BTIG Research Reiterates Buy Rating for Upbound Group (NASDAQ:UPBD)

Key Points

• BTIG Research has reaffirmed a "Buy" rating for Upbound Group (NASDAQ:UPBD) with a target price of $40.00, indicating a potential upside of 47.77% from its current price.
• Upbound Group reported a quarterly earnings per share (EPS) of $1.12, exceeding analyst expectations and showing a 7.5% year-over-year revenue increase.
• Institutional ownership of Upbound Group stands at 90.30%, with significant recent investments, including a 517.8% increase in shares held by Ieq Capital LLC.

BTIG Research reaffirmed their buy rating on shares of Upbound Group (NASDAQ:UPBD - Free Report) in a research report report published on Tuesday morning,Benzinga reports. They currently have a $40.00 price objective on the stock.

A number of other equities research analysts have also weighed in on the stock. Loop Capital upgraded shares of Upbound Group from a "hold" rating to a "buy" rating and set a $36.00 price objective on the stock in a report on Monday, September 15th. Wall Street Zen raised shares of Upbound Group from a "hold" rating to a "buy" rating in a research report on Saturday, August 30th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of "Buy" and an average price target of $36.80.

Upbound Group Price Performance

NASDAQ UPBD traded down $0.78 during trading hours on Tuesday, hitting $26.56. 1,174,666 shares of the company's stock traded hands, compared to its average volume of 682,919. The firm's 50-day moving average is $24.48 and its 200-day moving average is $24.06. Upbound Group has a 52-week low of $19.65 and a 52-week high of $36.00. The company has a debt-to-equity ratio of 2.29, a current ratio of 3.11 and a quick ratio of 0.83. The company has a market capitalization of $1.54 billion, a PE ratio of 14.92 and a beta of 1.77.

Upbound Group (NASDAQ:UPBD - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The company reported $1.12 EPS for the quarter, topping the consensus estimate of $1.05 by $0.07. Upbound Group had a net margin of 2.28% and a return on equity of 36.26%. The firm had revenue of $1.16 billion for the quarter, compared to analyst estimates of $1.14 billion. During the same period in the prior year, the business posted $1.04 EPS. The business's revenue for the quarter was up 7.5% compared to the same quarter last year. Upbound Group has set its FY 2025 guidance at 4.050-4.40 EPS. Q3 2025 guidance at 0.950-1.05 EPS. Equities analysts forecast that Upbound Group will post 4.28 EPS for the current fiscal year.

Upbound Group Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, October 21st. Stockholders of record on Tuesday, September 30th will be issued a dividend of $0.39 per share. The ex-dividend date is Tuesday, September 30th. This represents a $1.56 dividend on an annualized basis and a dividend yield of 5.9%. Upbound Group's payout ratio is 87.64%.

Insider Transactions at Upbound Group

In related news, Director Jeffrey J. Brown bought 1,653 shares of the stock in a transaction that occurred on Tuesday, July 8th. The stock was purchased at an average cost of $25.90 per share, for a total transaction of $42,812.70. Following the completion of the acquisition, the director owned 89,400 shares in the company, valued at $2,315,460. This trade represents a 1.88% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Ralph T. Montrone sold 6,000 shares of the business's stock in a transaction that occurred on Thursday, September 11th. The stock was sold at an average price of $25.23, for a total transaction of $151,380.00. Following the sale, the executive vice president owned 49,123 shares of the company's stock, valued at approximately $1,239,373.29. This represents a 10.88% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 2.60% of the company's stock.

Institutional Investors Weigh In On Upbound Group

Several institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. lifted its position in shares of Upbound Group by 3.6% during the first quarter. Vanguard Group Inc. now owns 7,025,821 shares of the company's stock worth $168,339,000 after purchasing an additional 244,746 shares in the last quarter. Ieq Capital LLC raised its holdings in Upbound Group by 517.8% in the second quarter. Ieq Capital LLC now owns 4,535,114 shares of the company's stock valued at $113,831,000 after acquiring an additional 3,801,043 shares in the last quarter. LSV Asset Management raised its holdings in Upbound Group by 20.9% in the second quarter. LSV Asset Management now owns 2,041,415 shares of the company's stock valued at $51,240,000 after acquiring an additional 352,264 shares in the last quarter. Geode Capital Management LLC raised its holdings in Upbound Group by 2.1% in the second quarter. Geode Capital Management LLC now owns 1,341,347 shares of the company's stock valued at $33,672,000 after acquiring an additional 27,185 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. raised its holdings in Upbound Group by 8.0% in the first quarter. Charles Schwab Investment Management Inc. now owns 1,051,636 shares of the company's stock valued at $25,197,000 after acquiring an additional 77,450 shares in the last quarter. 90.30% of the stock is currently owned by hedge funds and other institutional investors.

About Upbound Group

Upbound Group, Inc leases household durable goods to customers on a lease-to-own basis in the United States, Puerto Rico, and Mexico. It operates through four segments: Rent-A-Center, Acima, Mexico, and Franchising. The company's brands, such as Rent-A-Center and Acima that facilitate consumer transactions across a range of store-based and virtual channels.