StockNews.com Initiates Coverage on Aaron’s (NYSE:AAN)

StockNews.com began coverage on shares of Aaron’s (NYSE:AAN) in a research report sent to investors on Wednesday. The brokerage issued a hold rating on the stock.

Other equities analysts also recently issued research reports about the company. Loop Capital boosted their target price on Aaron’s from $8.00 to $10.00 and gave the stock a hold rating in a research note on Tuesday, June 18th. Jefferies Financial Group restated a hold rating and issued a $10.10 price objective (down previously from $11.00) on shares of Aaron’s in a research note on Wednesday, July 10th. TD Cowen raised their target price on Aaron’s from $8.00 to $10.10 and gave the company a hold rating in a research report on Monday, June 17th. Finally, Truist Financial boosted their price target on shares of Aaron’s from $8.00 to $10.10 and gave the stock a hold rating in a report on Tuesday, June 18th. Seven research analysts have rated the stock with a hold rating and one has given a buy rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of Hold and a consensus price target of $9.46.

Aaron’s Price Performance

Shares of NYSE:AAN opened at $10.09 on Wednesday. The company has a current ratio of 1.02, a quick ratio of 0.70 and a debt-to-equity ratio of 0.33. The stock has a market cap of $318.06 million, a PE ratio of -12.77 and a beta of 1.43. The stock’s fifty day simple moving average is $10.05 and its two-hundred day simple moving average is $8.95. Aaron’s has a 1-year low of $6.62 and a 1-year high of $11.90.

Aaron’s (NYSE:AAN) last announced its earnings results on Monday, August 5th. The company reported ($0.07) EPS for the quarter, missing the consensus estimate of $0.03 by ($0.10). Aaron’s had a negative net margin of 2.06% and a negative return on equity of 2.08%. The firm had revenue of $503.10 million during the quarter, compared to analysts’ expectations of $513.91 million. During the same quarter in the prior year, the company earned $0.39 EPS. The business’s revenue for the quarter was down 5.1% on a year-over-year basis. As a group, analysts forecast that Aaron’s will post -0.01 EPS for the current fiscal year.

Aaron’s Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 3rd. Investors of record on Friday, September 13th were issued a $0.125 dividend. This represents a $0.50 annualized dividend and a yield of 4.96%. The ex-dividend date of this dividend was Friday, September 13th. Aaron’s’s dividend payout ratio (DPR) is currently -63.29%.

Institutional Investors Weigh In On Aaron’s

Several institutional investors have recently added to or reduced their stakes in the business. Water Island Capital LLC purchased a new position in shares of Aaron’s in the second quarter worth about $9,711,000. Alpine Associates Management Inc. bought a new position in Aaron’s in the 2nd quarter worth approximately $8,379,000. Acadian Asset Management LLC grew its stake in Aaron’s by 25.5% in the 1st quarter. Acadian Asset Management LLC now owns 807,933 shares of the company’s stock valued at $6,056,000 after buying an additional 164,392 shares in the last quarter. American Century Companies Inc. raised its holdings in Aaron’s by 12.1% during the 2nd quarter. American Century Companies Inc. now owns 759,972 shares of the company’s stock valued at $7,585,000 after acquiring an additional 81,910 shares during the period. Finally, Trium Capital LLP purchased a new stake in shares of Aaron’s during the third quarter worth $4,028,000. 91.99% of the stock is owned by hedge funds and other institutional investors.

About Aaron’s

Headquartered in Atlanta, The Aaron’s Company, Inc (NYSE: AAN) is a leading, technology-enabled, omnichannel provider of lease-purchase solutions. Aaron’s engages in direct-to-consumer sales and lease ownership of furniture, appliances, consumer electronics and accessories through its approximately 1,300 company-operated and franchised stores in 47 states and Canada, as well as its e-commerce platform, Aarons.com.