Aarons Story

<div class='circular--portrait' style='background:#800000;color: #F8F8FF;font-size:3em;'>AAN</div>
AAN -- USA Stock  

USD 55.68  2.16  3.73%

Aarons Inventory Turnover is quite stable at the moment as compared to the past year. The company's current value of Inventory Turnover is estimated at 0.10. Accounts Payable Turnover is projected to rise to 47.77 this year, although the value of Revenue Per Employee will most likely fall to about 273.1 K. While many traders today are more concerned about the preservation of capital over market returns, Aarons Inc could be one exception. We will evaluate why recent Aarons price moves suggest a bounce in August. This post is to show some fundamental factors affecting Aarons' products and services. I will also disclose how it may impact the investing outlook for the entity in August.
Published over two months ago
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A comeback story in the works for Aarons Inc
Aarons Inc reported the last year's revenue of 4.04 B. Reported Net Loss for the year was (304.61 M) with profit before taxes, overhead, and interest of 1.84 B. Earning per share calculations of the firm is based on official Zacks consensus of 4 analysts regarding Aarons' future annual earnings. Given the historical accuracy of 84.46%, the future earnings per share of the company is estimated to be 3.0986 with the lowest and highest values of 2.6 and 3.48, respectively. Please note that this consensus of annual earnings estimates for Aarons Inc is an estimate of EPS before non-recurring items and including employee stock options expenses.

And What about dividends?

A dividend is the distribution of a portion of Aarons earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Aarons dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Aarons one year expected dividend income is about $0.09 per share.
The value of Payment of Dividends and Other Cash Distributions is expected to slide to about (10.2 M). The value of Dividend Yield is estimated to slide to 0.003395.
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions-9.4 M-10.2 M
Dividend Yield 0.00345  0.003395 
Dividends per Basic Common Share 0.14  0.13 
Investing in dividend-paying stocks, such as Aarons Inc is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Aarons must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Aarons. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Aarons's Liquidity

Aarons financial leverage refers to using borrowed capital as a funding source to finance Aarons Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Aarons financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Aarons's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Aarons, but it might be worth checking our own buy vs. sell analysis

What did Aarons file with SEC?

The SEC filings are financial statements or other formal documents of Aarons Inc that are regularly submitted to the U.S. Securities and Exchange Commission (SEC). Public companies, certain insiders, and broker-dealers are required to make SEC filings and fintech professionals rely on these filings for information about companies they are evaluating for investment purposes. Please note, most SEC filings are available online through the SEC's EDGAR database. Please check here for more information.
Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Aarons shareholders may or may not be submitted as SEC does not always require it.
Financial Statements and Exhibits. Regulation FD Disclosure
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Submission of Matters to a Vote of Security Holders
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Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Aarons shareholders may or may not be submitted as SEC does not always require it.

Exercise or conversion by Robert Sinclair of 1960 shares of Aarons subject to Rule 16b-3

Legal trades by Aarons insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Aarons insider trading alert for exercise of stock options (right to buy) by Robert Sinclair, Corporate Controller, on 14th of August 2020. This event was filed by Aarons Inc with SEC on 2020-08-14. Statement of changes in beneficial ownership - SEC Form 4. Robert Sinclair currently serves as vice president corporate controller of Aarons Inc [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking it down a bit more

Aarons Inc retains a total of 67.57 Million outstanding shares. The majority of Aarons Inc outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Aarons Inc to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Aarons. Please pay attention to any change in the institutional holdings of Aarons Inc as this could imply that something significant has changed or about to change at the company. Also note that nearly four million fifty-four thousand two hundred invesors are currently shorting Aarons expressing very little confidence in its future performance.

Ownership Breakdown

Institutions
104.26%
Retail Investors-5.59
Insiders1.33
Institutions104.26

Our take on today Aarons thrive

Maximum drawdown is down to 25.56. It may entail a possible volatility slide. Aarons Inc is displaying above-average volatility over the selected time horizon. Investors should scrutinize Aarons Inc independently to ensure intended market timing strategies are aligned with expectations about Aarons volatility.

Our Final Take On Aarons

Whereas other entities in the rental & leasing services industry are either recovering or due for a correction, Aarons may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor exit any shares of Aarons at this time. The Aarons Inc risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Aarons.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Aarons Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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