Stock of the Day

May 11, 2022

FirstCash (FCFS)

$214.47
-$4.74 (-2.2%)
Market Cap: $9.51B

About FirstCash

FirstCash Holdings, Inc, together with its subsidiaries, operates retail pawn stores in the United States, Mexico, and rest of Latin America. The company operates in three segments: U.S. Pawn, Latin America Pawn, and Retail POS Payment Solutions segments. Its pawn stores lend money on the collateral of pledged personal property, including jewelry, electronics, tools, appliances, sporting goods, and musical instruments; and retails merchandise acquired through collateral forfeitures on forfeited pawn loans and over-the-counter purchases of merchandise directly from customers. The company also provides retail POS payment solutions, which focuses on LTO products and facilitating other retail financing payment options across the network of traditional and e-commerce merchant partners. It serves cash and credit-constrained consumers. The company was formerly known as FirstCash, Inc and changed its name to FirstCash Holdings, Inc. in December 2021. FirstCash Holdings, Inc was incorporated in 1988 and is headquartered in Fort Worth, Texas.

Today's Trend

FirstCash Holdings, Inc. (NASDAQ: FCFS) appears to be moving lower as investors react to the market’s broader reassessment of the stock after its post-earnings run-up, even though the latest quarterly report was strong.

  • FirstCash posted record second-quarter results, with EPS of $2.50 beating estimates of $2.39 and revenue of $1.07 billion topping the $1.03 billion consensus. Management also said pawn demand helped drive a 58% increase in GAAP EPS and a 40% increase in adjusted EPS. Article Title
  • The company declared a quarterly dividend of $0.42 per share, signaling continued cash generation and shareholder returns. Article Title
  • FirstCash also authorized a new $150 million share repurchase plan after completing its prior program, which can support earnings per share and investor confidence. Article Title
  • Short-interest data showed no meaningful short position reported, so it does not add a clear new catalyst for the shares.

Investor takeaway: FCFS benefited from a very strong earnings and capital-return update, but the stock has likely been pressured by profit-taking after the news rather than by any fundamental weakness in the quarter.

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