Aaron's (NYSE:PRG) Shares Down 5.8% - Here's Why

Key Points

• Shares fell 5.8% intraday to about $30.82 on Tuesday with 272,389 shares traded—roughly 45% below the average session volume.
• The company reported an EPS beat ($0.74 vs. $0.60) but missed revenue ($525.4M vs. $581.8M), with revenue down 5.2% year-over-year; management guided Q1 2026 EPS of $0.70–0.90 and FY 2026 EPS of $4.00–4.45.
• Analysts hold a consensus "Buy" rating with a $40.80 target (some firms set higher targets, e.g., B. Riley $50), and Aaron's raised its quarterly dividend to $0.14 (annualized $0.56, ~1.8% yield).

Aaron's Holdings Company, Inc. (NYSE:PRG - Get Free Report)'s stock price fell 5.8% during mid-day trading on Tuesday . The company traded as low as $30.59 and last traded at $30.82. 272,389 shares changed hands during mid-day trading, a decline of 45% from the average session volume of 494,821 shares. The stock had previously closed at $32.72.

Analysts Set New Price Targets

A number of research analysts have weighed in on PRG shares. B. Riley Financial started coverage on Aaron's in a report on Tuesday, December 16th. They issued a "buy" rating and a $50.00 price objective on the stock. Zacks Research upgraded Aaron's from a "hold" rating to a "strong-buy" rating in a research report on Friday, February 20th. Weiss Ratings reiterated a "hold (c)" rating on shares of Aaron's in a report on Thursday, January 22nd. Wall Street Zen raised shares of Aaron's from a "hold" rating to a "buy" rating in a report on Saturday, February 21st. Finally, BTIG Research upgraded shares of Aaron's from a "sell" rating to a "neutral" rating and set a $31.00 target price on the stock in a report on Friday, November 21st. Two equities research analysts have rated the stock with a Strong Buy rating, three have given a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Buy" and a consensus target price of $40.80.

Aaron's Stock Performance

The company has a quick ratio of 2.32, a current ratio of 4.71 and a debt-to-equity ratio of 0.80. The firm has a market capitalization of $1.22 billion, a PE ratio of 8.58 and a beta of 1.71. The firm has a 50-day moving average price of $33.33 and a 200 day moving average price of $32.06.

Aaron's (NYSE:PRG - Get Free Report) last announced its earnings results on Wednesday, February 18th. The company reported $0.74 EPS for the quarter, beating analysts' consensus estimates of $0.60 by $0.14. The company had revenue of $525.36 million during the quarter, compared to analysts' expectations of $581.82 million. Aaron's had a return on equity of 20.99% and a net margin of 5.97%.Aaron's's revenue for the quarter was down 5.2% on a year-over-year basis. During the same period last year, the business posted $0.80 EPS. Aaron's has set its Q1 2026 guidance at 0.700-0.900 EPS and its FY 2026 guidance at 4.000-4.450 EPS. Research analysts expect that Aaron's Holdings Company, Inc. will post 3.45 earnings per share for the current year.

Aaron's Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 24th. Investors of record on Thursday, March 12th will be paid a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a yield of 1.8%. The ex-dividend date of this dividend is Thursday, March 12th. This is a positive change from Aaron's's previous quarterly dividend of $0.13. Aaron's's payout ratio is presently 14.44%.

Hedge Funds Weigh In On Aaron's

A number of institutional investors and hedge funds have recently made changes to their positions in PRG. Quarry LP lifted its holdings in Aaron's by 82.8% during the 4th quarter. Quarry LP now owns 1,117 shares of the company's stock worth $33,000 after buying an additional 506 shares during the last quarter. Federation des caisses Desjardins du Quebec purchased a new stake in Aaron's during the fourth quarter worth approximately $44,000. GAMMA Investing LLC boosted its holdings in Aaron's by 45.3% in the fourth quarter. GAMMA Investing LLC now owns 1,806 shares of the company's stock valued at $53,000 after purchasing an additional 563 shares in the last quarter. WealthCollab LLC increased its stake in Aaron's by 61.9% in the second quarter. WealthCollab LLC now owns 2,092 shares of the company's stock valued at $61,000 after purchasing an additional 800 shares during the last quarter. Finally, CWM LLC raised its holdings in Aaron's by 85.1% during the third quarter. CWM LLC now owns 5,258 shares of the company's stock worth $170,000 after purchasing an additional 2,417 shares in the last quarter. 97.92% of the stock is owned by institutional investors and hedge funds.

About Aaron's

PROG Holdings, Inc NYSE: PRG, formerly known as Aaron's, is a North American provider of lease-to-own and consumer finance solutions. The company operates through two primary segments: Aaron's Business Solutions and Progressive Financial Services. Through Aaron's Business Solutions, PROG offers customers access to furniture, electronics, home appliances and technology products via lease ownership arrangements, serving both individual consumers and small businesses.

The Progressive Financial Services segment provides lease-purchase and retail point-of-sale financing programs to customers with limited credit histories.

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