Aaron’s (AAN) Upgraded at Zacks Investment Research
Aaron’s (NYSE:AAN) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Wednesday. The brokerage presently has a $60.00 target price on the stock. Zacks Investment Research‘s price target would suggest a potential upside of 9.65% from the stock’s current price.
According to Zacks, “Aaron’s shares have outperformed the industry in the past three months driven by a robust surprise trend, which continued in second-quarter 2018 as well. The company has delivered positive earnings surprise in seven of the last nine quarters and sales beat in the trailing six quarters. Also, it continues to gain from significant growth at the Progressive segment and notable improvement in the Aaron’s Business division. Improvements in average ticket size, customer retention rates and collections aided the company’s second-quarter results. Further, management reiterated its guidance for 2018. Recently, the company bought 90 Aaron's-branded franchised stores, which are expected to strengthen the company’s omnichannel capabilities. However, Aaron’s is witnessing lower comps at company-operated stores since last few quarters. In 2018, the company expects comps at the favorable end of negative 4% to negative 1% range.”
A number of other brokerages have also recently weighed in on AAN. ValuEngine upgraded Aaron’s from a “hold” rating to a “buy” rating in a report on Friday, September 7th. KeyCorp lifted their target price on Aaron’s from $58.00 to $62.00 and gave the company an “overweight” rating in a report on Thursday, September 20th. Raymond James reiterated a “buy” rating and issued a $57.00 target price on shares of Aaron’s in a report on Sunday, August 12th. Northcoast Research reiterated a “buy” rating on shares of Aaron’s in a report on Tuesday, July 24th. Finally, Stifel Nicolaus lifted their target price on Aaron’s from $53.00 to $58.00 and gave the company a “buy” rating in a report on Friday, July 27th. Two analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company. The stock currently has a consensus rating of “Buy” and a consensus price target of $54.82.
Aaron’s (NYSE:AAN) last issued its earnings results on Thursday, July 26th. The company reported $0.84 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.76 by $0.08. Aaron’s had a return on equity of 11.54% and a net margin of 8.14%. The firm had revenue of $927.90 million for the quarter, compared to analysts’ expectations of $924.86 million. During the same quarter last year, the firm earned $0.68 earnings per share. The firm’s revenue for the quarter was up 13.8% compared to the same quarter last year. sell-side analysts predict that Aaron’s will post 3.41 EPS for the current year.
In other Aaron’s news, CEO John W. Robinson sold 2,500 shares of the business’s stock in a transaction dated Thursday, August 2nd. The stock was sold at an average price of $45.00, for a total transaction of $112,500.00. Following the transaction, the chief executive officer now owns 365,715 shares in the company, valued at $16,457,175. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Ray M. Robinson sold 3,000 shares of the business’s stock in a transaction dated Friday, August 17th. The stock was sold at an average price of $49.19, for a total value of $147,570.00. Following the transaction, the director now owns 26,936 shares in the company, valued at approximately $1,324,981.84. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 55,404 shares of company stock worth $2,664,743. 2.28% of the stock is currently owned by insiders.
Several institutional investors and hedge funds have recently modified their holdings of AAN. Wedge Capital Management L L P NC lifted its stake in shares of Aaron’s by 88.2% during the second quarter. Wedge Capital Management L L P NC now owns 2,601,402 shares of the company’s stock worth $113,031,000 after purchasing an additional 1,219,143 shares in the last quarter. Vaughan Nelson Investment Management L.P. purchased a new stake in shares of Aaron’s during the second quarter worth about $28,126,000. Nuveen Asset Management LLC increased its position in shares of Aaron’s by 107.4% during the first quarter. Nuveen Asset Management LLC now owns 1,097,198 shares of the company’s stock worth $51,129,000 after acquiring an additional 568,252 shares during the last quarter. BlackRock Inc. increased its position in shares of Aaron’s by 6.7% during the second quarter. BlackRock Inc. now owns 7,434,486 shares of the company’s stock worth $323,026,000 after acquiring an additional 469,427 shares during the last quarter. Finally, Wells Fargo & Company MN increased its position in shares of Aaron’s by 117.4% during the second quarter. Wells Fargo & Company MN now owns 850,585 shares of the company’s stock worth $36,959,000 after acquiring an additional 459,401 shares during the last quarter.
Aaron’s Company Profile
Aaron's, Inc operates as an omnichannel provider of lease-purchase solutions. It operates through three segments: Progressive Leasing, Aaron's Business, and DAMI. The company engages in the sale, lease ownership, and specialty retailing of furniture, consumer electronics, home appliances, and accessories.
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