The RMR Group (NASDAQ:RMR) Stock Price Crosses Below Fifty Day Moving Average - Should You Sell?

Key Points

• The RMR Group shares fell below their 50-day moving average, trading as low as $20.00 before closing near $20.35. The stock’s consensus analyst rating remains “Moderate Buy,” although the $19.00 target price is below the current price.
• The company missed quarterly expectations, reporting $0.11 EPS versus $0.14 expected and revenue of $145.63 million compared with estimates of $171.44 million.
• RMR declared a quarterly dividend of $0.45 per share, equating to an annualized $1.80 payout and an approximately 8.8% yield; however, its payout ratio is elevated at 148.76%.

Shares of The RMR Group Inc. (NASDAQ:RMR - Get Free Report) passed below its fifty day moving average during trading on Monday . The stock has a fifty day moving average of $20.36 and traded as low as $20.00. The RMR Group shares last traded at $20.35, with a volume of 121,216 shares.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on the company. Zacks Research upgraded The RMR Group from a "strong sell" rating to a "hold" rating in a research report on Monday, April 13th. Weiss Ratings upgraded shares of The RMR Group from a "hold (c-)" rating to a "hold (c)" rating in a research report on Monday, May 18th. Two equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $19.00.

The RMR Group Stock Performance

The firm has a market cap of $653.03 million, a price-to-earnings ratio of 16.82 and a beta of 1.05. The business has a fifty day moving average of $20.36 and a two-hundred day moving average of $17.99.

The RMR Group (NASDAQ:RMR - Get Free Report) last issued its quarterly earnings data on Wednesday, May 6th. The financial services provider reported $0.11 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.14 by ($0.03). The firm had revenue of $145.63 million for the quarter, compared to analyst estimates of $171.44 million. The RMR Group had a return on equity of 3.44% and a net margin of 3.23%. On average, equities research analysts forecast that The RMR Group Inc. will post 0.69 earnings per share for the current year.

The RMR Group Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, August 13th. Stockholders of record on Monday, July 20th will be paid a dividend of $0.45 per share. This represents a $1.80 annualized dividend and a dividend yield of 8.8%. The ex-dividend date of this dividend is Monday, July 20th. The RMR Group's payout ratio is 148.76%.

Hedge Funds Weigh In On The RMR Group

Hedge funds have recently added to or reduced their stakes in the business. Nantahala Capital Management LLC raised its position in shares of The RMR Group by 55.9% during the 2nd quarter. Nantahala Capital Management LLC now owns 1,147,902 shares of the financial services provider's stock worth $18,768,000 after purchasing an additional 411,700 shares during the last quarter. Bank of America Corp DE lifted its position in shares of The RMR Group by 76.1% in the first quarter. Bank of America Corp DE now owns 941,252 shares of the financial services provider's stock valued at $14,561,000 after acquiring an additional 406,888 shares in the last quarter. Federated Hermes Inc. lifted its position in shares of The RMR Group by 12.1% in the fourth quarter. Federated Hermes Inc. now owns 576,628 shares of the financial services provider's stock valued at $8,592,000 after acquiring an additional 62,307 shares in the last quarter. Jane Street Group LLC acquired a new stake in shares of The RMR Group during the first quarter valued at $988,000. Finally, Jefferies Financial Group Inc. acquired a new stake in shares of The RMR Group during the fourth quarter valued at $671,000. 42.31% of the stock is currently owned by hedge funds and other institutional investors.

The RMR Group Company Profile

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.

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