DA Davidson Reduces Earnings Estimates for Progress Software

Key Points

• DA Davidson has reduced Progress Software's earnings per share estimate for FY2026 from $4.53 to $4.40, while maintaining a "Buy" rating and a price target of $75.00.
• Progress Software's latest earnings report showed an EPS of $1.40, exceeding analysts' expectations of $1.30, with a substantial year-over-year revenue increase of 35.6%.
• Recent analyst reviews have been mixed, with some lowering ratings and price targets, but a majority still maintain a "Buy" rating, reflecting a current average price target of $70.00.

Progress Software Corporation (NASDAQ:PRGS - Free Report) - Equities researchers at DA Davidson cut their FY2026 earnings per share (EPS) estimates for shares of Progress Software in a report issued on Tuesday, September 30th. DA Davidson analyst L. Schreiner now expects that the software maker will earn $4.40 per share for the year, down from their prior forecast of $4.53. DA Davidson currently has a "Buy" rating and a $75.00 price objective on the stock. The consensus estimate for Progress Software's current full-year earnings is $4.01 per share.

Progress Software (NASDAQ:PRGS - Get Free Report) last announced its earnings results on Monday, June 30th. The software maker reported $1.40 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.30 by $0.10. Progress Software had a return on equity of 43.68% and a net margin of 5.16%.The company had revenue of $237.36 million for the quarter, compared to analyst estimates of $237.23 million. During the same period in the prior year, the company posted $1.09 EPS. Progress Software's quarterly revenue was up 35.6% on a year-over-year basis.

Other equities research analysts have also issued reports about the company. Wall Street Zen lowered Progress Software from a "buy" rating to a "hold" rating in a research report on Saturday, September 13th. Jefferies Financial Group dropped their price target on Progress Software from $60.00 to $50.00 and set a "hold" rating on the stock in a research report on Tuesday. Guggenheim reissued a "buy" rating and set a $83.00 price target on shares of Progress Software in a research report on Friday, June 27th. Wedbush reissued an "outperform" rating and set a $75.00 price target on shares of Progress Software in a research report on Friday, June 27th. Finally, Citigroup dropped their price target on Progress Software from $64.00 to $57.00 and set a "neutral" rating on the stock in a research report on Tuesday, July 15th. Four equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, Progress Software presently has an average rating of "Moderate Buy" and an average target price of $70.00.

Progress Software Stock Performance

Shares of PRGS opened at $45.22 on Thursday. The business's 50 day moving average is $44.67 and its two-hundred day moving average is $53.47. Progress Software has a 52-week low of $40.29 and a 52-week high of $70.56. The firm has a market cap of $1.94 billion, a price-to-earnings ratio of 41.11, a PEG ratio of 2.05 and a beta of 0.67. The company has a quick ratio of 0.43, a current ratio of 0.44 and a debt-to-equity ratio of 2.22.

Insiders Place Their Bets

In other Progress Software news, Director David Krall purchased 5,125 shares of the firm's stock in a transaction dated Wednesday, July 23rd. The stock was bought at an average price of $48.90 per share, with a total value of $250,612.50. Following the completion of the purchase, the director owned 100,090 shares in the company, valued at $4,894,401. This trade represents a 5.40% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Rainer Gawlick purchased 1,710 shares of the firm's stock in a transaction dated Tuesday, August 12th. The stock was acquired at an average cost of $43.48 per share, with a total value of $74,350.80. Following the purchase, the director owned 55,544 shares of the company's stock, valued at approximately $2,415,053.12. This represents a 3.18% increase in their position. The disclosure for this purchase can be found here. 3.40% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. Squarepoint Ops LLC acquired a new stake in shares of Progress Software in the fourth quarter valued at $606,000. GAMMA Investing LLC lifted its holdings in shares of Progress Software by 2,620.9% in the first quarter. GAMMA Investing LLC now owns 47,235 shares of the software maker's stock valued at $2,433,000 after buying an additional 45,499 shares during the period. Rhumbline Advisers lifted its holdings in shares of Progress Software by 1.8% in the first quarter. Rhumbline Advisers now owns 121,063 shares of the software maker's stock valued at $6,236,000 after buying an additional 2,193 shares during the period. Harbor Capital Advisors Inc. lifted its holdings in shares of Progress Software by 19.7% in the first quarter. Harbor Capital Advisors Inc. now owns 10,286 shares of the software maker's stock valued at $530,000 after buying an additional 1,692 shares during the period. Finally, Exchange Traded Concepts LLC lifted its holdings in shares of Progress Software by 5.4% in the first quarter. Exchange Traded Concepts LLC now owns 32,499 shares of the software maker's stock valued at $1,674,000 after buying an additional 1,679 shares during the period.

About Progress Software

Progress Software Corporation develops, deploys, and manages business applications in the United States and internationally. The company offers OpenEdge, an application development platform for running business-critical applications; Chef, a DevOps/DevSecOps automation software; Developer Tools that consists of software development tooling collection, including .NET and JavaScript UI components for web, desktop and mobile applications, reporting and report management tools, and automated testing and mocking tools; Kemp LoadMaster, an application delivery and security product offering cloud-native, and virtual and hardware load balancers; and Sitefinity, a digital experience platform foundation delivering intelligent and ROI-driving tools for marketers.

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