Regional management sees $355,746 stock acquisition by Forager Fund

Regional Management Corp . (NYSE:RM), a $280 million market cap financial services company currently trading at an attractive P/E ratio of 8.4x, saw a notable transaction as Forager Fund, L.P., a significant shareholder, acquired 12,246 shares of the company’s common stock. The acquisition, which took place on June 12, 2025, was executed at a weighted average price of $29.05 per share, resulting in a total transaction value of approximately $355,746. According to InvestingPro analysis, the stock appears slightly undervalued based on its Fair Value estimate.

Following this transaction, Forager Fund’s total holdings in Regional Management increased to 1,052,715 shares. The shares are held directly by Forager Fund, L.P., with Forager Capital Management, LLC acting as the general partner. Principals Edward Kissel and Robert MacArthur have shared authority over the voting and disposal of these shares on behalf of the general partner. The company maintains strong liquidity with a current ratio of 10.4, and analysts see significant upside potential with a consensus high target of $45. Discover more detailed analysis and insights with InvestingPro’s comprehensive research report, available for over 1,400 US stocks.

In other recent news, Regional Management Corp reported its first-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $0.70, compared to the forecasted $0.68. The company also reported revenue of $153 million, exceeding the anticipated $151.06 million, marking a 6% increase year-over-year. Additionally, Regional Management opened 15 new branches, expanding into new markets such as California, Arizona, and Louisiana, which contributed to its revenue growth. The company’s auto secured portfolio experienced a substantial 37% year-over-year increase, reflecting strong demand in this segment. Despite the positive financial results, the company’s stock declined in aftermarket trading. Analysts from Stephens Inc. and Citizens Capital discussed the company’s capital generation strategy and the impact of economic uncertainty on credit performance during the earnings call. Regional Management maintains a conservative underwriting approach, with a 7.1% delinquency rate, and projects a minimum of 10% portfolio growth for 2025. The company continues to focus on strategic expansion and disciplined financial management to navigate potential market challenges.

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