In a just published Form 13, filed with the US Securities and Exchange Commission (SEC), Rent-A-Center Inc. (NASDAQ:RCII) reported that Engaged Capital has picked up 2,519,969 of common stock as of 2017-04-17.
The acquisition brings the aggregate amount owned by Engaged Capital to a total of 2,519,969 representing approximately 4.7% stake in the company.
For those not familiar with the company, Rent-A-Center, Inc. is a rent-to-own operator in North America. The Company provides an opportunity to obtain ownership of products, such as consumer electronics, appliances, computers (including tablets), smartphones and furniture (including accessories), under rental purchase agreements. The Company operates in four segments: Core U.S., Acceptance Now, Mexico, and Franchising. As of December 31, 2016, the Company operated over 2,463 Company-owned stores in the United States, Canada and Puerto Rico. The Company’s Mexico segment consists of the Company-owned rent-to-own stores in Mexico. As of December 31, 2016, the Company operated 130 stores in this segment. Its Franchising segment engages in the sale of rental merchandise to its franchisees. As of December 31, 2016, the Company’s Franchising segment franchised 229 stores in 31 states operating under the Rent-A-Center (152 stores), ColorTyme (39 stores) and RimTyme (38 stores) names.
A glance at Rent-A-Center Inc. (NASDAQ:RCII)’s key stats reveals a current market capitalization of 566.51 Million based on 53.09 Million shares outstanding and a price at last close of $10.64 per share.
Looking at insider activity, there are a few transactions worth noting.
Specifically, on 2017-03-23, Engaged picked up 40,000 at a purchase price of $8.82. This brings their total holding to 3,390,148 as of the date of the filing.
On the sell side, the most recent transaction saw Gade unload 9,000 shares at a sale price of $27.39. This brings their total holding to 2,400.
It’s possible to gauge a company’s potential by tracking the activity of its major holders, as well as checking in on insider activity such as those transactions listed above. We’ll be keeping an eye on Rent-A-Center Inc. (NASDAQ:RCII) as things move forward to see if its progress aligns with these transactions.
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