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RM: Aggressive Share Repurchases Will Drive Future Upside Potential

Digital Channels And Machine Learning Will Drive Profit Despite Margin Pressure

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RM
AnalystConsensusTarget
Not Invested
Published 24 Sep 2024

Update shared on 10 Dec 2025

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Narrative Update on Regional Management

Analysts have modestly increased their price target on Regional Management to approximately $46.33 per share. This reflects stable assumptions for discount rate, revenue growth, profit margin, and future earnings multiples that continue to support a largely unchanged fair value outlook.

What's in the News

  • Regional Management completed the repurchase of 1,020,689 shares, representing about 10.2% of its outstanding stock, for $36.5 million under its buyback program announced on December 2, 2024 (company filing).
  • From July 1, 2025 to October 31, 2025, the company repurchased 564,465 shares, or roughly 5.67% of shares outstanding, for $21.5 million as part of the same authorization (company filing).
  • In November 2025, Regional Management increased its equity buyback authorization by an additional $30 million, bringing the total to $60 million and extending the program through June 30, 2027 (company announcement).
  • The company plans to open additional branches in Louisiana and California before year end and to enter one to two new states in 2026, with a strategic focus on high quality, auto secured and higher margin small loan portfolios, as well as enhanced data and analytic capabilities (company announcement).
  • Chief Executive Officer Robert W. Beck will retire, and Lakhbir Lamba will be appointed as the new CEO effective November 10, 2025. Mr. Beck will remain in an advisory role until June 30, 2026 to support the leadership transition (company announcement).

Valuation Changes

  • Fair Value Estimate remains unchanged at approximately $46.33 per share, indicating a stable intrinsic value assessment.
  • Discount Rate remains steady at 12.5%, signaling no change in the perceived risk profile or required return.
  • Revenue Growth is effectively unchanged at about 10.86%, with only immaterial rounding differences in the underlying model.
  • Net Profit Margin is effectively unchanged at roughly 11.28%, with only minute numerical adjustments that do not affect the overall outlook.
  • Future P/E remains effectively flat at around 6.33x, reflecting a consistent view of earnings multiples applied in the valuation.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.