Aaron's (NYSE:PRG) Trading Up 4.7% After Better-Than-Expected Earnings

Key Points

• Aaron's Holdings Company, Inc. shares experienced a 4.7% increase following a stronger-than-expected earnings report, with earnings per share at $0.90 surpassing the consensus estimate of $0.73.
• The company declared a quarterly dividend of $0.13 per share, resulting in an annualized dividend yield of 1.5% and a dividend payout ratio of 10.28%.
• Analysts have mixed ratings on Aaron's stock, with one Strong Buy rating, four Buys, two Holds, and one Sell, setting an average target price of $41.50.

Aaron's Holdings Company, Inc. (NYSE:PRG - Get Free Report) shares were up 4.7% during trading on Wednesday following a stronger than expected earnings report. The company traded as high as $35.60 and last traded at $34.26. Approximately 446,845 shares were traded during mid-day trading, a decline of 5% from the average daily volume of 471,627 shares. The stock had previously closed at $32.72.

The company reported $0.90 earnings per share for the quarter, topping the consensus estimate of $0.73 by $0.17. Aaron's had a net margin of 8.53% and a return on equity of 22.54%. During the same quarter in the previous year, the firm earned $0.77 EPS. The company's quarterly revenue was down 1.8% compared to the same quarter last year. Aaron's has set its FY 2025 guidance at 3.350-3.450 EPS. Q4 2025 guidance at 0.550-0.650 EPS.

Aaron's Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 4th. Investors of record on Tuesday, August 19th were given a dividend of $0.13 per share. This represents a $0.52 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date of this dividend was Tuesday, August 19th. Aaron's's dividend payout ratio (DPR) is presently 10.28%.

Analysts Set New Price Targets

A number of analysts recently commented on the company. Wall Street Zen downgraded Aaron's from a "buy" rating to a "hold" rating in a research report on Saturday, October 11th. BTIG Research reaffirmed a "sell" rating and set a $27.00 price target on shares of Aaron's in a research report on Friday, October 10th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Aaron's in a research report on Wednesday, October 8th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $41.50.

Hedge Funds Weigh In On Aaron's

Large investors have recently made changes to their positions in the stock. Ameritas Advisory Services LLC bought a new position in shares of Aaron's in the second quarter worth $27,000. Caitong International Asset Management Co. Ltd boosted its stake in Aaron's by 785.6% during the first quarter. Caitong International Asset Management Co. Ltd now owns 1,045 shares of the company's stock valued at $28,000 after buying an additional 927 shares during the period. GAMMA Investing LLC boosted its stake in Aaron's by 66.2% during the second quarter. GAMMA Investing LLC now owns 1,122 shares of the company's stock valued at $33,000 after buying an additional 447 shares during the period. Whittier Trust Co. boosted its stake in Aaron's by 157.6% during the second quarter. Whittier Trust Co. now owns 1,391 shares of the company's stock valued at $41,000 after buying an additional 851 shares during the period. Finally, WealthCollab LLC boosted its stake in Aaron's by 61.9% during the second quarter. WealthCollab LLC now owns 2,092 shares of the company's stock valued at $61,000 after buying an additional 800 shares during the period. 97.92% of the stock is owned by institutional investors.

Aaron's Stock Up 4.8%

The company has a market cap of $1.36 billion, a P/E ratio of 6.79 and a beta of 1.79. The company has a 50 day moving average of $33.65 and a 200-day moving average of $30.44. The company has a debt-to-equity ratio of 0.89, a current ratio of 5.71 and a quick ratio of 2.82.

Aaron's Company Profile

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.

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