed at $216.75.

Wall Street Analyst Weigh In

FCFS has been the subject of a number of analyst reports. TD Cowen upped their target price on FirstCash from $240.00 to $242.00 and gave the stock a “buy” rating in a report on Tuesday, October 6th. Stephens reissued an “overweight” rating and issued a $250.00 price target on shares of FirstCash in a research report on Thursday, October 1st. Loop Capital upgraded FirstCash from a “hold” rating to a “buy” rating and set a $255.00 price objective for the company in a research note on Monday, August 10th. Weiss Ratings raised FirstCash from a “buy (b)” rating to a “buy (b+)” rating in a research report on Thursday, October 8th. Finally, Canaccord Genuity Group raised their price objective on FirstCash from $252.00 to $265.00 and gave the company a “buy” rating in a research report on Thursday, October 15th. Five equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $253.00.

FirstCash Price Performance

The company has a market cap of $8.01 billion, a PE ratio of 21.09 and a beta of 0.55. The company has a debt-to-equity ratio of 1.01, a current ratio of 4.89 and a quick ratio of 3.51. The stock’s 50-day moving average is $217.83 and its 200 day moving average is $216.41.

FirstCash (NASDAQ:FCFS) last released its quarterly earnings results on Thursday, October 22nd. The company reported $2.68 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.63 by $0.05. The business had revenue of $1.10 billion for the quarter, compared to analyst estimates of $1.07 billion. FirstCash had a net margin of 9.42% and a return on equity of 19.65%. The business’s revenue for the quarter was up 17.7% on a year-over-year basis. During the same period in the previous year, the company earned $1.86 earnings per share. On average, equities analysts anticipate that FirstCash Holdings, Inc. will post 11.59 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director James H. Graves sold 3,750 shares of the company’s stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $221.20, for a total transaction of $829,500.00. Following the transaction, the director directly owned 11,929 shares of the company’s stock, valued at $2,638,694.80. This represents a 23.92% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, insider Howard F. Hambleton sold 2,000 shares of the stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $212.98, for a total value of $425,960.00. Following the completion of the sale, the insider owned 30,406 shares of the company’s stock, valued at approximately $6,475,869.88. This trade represents a 6.17% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 14,098 shares of company stock worth $3,051,281 over the last quarter. Company insiders own 2.86% of the company’s stock.

Institutional Investors Weigh In On FirstCash

Several institutional investors have recently added to or reduced their stakes in FCFS. Harbor Investment Advisory LLC acquired a new stake in FirstCash in the 1st quarter worth approximately $26,000. Geneos Wealth Management Inc. purchased a new position in shares of FirstCash in the first quarter worth $29,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in shares of FirstCash during the second quarter worth $34,000. Assetmark Inc. lifted its stake in shares of FirstCash by 113.2% during the first quarter. Assetmark Inc. now owns 194 shares of the company’s stock worth $36,000 after buying an additional 103 shares during the period. Finally, USA Financial Formulas acquired a new stake in shares of FirstCash during the third quarter worth $50,000. Institutional investors and hedge funds own 80.30% of the company’s stock.

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.