Charles Schwab Increases Stake in FirstCash Holdings, Inc.

Charles Schwab Investment Management Inc. has raised its investment in FirstCash Holdings, Inc. (NASDAQ:FCFS) by 8.2% in the third quarter according to a recent report filed with the Securities and Exchange Commission (SEC). Following the acquisition of 37,810 additional shares, the investment firm now holds a total of 498,260 shares of FirstCash. This stake is valued at approximately $57.2 million, representing around 1.11% ownership in the company.

Additionally, various other institutional investors have begun to buy and sell shares in FirstCash. Notably, Lazard Asset Management LLC boosted its stake by 220.3% in the first quarter and currently owns 977 shares, valued at about $124,000 after a purchase of 672 additional shares. Similarly, Price T. Rowe Associates Inc. MD increased its stake by 6.8%, owning now 21,561 shares valued at $2.75 million, following an acquisition of 1,367 shares. Atria Investments Inc. entered a new position in FirstCash valued at $1.19 million during the same quarter. Also, Burney Co. raised its investment by 6.9%, bringing its holdings to 4,846 shares valued at $618,000. Meanwhile, Boston Partners augmented its stake by 17.8% with a total holding of 621,534 shares worth nearly $78.35 million. Currently, institutional and hedge funds collectively own 80.3% of FirstCash's stock.

Insider Transactions

In related news, R Douglas Orr, the Chief Financial Officer of FirstCash, sold 2,000 shares on November 5th. The shares were sold at an average price of $105.68, resulting in a transaction worth $211,360. Orr now owns 88,715 shares valued at around $9.38 million, which represents a 2.2% decrease in their holdings. This transaction was reported to the SEC. Furthermore, director Douglas Richard Rippel sold 3,374 shares on September 9th at an average price of $119.94, totaling $404,678. Following this sale, Rippel holds 4,731,869 shares valued at approximately $567.54 million, marking a 0.07% reduction in his ownership. In the last 90 days, insiders have sold 5,974 shares valued at $688,080, and corporate insiders currently own 14.77% of the total stock.

Analyst Insights

Research analysts have shared their views on FirstCash. TD Cowen recently lowered its price target from $134 to $130 but maintained a “buy” rating for the stock in a note issued on October 28th. Furthermore, Stephens initiated coverage on FirstCash on November 13th, recommending an “overweight” rating with a target price of $137.

Market Performance

Current Stock Performance

On the market, FirstCash shares opened at $108.86. The company holds a market capitalization of $4.87 billion and has a price-to-earnings ratio of 20.16, with a beta of 0.64. Its 50-day and 200-day simple moving averages are $109.79 and $111.92, respectively. FirstCash's quick ratio stands at 3.23, while its current ratio is 4.31, with a debt-to-equity ratio of 0.87. The stock has fluctuated between a low of $101.62 and a high of $133.64 over the past year.

In the latest earnings results issued on October 24th, FirstCash reported earnings per share (EPS) of $1.67, exceeding analysts' expectations of $1.62 by $0.05. The company achieved revenue of $837.3 million for the quarter, which was slightly below the anticipated $843.94 million. FirstCash recorded a net margin of 7.29% with a return on equity of 14.97%. Its quarterly revenue reflected a 6.5% increase compared to the same quarter last year, where the previous year's EPS was $1.56. Analysts predict that FirstCash will report an EPS of 6.61 for the current year.

Dividend Announcement

Recently, FirstCash declared a quarterly dividend that was distributed on November 27th. Shareholders on record as of November 15th received a dividend of $0.38 per share, translating to an annualized dividend amount of $1.52, which results in a yield of 1.40%. The ex-dividend date for this payment was also November 15th. The company's dividend payout ratio currently stands at 28.15%.

About FirstCash Holdings, Inc.

FirstCash Holdings, Inc. operates retail pawn stores across the United States, Mexico, and various Latin American countries. The firm is segmented into three divisions: U.S. Pawn, Latin America Pawn, and Retail POS Payment Solutions. The pawn stores provide loans secured by personal property, including jewelry, electronics, and tools, while also retailing merchandise acquired from forfeited pawn loans.

Looking Ahead

Understanding FirstCash and its market presence provides insight into the operations of retail lending solutions and pawn services, essential segments in the financial landscape.

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