FORT WORTH, TX—FirstCash (NASDAQ:FCFS) Holdings, Inc. (NASDAQ:FCFS) recently reported that R. Douglas Orr, the company's Executive Vice President and Chief Financial Officer, sold a total of 6,000 shares of common stock on November 5, 2024. The shares were sold at a price of $105.68 each, amounting to a total transaction value of $634,080.
These sales were executed under a 10b5-1 Preset Diversification Program established on August 22, 2023. This program allows Orr, along with a family limited partnership and a spousal trust, to sell up to 42,000 shares of FirstCash Holdings, Inc. common stock, subject to certain minimum price thresholds.
Following the transactions, Orr directly owns 88,715 shares, while the family limited partnership and the spousal trust hold 45,234 and 40,728 shares, respectively.
In other recent news, FirstCash Holdings has shown impressive growth in its recent operating results, recording record revenue and earnings. The company reported a 6% increase in gross revenues for the third quarter, amounting to $837 million, and a 13% increase in net income compared to the prior-year quarter. The company also declared a quarterly cash dividend of $0.38 per share.
Recent developments include the opening of 16 new pawn stores in the third quarter, contributing to a total of 83 store openings and acquisitions during the year. Analysts from Loop Capital and TD Cowen have maintained a Buy rating on the company's stock, while BTIG initiated coverage with a Neutral rating.
The company's Latin America pawn segment and American First Finance both experienced growth, with the latter seeing a 14% increase in third-quarter gross origination volumes. FirstCash's outlook for the remainder of 2024 remains highly positive, expecting continued growth in consolidated revenue and earnings. These developments highlight the company's recent performance and future expectations.
InvestingPro Insights
FirstCash Holdings, Inc. (NASDAQ:FCFS) has demonstrated a strong commitment to shareholder returns, as evidenced by its dividend history. According to InvestingPro Tips, the company has raised its dividend for 9 consecutive years and maintained dividend payments for the same period. This consistent dividend growth, coupled with a current dividend yield of 1.42%, may be attractive to income-focused investors.
The company's financial health appears robust, with InvestingPro Data showing a market capitalization of $4.78 billion and revenue of $3.36 billion over the last twelve months as of Q3 2023. FirstCash has also exhibited solid profitability, with a gross profit margin of 61.14% and an operating income margin of 13.37% during the same period.
Despite the recent insider sale by CFO R. Douglas Orr, analysts remain optimistic about FirstCash's prospects. InvestingPro Tips reveal that 3 analysts have revised their earnings upwards for the upcoming period, and the company is expected to be profitable this year. This positive outlook is further supported by the company's revenue growth of 10.1% over the last twelve months.
It's worth noting that FirstCash is trading at a P/E ratio of 19.59, which InvestingPro Tips suggest is high relative to its near-term earnings growth. Investors considering the stock may want to factor this valuation into their decision-making process.
For readers interested in a more comprehensive analysis, InvestingPro offers 6 additional tips for FirstCash Holdings, Inc., providing a deeper insight into the company's financial position and market performance.
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