PROG Upgraded to Strong-Buy by TD Cowen

PROG (NYSE:PRG) received an upgrade to a "strong-buy" rating from analysts at TD Cowen in a recent research report published on Friday. This positive outlook follows the company being the subject of several other analysts' reports.

On September 10th, KeyCorp raised their price target for PROG shares from $46.00 to $55.00, while also giving the stock an "overweight" rating. Following this, on November 13th, Stephens began coverage of PROG and assigned an "overweight" rating alongside a price target of $60.00. Earlier, on August 19th, Loop Capital upgraded PROG from "hold" to "buy" and increased their price target for the stock from $41.00 to $55.00. Moreover, on October 24th, Raymond James also raised PROG's rating from "market perform" to "outperform," setting a price target at $48.00.

Additionally, Jefferies Financial Group increased their price target on PROG from $50.00 to $58.00, and affirmed a "buy" rating on October 1st. Overall, analysts have rated the stock favorably; one has given it a hold rating, five have assigned it a buy rating, and one has marked it as a strong buy. According to data from MarketBeat.com, PROG has a consensus rating of "Buy" with an average price target of $53.83.

PROG Price Performance

As of Friday's opening, PROG shares were priced at $48.66. Over the past year, the stock has seen a low of $26.62 and a high of $50.28. The company's financial ratios include a debt-to-equity ratio of 0.94, a current ratio of 4.97, and a quick ratio of 2.34. With a market capitalization of $2.02 billion, PROG's PE ratio stands at 13.48, and its beta is recorded at 2.11. The 50-day and 200-day simple moving averages for the company are $47.15 and $42.20, respectively.

Recently, PROG disclosed its quarterly earnings on October 23rd, reporting an earnings per share (EPS) of $0.77, which exceeded analysts' expectations of $0.76 by a small margin. The company achieved a net margin of 6.55% and a return on equity of 24.56%. The quarterly revenue amounted to $606.10 million, slightly over the forecasted $601.86 million. Compared to the previous year, revenue increased by 4.0%, while last year’s EPS for the same quarter was $0.90. Looking ahead, analysts predict that PROG will post an EPS of 3.35 for the current fiscal year.

Insider Transactions

In terms of insider trading, VP George M. Sewell sold 3,500 shares of PROG on November 12th at an average price of $48.88, totaling $171,080. This sale represents a 21.69% reduction in his holdings, leaving him with 12,639 shares valued at approximately $617,794.32. Similarly, CFO Brian Garner sold 5,000 shares on November 7th for a total of $246,450 at an average price of $49.29, resulting in a 4.44% decrease in his stock ownership to 107,720 shares, valued at $5,309,518.80. Over the past three months, insiders have sold 119,207 shares with a collective value of $5,759,152, while insiders hold 2.74% of the total company stock.

Institutional Investment Activity

Recent changes in institutional holdings reflect growing interest in PROG. During the second quarter, Diversify Wealth Management LLC purchased a new stake worth $8,794,000, while Fourth Sail Capital LP and Moran Wealth Management LLC made new investments valued at $5,500,000 and $3,084,000, respectively. Additionally, Burney Co. increased its stake by 24.2%, now owning 86,401 shares valued at $2,996,000 after acquiring an additional 16,810 shares. New stakes were also taken by Los Angeles Capital Management LLC during the third quarter, valued at $1,972,000. It is noteworthy that institutional investors and hedge funds collectively own 97.92% of PROG stocks.

About PROG

PROG Holdings, Inc (NYSE:PRG) is a financial technology holding company based in Salt Lake City, Utah. The company operates across three segments: Progressive Leasing, which offers lease-to-own options mainly to consumers with credit challenges through partners in e-commerce and retail environments; Vive Financial, which provides revolving credit products aimed at consumers who might not qualify for traditional loans; and Four Technologies, which caters to customers of varied credit backgrounds by offering Buy Now, Pay Later (BNPL) alternatives via interest-free installments.

PROG, Upgrade, Stocks