Regional Management (NYSE:RM) Posts Earnings Results, Beats Estimates By $0.04 EPS

Regional Management (NYSE:RM) issued its quarterly earnings data on Wednesday. The credit services provider reported $0.85 earnings per share for the quarter, beating analysts’ consensus estimates of $0.81 by $0.04, FiscalAI reports. Regional Management had a return on equity of 13.16% and a net margin of 7.40%.The business had revenue of $168.01 million for the quarter, compared to the consensus estimate of $165.69 million.

Here are the key takeaways from Regional Management’s conference call:

• Second-quarter earnings increased: Net income rose 14% year to date and diluted EPS rose 17% year over year in the first half, while second-quarter revenue increased 7% to $168 million. Operating efficiency also improved, with the expense ratio down 80 basis points to 12.4%.
• Growth fell short of expectations amid weaker direct-mail response rates, increased fintech competition and tighter underwriting in higher-risk segments. Management lowered full-year portfolio growth guidance to 5%–7% and EPS growth guidance to 10%–13%.
• Credit performance was somewhat weaker than planned, with a 12.2% net credit loss rate, up 30 basis points year over year, and 30-plus-day delinquencies of 7%. Management cited possible fraud or first-party abuse in certain segments, while also monitoring inflation and elevated fuel prices.
• The Column bank partnership is scaling faster than planned, with more than $65 million of originations and roughly 28% of total originations on a run-rate basis. Management expects the model to improve like-for-like pre-tax margins by at least 200 basis points and plans to transition nearly all states by the end of 2027.
• Regional Management is investing in longer-term growth through end-to-end digital lending, enhanced fraud controls and machine-learning underwriting, AI-enabled operations, new branch technology and expansion into Florida, its 20th state. Management expects credit losses to improve and quarterly earnings to strengthen in the second half of 2026.

Regional Management Price Performance

RM stock traded down $0.32 during trading on Wednesday, hitting $42.26. 54,556 shares of the stock traded hands, compared to its average volume of 71,846. The stock has a market cap of $389.19 million, a price-to-earnings ratio of 8.57 and a beta of 1.01. Regional Management has a one year low of $30.46 and a one year high of $46.00. The company has a current ratio of 59.88, a quick ratio of 59.88 and a debt-to-equity ratio of 4.30. The company has a 50 day simple moving average of $39.10 and a 200 day simple moving average of $36.55.

Insider Buying and Selling

In other Regional Management news, CAO Steven B. Barnette sold 3,274 shares of the business’s stock in a transaction on Friday, July 10th. The stock was sold at an average price of $43.30, for a total value of $141,764.20. Following the transaction, the chief accounting officer owned 13,472 shares of the company’s stock, valued at approximately $583,337.60. The trade was a 19.55% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, SVP Catherine R. Atwood sold 3,000 shares of the company’s stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $35.06, for a total transaction of $105,180.00. Following the transaction, the senior vice president owned 40,942 shares in the company, valued at approximately $1,435,426.52. This trade represents a 6.83% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 8,874 shares of company stock worth $350,208 in the last three months. Insiders own 10.90% of the company’s stock.

Hedge Funds Weigh In On Regional Management

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Hsbc Holdings PLC acquired a new stake in Regional Management in the fourth quarter worth $248,000. Empowered Funds LLC increased its position in shares of Regional Management by 10.5% in the 4th quarter. Empowered Funds LLC now owns 55,344 shares of the credit services provider’s stock valued at $2,145,000 after buying an additional 5,267 shares in the last quarter. Wellington Management Group LLP increased its position in shares of Regional Management by 9.9% in the 4th quarter. Wellington Management Group LLP now owns 218,164 shares of the credit services provider’s stock valued at $8,454,000 after buying an additional 19,600 shares in the last quarter. Bridgeway Capital Management LLC raised its stake in Regional Management by 4.9% during the 4th quarter. Bridgeway Capital Management LLC now owns 111,844 shares of the credit services provider’s stock worth $4,334,000 after buying an additional 5,267 shares during the period. Finally, AQR Capital Management LLC raised its stake in Regional Management by 65.0% during the 4th quarter. AQR Capital Management LLC now owns 40,324 shares of the credit services provider’s stock worth $1,563,000 after buying an additional 15,878 shares during the period. Institutional investors own 98.89% of the company’s stock.

Analyst Ratings Changes

RM has been the topic of several recent analyst reports. Wall Street Zen raised Regional Management from a “buy” rating to a “strong-buy” rating in a research report on Sunday, July 12th. Citizens Jmp upgraded shares of Regional Management from a “market perform” rating to an “outperform” rating and set a $45.00 price objective on the stock in a research note on Thursday, May 21st. Citigroup restated a “market outperform” rating on shares of Regional Management in a report on Wednesday, June 17th. Finally, Weiss Ratings raised shares of Regional Management from a “hold (c)” rating to a “hold (c+)” rating in a research report on Friday, June 26th. Two analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $45.00.

Regional Management Company Profile

Regional Management Corp., headquartered in Wilmington, North Carolina, is a consumer finance company specializing in installment loan products for underbanked individuals. Since its founding in 1977, the company has developed a network of field-based branches alongside a digital platform to offer credit solutions in rural and small-town markets across the United States.

The company’s core offerings include consumer installment loans for everyday purchases, auto refinancing and lease buyouts, as well as ancillary services such as insurance referrals.