Aaron's (NYSE:PRG) Shares Gap Up After Earnings Beat

Key Points

• EPS beat and stock surge: Aaron's reported Q1 EPS of $1.24 vs. $1.10 expected and revenue of $742.7M (+11.1% YoY), prompting the shares to gap up (opened $32.38 vs prior close $28.88) and rise roughly 23.8%.
• Dividend increase and guidance: The company raised its quarterly dividend to $0.14 (annualized $0.56, ~1.6% yield) and set Q2 2026 guidance at $1.05 EPS.
• Analyst view and valuation: Coverage is mixed but consensus is a Moderate Buy with an average target of $41.33; the stock trades at about a 9.9x P/E with a market cap near $1.41B.

Aaron's Holdings Company, Inc. (NYSE:PRG - Get Free Report) gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $28.88, but opened at $32.38. Aaron's shares last traded at $34.6950, with a volume of 135,185 shares trading hands.

The company reported $1.24 earnings per share for the quarter, beating the consensus estimate of $1.10 by $0.14. Aaron's had a net margin of 5.97% and a return on equity of 20.99%. The firm had revenue of $742.67 million during the quarter, compared to the consensus estimate of $726.96 million. During the same period last year, the firm posted $0.90 EPS. The firm's revenue for the quarter was up 11.1% on a year-over-year basis. Aaron's has set its Q2 2026 guidance at 1.050-1.050 EPS.

Aaron's Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, March 24th. Investors of record on Thursday, March 12th were given a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a yield of 1.6%. This is an increase from Aaron's's previous quarterly dividend of $0.13. The ex-dividend date of this dividend was Thursday, March 12th. Aaron's's payout ratio is presently 15.56%.

Wall Street Analysts Forecast Growth

PRG has been the topic of a number of recent research reports. Zacks Research lowered Aaron's from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 20th. TD Cowen raised their price target on Aaron's from $42.00 to $43.00 and gave the stock a "buy" rating in a research report on Wednesday, March 11th. Weiss Ratings reissued a "hold (c)" rating on shares of Aaron's in a research note on Thursday, January 22nd. Finally, Wall Street Zen raised Aaron's from a "hold" rating to a "buy" rating in a research note on Saturday, February 21st. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, Aaron's currently has a consensus rating of "Moderate Buy" and an average target price of $41.33.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. Quarry LP grew its holdings in Aaron's by 82.8% during the 4th quarter. Quarry LP now owns 1,117 shares of the company's stock valued at $33,000 after purchasing an additional 506 shares in the last quarter. Federation des caisses Desjardins du Quebec acquired a new position in Aaron's in the fourth quarter valued at approximately $44,000. GAMMA Investing LLC boosted its stake 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 acquiring an additional 563 shares during the period. WealthCollab LLC boosted its stake in Aaron's by 61.9% during the 2nd 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 period. Finally, Strs Ohio acquired a new position in Aaron's during the 1st quarter valued at about $129,000. 97.92% of the stock is owned by hedge funds and other institutional investors.

Aaron's Stock Up 23.8%

The company has a debt-to-equity ratio of 0.80, a current ratio of 4.71 and a quick ratio of 2.32. The firm has a market cap of $1.41 billion, a price-to-earnings ratio of 9.91 and a beta of 1.81. The firm's fifty day moving average is $31.26 and its two-hundred day moving average is $30.89.

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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