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Regional Management Corp. (RM - Free Report) announced the launch of a stock repurchase program. It has also outlined growth expectations for 2025.
Details of RM’s Share Repurchase Program
The company’s board of directors authorized a stock repurchase program for its outstanding common stock worth up to $30 million. The authorization is effective immediately and will continue through Dec. 31, 2026.
The timing and volume of the repurchases under the stock buyback program will depend on various factors, including market conditions, legal requirements and share price. The program may be modified, suspended or discontinued at any time without prior notice. The buybacks may occur in the open market through privately negotiated transactions or other methods in compliance with federal securities laws.
The repurchase program is part of the company's strategy to manage its capital and enhance shareholders return. According to Robert W. Beck, president and chief executive officer of Regional Management, the buyback plan reflects the company’s consistently strong performance, liquidity profile and capital position, and confidence in prospects.
Regional Management’s strong liquidity position will support its capital distribution activities. As of Sept. 30, 2024, the company had net finance receivables of $1.8 billion and debt of $1.4 billion.
Some other finance stocks also announced share repurchase plans. In November 2024, Trinity Capital Inc.’s (TRIN - Free Report) board of directors authorized a share buyback plan worth $30 million. The program is set to expire earlier of either Nov. 7, 2025, or after the full utilization of the authorization. Given a robust liquidity position and decent earnings strength, TRIN is expected to continue with efficient capital distribution activities.
In the same month, Comerica Incorporated’s (CMA - Free Report) board approved an additional repurchase authorization of up to 10 million shares of its outstanding common stock with no expiration date. This authorization is in addition to the 5 million shares available as of Sept. 30, 2024, under the prior repurchase program. In the fourth quarter of 2024, CMA plans to repurchase $100 million in shares.
RM’s Dividend Distribution Activities
Regional Management has a dividend-paying history. For the fourth quarter of 2024, the company announced a dividend of 30 cents per share, which will be paid out on Dec. 11 to shareholders of record as of Nov. 21, 2024.
Over the last five years, the company increased its quarterly dividend twice, with annualized dividend growth of 10.05%.
Based on Monday’s closing price of $30.97, RM has a dividend yield of 3.88%.
In addition to the share repurchase plan, Regional Management provided its 2025 growth expectations.
The company will allocate capital in 2025 to accelerate its portfolio growth. RM expects its ending net receivables to grow 10-12% in 2025, suggesting an acceleration from a growth rate of roughly 6% in 2024. This growth acceleration is accredited to RM's optimistic credit performance and favorable macroeconomic conditions, such as lower inflation and low unemployment rates.
Regional Management has expanded to eight states since 2020, growing its addressable market by more than 80% over that period. The company expects continued expansions, emphasizing auto-secured and higher-margin small loan portfolios, which are likely to drive 2024 portfolio growth.
In addition, the company is set to open 10 branches in the fourth quarter of 2024 and the first quarter of 2025, with plans to open 10 more in the second half of 2025.
Through these branch development initiatives, Regional Management is pushing aggressively to capture market share in its newer geographies, which will contribute meaningfully to portfolio and revenue growth in 2025 and beyond.
RM's Zacks Rank and Price Performance
Over the past six months, shares of RM have gained 11% compared with the industry’s 37.1% growth.
Image: Bigstock
Regional Management Announces $30M Stock Buyback Plan, '25 Growth View
Regional Management Corp. (RM - Free Report) announced the launch of a stock repurchase program. It has also outlined growth expectations for 2025.
Details of RM’s Share Repurchase Program
The company’s board of directors authorized a stock repurchase program for its outstanding common stock worth up to $30 million. The authorization is effective immediately and will continue through Dec. 31, 2026.
The timing and volume of the repurchases under the stock buyback program will depend on various factors, including market conditions, legal requirements and share price. The program may be modified, suspended or discontinued at any time without prior notice. The buybacks may occur in the open market through privately negotiated transactions or other methods in compliance with federal securities laws.
The repurchase program is part of the company's strategy to manage its capital and enhance shareholders return. According to Robert W. Beck, president and chief executive officer of Regional Management, the buyback plan reflects the company’s consistently strong performance, liquidity profile and capital position, and confidence in prospects.
Regional Management’s strong liquidity position will support its capital distribution activities. As of Sept. 30, 2024, the company had net finance receivables of $1.8 billion and debt of $1.4 billion.
Some other finance stocks also announced share repurchase plans. In November 2024, Trinity Capital Inc.’s (TRIN - Free Report) board of directors authorized a share buyback plan worth $30 million. The program is set to expire earlier of either Nov. 7, 2025, or after the full utilization of the authorization. Given a robust liquidity position and decent earnings strength, TRIN is expected to continue with efficient capital distribution activities.
In the same month, Comerica Incorporated’s (CMA - Free Report) board approved an additional repurchase authorization of up to 10 million shares of its outstanding common stock with no expiration date. This authorization is in addition to the 5 million shares available as of Sept. 30, 2024, under the prior repurchase program. In the fourth quarter of 2024, CMA plans to repurchase $100 million in shares.
RM’s Dividend Distribution Activities
Regional Management has a dividend-paying history. For the fourth quarter of 2024, the company announced a dividend of 30 cents per share, which will be paid out on Dec. 11 to shareholders of record as of Nov. 21, 2024.
Over the last five years, the company increased its quarterly dividend twice, with annualized dividend growth of 10.05%.
Based on Monday’s closing price of $30.97, RM has a dividend yield of 3.88%.
Regional Management Corp. Dividend Yield (TTM)
Regional Management Corp. dividend-yield-ttm | Regional Management Corp. Quote
RM’s 2025 Growth Outlook
In addition to the share repurchase plan, Regional Management provided its 2025 growth expectations.
The company will allocate capital in 2025 to accelerate its portfolio growth. RM expects its ending net receivables to grow 10-12% in 2025, suggesting an acceleration from a growth rate of roughly 6% in 2024. This growth acceleration is accredited to RM's optimistic credit performance and favorable macroeconomic conditions, such as lower inflation and low unemployment rates.
Regional Management has expanded to eight states since 2020, growing its addressable market by more than 80% over that period. The company expects continued expansions, emphasizing auto-secured and higher-margin small loan portfolios, which are likely to drive 2024 portfolio growth.
In addition, the company is set to open 10 branches in the fourth quarter of 2024 and the first quarter of 2025, with plans to open 10 more in the second half of 2025.
Through these branch development initiatives, Regional Management is pushing aggressively to capture market share in its newer geographies, which will contribute meaningfully to portfolio and revenue growth in 2025 and beyond.
RM's Zacks Rank and Price Performance
Over the past six months, shares of RM have gained 11% compared with the industry’s 37.1% growth.
Currently, Regional Management carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here