Aaron's (NYSE:PRG) Posts Quarterly Earnings Results, Beats Estimates By $0.23 EPS

Aaron's (NYSE:PRG - Get Free Report) announced its earnings results on Wednesday. The company reported $1.02 earnings per share for the quarter, beating the consensus estimate of $0.79 by $0.23, Zacks reports. Aaron's had a net margin of 8.53% and a return on equity of 22.54%. The business had revenue of $604.66 million for the quarter, compared to the consensus estimate of $586.25 million. During the same quarter in the prior year, the firm posted $0.92 earnings per share. The business's revenue for the quarter was up 2.1% on a year-over-year basis. Aaron's updated its Q3 2025 guidance to 0.700-0.750 EPS and its FY 2025 guidance to 3.200-3.350 EPS.

Aaron's Stock Up 0.1%

Shares of NYSE PRG traded up $0.03 during mid-day trading on Friday, reaching $32.66. 544,548 shares of the company were exchanged, compared to its average volume of 413,270. The company has a quick ratio of 2.35, a current ratio of 5.71 and a debt-to-equity ratio of 0.89. The stock has a market cap of $1.32 billion, a price-to-earnings ratio of 6.45 and a beta of 1.77. Aaron's has a 1 year low of $23.50 and a 1 year high of $50.28. The firm has a 50-day moving average of $29.40 and a 200 day moving average of $30.99.

Aaron's Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 3rd. Investors of record on Tuesday, May 20th were paid a dividend of $0.13 per share. This represents a $0.52 dividend on an annualized basis and a dividend yield of 1.59%. The ex-dividend date was Tuesday, May 20th. Aaron's's dividend payout ratio (DPR) is currently 10.28%.

Analysts Set New Price Targets

PRG has been the topic of several recent analyst reports. Wall Street Zen downgraded shares of Aaron's from a "buy" rating to a "hold" rating in a research note on Saturday. BTIG Research cut shares of Aaron's from a "neutral" rating to a "sell" rating and set a $24.00 price target on the stock. in a report on Monday, July 14th. Loop Capital cut their price target on shares of Aaron's from $45.00 to $40.00 and set a "buy" rating on the stock in a report on Thursday, April 24th. Finally, KeyCorp cut their price target on shares of Aaron's from $50.00 to $45.00 and set an "overweight" rating on the stock in a report on Thursday, April 24th. One analyst has rated the stock with a sell rating, two have given a hold rating, four have assigned a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, Aaron's currently has an average rating of "Moderate Buy" and a consensus price target of $41.00.

Insiders Place Their Bets

In other news, CEO Steven A. Michaels acquired 14,000 shares of Aaron's stock in a transaction that occurred on Monday, May 12th. The stock was purchased at an average price of $29.03 per share, for a total transaction of $406,420.00. Following the purchase, the chief executive officer directly owned 559,641 shares in the company, valued at $16,246,378.23. The trade was a 2.57% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CFO Brian Garner bought 3,500 shares of the firm's stock in a transaction that occurred on Tuesday, May 13th. The shares were purchased at an average cost of $28.93 per share, with a total value of $101,255.00. Following the transaction, the chief financial officer directly owned 132,597 shares of the company's stock, valued at $3,836,031.21. The trade was a 2.71% increase in their ownership of the stock. The disclosure for this purchase can be found here. Corporate insiders own 3.21% of the company's stock.

Institutional Investors Weigh In On Aaron's

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Caxton Associates LLP acquired a new stake in Aaron's in the 1st quarter worth approximately $233,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in Aaron's by 5.0% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 24,363 shares of the company's stock worth $648,000 after purchasing an additional 1,162 shares in the last quarter. Royal Bank of Canada boosted its stake in Aaron's by 23.4% in the 1st quarter. Royal Bank of Canada now owns 35,910 shares of the company's stock worth $955,000 after purchasing an additional 6,807 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in Aaron's by 6.1% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 131,423 shares of the company's stock worth $3,496,000 after buying an additional 7,542 shares during the last quarter. Finally, Goldman Sachs Group Inc. raised its position in Aaron's by 5.4% during the 1st quarter. Goldman Sachs Group Inc. now owns 313,611 shares of the company's stock worth $8,342,000 after buying an additional 16,126 shares during the last quarter. Hedge funds and other institutional investors own 97.92% of the company's stock.

About Aaron's

PROG Holdings, Inc NYSE: PRG is a financial technology holding company based in Salt Lake City, Utah with three business segments: Progressive Leasing, which offers lease-to-own transactions primarily to credit-challenged consumers through e-commerce and point-of-sale retail partners, via online, mobile, and in-store solutions; Vive Financial, which provides consumers who may not qualify for traditional prime lending with a variety of second-look, revolving credit products through private label and branded credit cards; and Four Technologies, which provides consumers of all credit backgrounds Buy Now, Pay Later (BNPL) options through four interest-free installments via its platform, Four.