The RMR Group (NASDAQ:RMR) Trading 6.1% Higher After Strong Earnings

The RMR Group Inc. (NASDAQ:RMR)’s share price shot up 6.1% on Thursday following a stronger than expected earnings report. The company traded as high as $16.59 and last traded at $16.6280. 93,314 shares traded hands during mid-day trading, a decline of 58% from the average session volume of 220,026 shares. The stock had previously closed at $15.67.

The financial services provider reported $0.20 EPS for the quarter, beating analysts’ consensus estimates of $0.18 by $0.02. The RMR Group had a return on equity of 4.60% and a net margin of 2.48%.The business had revenue of $180.42 million during the quarter, compared to the consensus estimate of $214.10 million.

The RMR Group Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, February 19th. Investors of record on Monday, January 26th will be paid a dividend of $0.45 per share. The ex-dividend date of this dividend is Monday, January 26th. This represents a $1.80 annualized dividend and a yield of 10.8%. The RMR Group’s dividend payout ratio (DPR) is presently 171.43%.

Wall Street Analysts Forecast Growth

RMR has been the subject of several recent analyst reports. Wall Street Zen raised shares of The RMR Group from a “sell” rating to a “hold” rating in a research note on Monday, December 22nd. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of The RMR Group in a research note on Monday, December 29th. LADENBURG THALM/SH SH started coverage on The RMR Group in a report on Wednesday, January 7th. They set a “buy” rating and a $17.00 target price on the stock. Finally, Zacks Research upgraded The RMR Group from a “strong sell” rating to a “hold” rating in a report on Monday, January 19th. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $20.50.

Insider Transactions at The RMR Group

In other news, major shareholder Tremont Realty Capital Llc purchased 2,015,748 shares of the company’s stock in a transaction on Thursday, December 11th. The shares were purchased at an average price of $8.65 per share, with a total value of $17,436,220.20. Following the purchase, the insider directly owned 4,577,835 shares of the company’s stock, valued at $39,598,272.75. This trade represents a 78.68% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Company insiders own 54.69% of the company’s stock.

Institutional Investors Weigh In On The RMR Group

A number of hedge funds and other institutional investors have recently bought and sold shares of RMR. State of Alaska Department of Revenue acquired a new position in The RMR Group during the 4th quarter worth approximately $41,000. Harbor Capital Advisors Inc. boosted its holdings in The RMR Group by 11.2% during the fourth quarter. Harbor Capital Advisors Inc. now owns 13,337 shares of the financial services provider’s stock worth $199,000 after purchasing an additional 1,345 shares during the last quarter. CWA Asset Management Group LLC grew its position in The RMR Group by 17.2% in the fourth quarter. CWA Asset Management Group LLC now owns 71,296 shares of the financial services provider’s stock valued at $1,062,000 after purchasing an additional 10,439 shares in the last quarter. Commons Capital LLC increased its stake in The RMR Group by 7.8% in the 4th quarter. Commons Capital LLC now owns 69,311 shares of the financial services provider’s stock valued at $1,033,000 after buying an additional 5,000 shares during the last quarter. Finally, JPMorgan Chase & Co. increased its stake in The RMR Group by 34.0% in the 3rd quarter. JPMorgan Chase & Co. now owns 40,514 shares of the financial services provider’s stock valued at $637,000 after buying an additional 10,278 shares during the last quarter. Institutional investors and hedge funds own 42.31% of the company’s stock.

The RMR Group Stock Up 5.9%

The firm’s 50-day simple moving average is $15.56 and its 200 day simple moving average is $15.81. The company has a debt-to-equity ratio of 0.05, a quick ratio of 0.25 and a current ratio of 0.25. The stock has a market capitalization of $531.89 million, a P/E ratio of 15.80 and a beta of 0.96.

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.