The RMR Group (NASDAQ:RMR) Sets New 12-Month High – Should You Buy?

The RMR Group Inc. (NASDAQ:RMR)’s share price hit a new 52-week high during trading on Thursday . The company traded as high as $19.92 and last traded at $19.62, with a volume of 295573 shares traded. The stock had previously closed at $19.50.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on RMR. B. Riley Financial lowered their price objective on The RMR Group from $24.00 to $21.00 and set a “buy” rating for the company in a research report on Tuesday, March 17th. Weiss Ratings reissued a “hold (c-)” rating on shares of The RMR Group in a research report on Monday. Finally, Zacks Research raised The RMR Group from a “strong sell” rating to a “hold” rating in a research report on Monday, April 13th. Two research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $19.00.

The RMR Group Stock Performance

The company has a 50-day moving average price of $16.56 and a 200-day moving average price of $15.99. The firm has a market capitalization of $648.57 million, a price-to-earnings ratio of 16.72 and a beta of 1.03.

The RMR Group (NASDAQ:RMR) last released its quarterly earnings data on Wednesday, May 6th. The financial services provider reported $0.11 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.14 by ($0.03). The business had revenue of $145.63 million for the quarter, compared to analyst estimates of $171.44 million. The RMR Group had a return on equity of 3.44% and a net margin of 3.23%. On average, research analysts expect that The RMR Group Inc. will post 0.74 earnings per share for the current fiscal year.

The RMR Group Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, May 14th. Stockholders of record on Tuesday, April 21st will be given a dividend of $0.45 per share. This represents a $1.80 annualized dividend and a dividend yield of 8.9%. The ex-dividend date of this dividend is Tuesday, April 21st. The RMR Group’s dividend payout ratio is currently 148.76%.

Institutional Trading of The RMR Group

A number of large investors have recently made changes to their positions in RMR. Nantahala Capital Management LLC boosted its position in shares of The RMR Group by 55.9% in the 2nd quarter. Nantahala Capital Management LLC now owns 1,147,902 shares of the financial services provider’s stock valued at $18,768,000 after purchasing an additional 411,700 shares during the period. Bank of America Corp DE boosted its position in shares of The RMR Group by 435.7% in the 2nd quarter. Bank of America Corp DE now owns 94,663 shares of the financial services provider’s stock valued at $1,548,000 after purchasing an additional 76,991 shares during the period. Federated Hermes Inc. boosted its position in shares of The RMR Group by 12.1% in the 4th quarter. Federated Hermes Inc. now owns 576,628 shares of the financial services provider’s stock valued at $8,592,000 after purchasing an additional 62,307 shares during the period. Jane Street Group LLC acquired a new stake in shares of The RMR Group in the 1st quarter valued at about $988,000. Finally, GSA Capital Partners LLP acquired a new stake in shares of The RMR Group in the 3rd quarter valued at about $801,000. 42.31% of the stock is owned by institutional investors and hedge funds.

About The RMR Group

The RMR Group, Inc (NASDAQ: RMR) is a publicly traded asset management company that specializes in providing comprehensive real estate and investment management services to both public and private entities. Acting as an external manager, RMR offers a range of services encompassing property management, asset management, fund administration, accounting, investor relations and compliance oversight. Its client base includes real estate investment trusts (REITs), real estate operating companies (REOCs), closed-end real estate funds and institutional investors.

Founded in 1986, RMR Group has built a business model centered on recurring fee revenue generated through long-term service agreements with its managed entities.