Upbound Group (NASDAQ:UPBD) Stock Price Target Lowered at TD Cowen

Key Points

• TD Cowen lowered Upbound Group’s price target from $27 to $26 while maintaining a “Buy” rating, implying approximately 25.6% upside from the reported share price.
• Upbound Group exceeded third-quarter expectations, reporting $1.01 in EPS versus a $0.91 consensus and $1.15 billion in revenue versus $1.12 billion expected. However, revenue declined 1.3% year over year.
• Analyst sentiment remains cautious: the broader consensus is “Hold” with a $27 price target, while recent firms have issued downgrades or reduced targets despite the company’s earnings beat and recent insider buying.

Upbound Group (NASDAQ:UPBD - Get Free Report) had its price objective reduced by equities researchers at TD Cowen from $27.00 to $26.00 in a research note issued to investors on Friday, Benzinga reports. The brokerage presently has a "buy" rating on the stock. TD Cowen's price target would indicate a potential upside of 25.60% from the company's current price.

Other research analysts have also recently issued reports about the company. Wall Street Zen cut Upbound Group from a "buy" rating to a "hold" rating in a research report on Saturday, October 24th. BTIG Research downgraded shares of Upbound Group from a "buy" rating to a "neutral" rating and set a $28.00 target price for the company. in a research note on Friday, July 31st. Zacks Research upgraded shares of Upbound Group from a "strong sell" rating to a "hold" rating in a report on Monday, September 28th. Finally, Weiss Ratings cut Upbound Group from a "hold (c)" rating to a "hold (c-)" rating in a report on Monday, September 21st. One equities research analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Upbound Group presently has a consensus rating of "Hold" and a consensus price target of $27.00.

Upbound Group Trading Up 3.6%

Upbound Group stock traded up $0.72 during midday trading on Friday, hitting $20.70. 2,610,162 shares of the stock were exchanged, compared to its average volume of 930,461. The company has a fifty day simple moving average of $17.19 and a two-hundred day simple moving average of $18.87. The stock has a market capitalization of $1.21 billion, a PE ratio of 13.44 and a beta of 1.78. Upbound Group has a 52 week low of $14.98 and a 52 week high of $23.98. The company has a quick ratio of 0.97, a current ratio of 3.22 and a debt-to-equity ratio of 1.94.

Upbound Group (NASDAQ:UPBD - Get Free Report) last released its quarterly earnings data on Thursday, October 29th. The company reported $1.01 EPS for the quarter, beating analysts' consensus estimates of $0.91 by $0.10. The business had revenue of $1.15 billion during the quarter, compared to analysts' expectations of $1.12 billion. Upbound Group had a net margin of 1.90% and a return on equity of 34.53%. The firm's quarterly revenue was down 1.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.00 EPS. Equities research analysts anticipate that Upbound Group will post 4.20 EPS for the current fiscal year.

Insider Activity

In other Upbound Group news, EVP Anthony Blasquez sold 10,000 shares of Upbound Group stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $18.85, for a total value of $188,500.00. Following the transaction, the executive vice president owned 43,717 shares in the company, valued at $824,065.45. The trade was a 18.62% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Jeffrey Brown purchased 2,764 shares of the firm's stock in a transaction that occurred on Tuesday, October 27th. The shares were bought at an average cost of $17.01 per share, for a total transaction of $47,015.64. Following the completion of the acquisition, the director directly owned 98,898 shares in the company, valued at $1,682,254.98. The trade was a 2.88% increase in their position. The disclosure for this purchase is available in the SEC filing. Company insiders own 1.20% of the company's stock.

Hedge Funds Weigh In On Upbound Group

A number of hedge funds have recently modified their holdings of the business. IFP Advisors Inc raised its stake in Upbound Group by 299.3% during the second quarter. IFP Advisors Inc now owns 1,214 shares of the company's stock worth $26,000 after buying an additional 910 shares during the last quarter. Quantbot Technologies LP acquired a new stake in shares of Upbound Group in the 2nd quarter worth about $46,000. Signaturefd LLC increased its holdings in Upbound Group by 74.5% during the 3rd quarter. Signaturefd LLC now owns 3,050 shares of the company's stock worth $48,000 after purchasing an additional 1,302 shares in the last quarter. Allworth Financial LP bought a new stake in Upbound Group during the second quarter worth $50,000. Finally, PNC Financial Services Group Inc. lifted its position in shares of Upbound Group by 49.9% during the first quarter. PNC Financial Services Group Inc. now owns 3,685 shares of the company's stock valued at $67,000 after purchasing an additional 1,226 shares in the last quarter. Institutional investors and hedge funds own 90.30% of the company's stock.

Upbound Group News Summary

Here are the key news stories impacting Upbound Group this week:

• Positive Sentiment: Q3 earnings and revenue exceeded expectations: Upbound reported adjusted earnings of $1.01 per share, topping estimates of approximately $0.89–$0.91, while revenue of $1.15 billion surpassed the roughly $1.12 billion consensus. EPS also improved from $1.00 a year earlier. Upbound Group Q3 Earnings Report
• Positive Sentiment: Management highlighted cash flow and margin gains: The earnings call emphasized improved cash generation, margin expansion and opportunities to support future growth. These factors may reinforce investor confidence in the company’s operating performance and financial flexibility. Upbound Group Q3 Earnings Call Highlights
• Positive Sentiment: Director bought shares: Director Jeffrey Brown purchased 2,764 shares for approximately $47,016, increasing his direct ownership by 2.88%. The insider purchase offers a supportive sentiment signal, though it is relatively small compared with the company’s overall market value. Upbound Group Director Share Purchase
• Neutral Sentiment: Analyst sentiment remains mixed: The average price target is about $27.50, but coverage is concentrated around “Hold” ratings, with some firms recently lowering targets or downgrading the shares. This suggests potential upside is recognized, but conviction remains limited.
• Negative Sentiment: Revenue declined year over year: Quarterly revenue fell 1.3% from the prior-year period, indicating that the earnings beat was driven more by profitability and execution than by top-line growth.
• Negative Sentiment: Dividend sustainability warrants attention: Upbound’s quarterly dividend is $0.39, or $1.56 annualized, producing a yield near 7.8%. Its reported payout ratio above 100% could constrain flexibility if earnings or cash flow weaken.

About Upbound Group

Upbound Group, Inc is a provider of consumer leasing and retail solutions, operating primarily through its Rent-A-Center and Acima brands. The company enables customers to obtain merchandise through flexible lease-to-own agreements and related payment options, serving consumers who may prefer alternatives to traditional retail financing.

Its Rent-A-Center business operates company-owned and franchised locations, as well as digital channels, offering furniture, appliances, electronics, computers, smartphones and other household goods.

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