The Progressive Corporation (NYSE:PGR) Stock Rated "Hold" by Sell-Side Analysts

Key Points

• Analysts rate Progressive “Hold” overall: Among 23 analysts, 12 recommend holding, nine recommend buying and two recommend selling. The average 12-month price target is $234.95, compared with a recent share price of $222.81.
• Recent financial results exceeded expectations: Progressive reported quarterly EPS of $5.67 versus the $4.64 consensus estimate, while revenue reached $23.61 billion, up 5% year over year and above forecasts.
• Progressive maintains a modest dividend and strong institutional ownership: The company pays $0.10 per share quarterly, yielding approximately 0.2%, while institutional investors and hedge funds own 85.34% of its stock.

The Progressive Corporation (NYSE:PGR - Get Free Report) has received a consensus recommendation of "Hold" from the twenty-three ratings firms that are presently covering the stock, Marketbeat.com reports. Two investment analysts have rated the stock with a sell recommendation, twelve have given a hold recommendation and nine have issued a buy recommendation on the company. The average 12-month price objective among analysts that have updated their coverage on the stock in the last year is $234.95.

PGR has been the topic of a number of recent analyst reports. Raymond James Financial reiterated an "outperform" rating and issued a $245.00 price objective (down from $265.00) on shares of Progressive in a report on Monday, September 21st. Morgan Stanley raised Progressive from an "underweight" rating to an "equal weight" rating and raised their target price for the stock from $190.00 to $210.00 in a research note on Friday, July 24th. JPMorgan Chase & Co. lifted their target price on Progressive from $241.00 to $250.00 and gave the company a "neutral" rating in a research report on Monday, October 5th. Jefferies Financial Group restated a "hold" rating and issued a $228.00 target price (up from $213.00) on shares of Progressive in a research report on Wednesday, August 19th. Finally, Keefe, Bruyette & Woods reaffirmed an "outperform" rating and issued a $250.00 price target on shares of Progressive in a research note on Friday, September 18th.

Progressive Price Performance

Shares of PGR stock opened at $222.81 on Wednesday. The company has a debt-to-equity ratio of 0.24, a current ratio of 0.29 and a quick ratio of 0.29. The firm's 50-day moving average is $214.72 and its two-hundred day moving average is $209.19. Progressive has a 12 month low of $189.20 and a 12 month high of $241.01. The company has a market capitalization of $129.53 billion, a PE ratio of 11.17, a price-to-earnings-growth ratio of 2.39 and a beta of 0.25.

Progressive (NYSE:PGR - Get Free Report) last announced its quarterly earnings results on Wednesday, July 15th. The insurance provider reported $5.67 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.64 by $1.03. The business had revenue of $23.61 billion during the quarter, compared to the consensus estimate of $19.49 billion. Progressive had a net margin of 12.84% and a return on equity of 32.92%. The business's revenue was up 5.0% compared to the same quarter last year. During the same quarter last year, the firm earned $5.40 EPS. Analysts predict that Progressive will post 18.14 earnings per share for the current year.

Progressive Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, October 9th. Investors of record on Thursday, October 1st were given a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.2%. The ex-dividend date of this dividend was Thursday, October 1st. Progressive's dividend payout ratio (DPR) is presently 2.01%.

Insider Transactions at Progressive

In other Progressive news, insider Lori A. Niederst sold 7,339 shares of the stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $209.29, for a total transaction of $1,535,979.31. Following the completion of the transaction, the insider owned 42,567 shares of the company's stock, valued at $8,908,847.43. This trade represents a 14.71% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven Broz sold 1,225 shares of Progressive stock in a transaction dated Thursday, September 24th. The shares were sold at an average price of $204.29, for a total transaction of $250,255.25. Following the sale, the insider owned 30,032 shares of the company's stock, valued at approximately $6,135,237.28. This represents a 3.92% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 106,782 shares of company stock worth $22,965,332 in the last 90 days. Insiders own 0.32% of the company's stock.

Hedge Funds Weigh In On Progressive

Several large investors have recently made changes to their positions in PGR. Unique Wealth LLC grew its position in Progressive by 4.3% during the 2nd quarter. Unique Wealth LLC now owns 1,240 shares of the insurance provider's stock worth $271,000 after acquiring an additional 51 shares during the last quarter. Linden Thomas Advisory Services LLC increased its stake in Progressive by 1.4% in the 2nd quarter. Linden Thomas Advisory Services LLC now owns 4,072 shares of the insurance provider's stock worth $890,000 after purchasing an additional 55 shares during the period. Brown Miller Wealth Management LLC lifted its position in Progressive by 2.4% in the second quarter. Brown Miller Wealth Management LLC now owns 2,365 shares of the insurance provider's stock valued at $517,000 after purchasing an additional 55 shares during the last quarter. Eastern Bank lifted its position in Progressive by 0.7% in the third quarter. Eastern Bank now owns 8,416 shares of the insurance provider's stock valued at $1,745,000 after purchasing an additional 55 shares during the last quarter. Finally, Sunbelt Securities Inc. lifted its position in Progressive by 7.1% in the first quarter. Sunbelt Securities Inc. now owns 857 shares of the insurance provider's stock valued at $170,000 after purchasing an additional 57 shares during the last quarter. 85.34% of the stock is currently owned by institutional investors and hedge funds.

About Progressive

Progressive Corporation is an insurance holding company that provides personal and commercial insurance products in the United States. Its primary business is automobile insurance, serving consumers through direct channels, independent agents and other distribution partners.

The company offers coverage for personal vehicles, motorcycles, recreational vehicles, boats and other specialty vehicles. Its personal insurance portfolio also includes homeowners, renters, condominium and other property coverage, while its commercial business provides insurance for commercial vehicles and related risks.

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