Beyond The Numbers: 4 Analysts Discuss Aarons Stock
Ratings for Aarons (NYSE:AAN) were provided by 4 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.
The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 0 | 4 | 0 | 0 |
| Last 30D | 0 | 0 | 2 | 0 | 0 |
| 1M Ago | 0 | 0 | 1 | 0 | 0 |
| 2M Ago | 0 | 0 | 1 | 0 | 0 |
| 3M Ago | 0 | 0 | 0 | 0 | 0 |
Insights from analysts' 12-month price targets are revealed, presenting an average target of $9.55, a high estimate of $10.10, and a low estimate of $8.00. Surpassing the previous average price target of $8.25, the current average has increased by 15.76%.
Diving into Analyst Ratings: An In-Depth Exploration
In examining recent analyst actions, we gain insights into how financial experts perceive Aarons. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Anthony Chukumba | Loop Capital | Raises | Hold | $10.00 | $8.00 |
| Scot Ciccarelli | Truist Securities | Raises | Hold | $10.10 | $8.00 |
| Hoang Nguyen | TD Cowen | Raises | Hold | $10.10 | $8.00 |
| Scot Ciccarelli | Truist Securities | Lowers | Hold | $8.00 | $9.00 |
Key Insights:
- Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Aarons. This insight gives a snapshot of analysts' perspectives on the current state of the company.
- Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Aarons compared to the broader market.
- Price Targets: Understanding forecasts, analysts offer estimates for Aarons's future value. Examining the current and prior targets provides insight into analysts' changing expectations.
Capture valuable insights into Aarons's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.
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About Aarons
The Aarons Co Inc is a specialty retailer that has developed a lease-to-own model. It serves customers through the sale and lease ownership of furniture, consumer electronics, computers, home appliances, and other accessories with the highest quality products. Aaron's services are available through multiple channels to approximately 40-50 % of the U.S. population. The Company conducts its operations through two primary operating business segments: Aaron's Business and BrandsMart.
Aarons's Financial Performance
Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
Revenue Growth: Aarons's revenue growth over a period of 3 months has faced challenges. As of 31 March, 2024, the company experienced a revenue decline of approximately -7.73%. This indicates a decrease in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: Aarons's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -2.77%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Aarons's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -2.09%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of -0.79%, the company showcases effective utilization of assets.
Debt Management: Aarons's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.05, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
The Significance of Analyst Ratings Explained
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
This article was generated by Benzinga's automated content engine and reviewed by an editor.