Fairholme Capital Management LLC Makes New Investment in The Progressive Corporation $PGR

Key Points

• Fairholme Capital Management opened a new position in Progressive during the fourth quarter, buying 25,600 shares worth about $5.83 million. The stake makes Progressive Fairholme’s 6th-largest holding and about 0.4% of its portfolio.
• Progressive reported quarterly earnings of $4.80 per share, topping analyst estimates, while revenue came in at $22.19 billion and rose 6.5% year over year. The company also posted strong profitability metrics, including a 12.92% net margin and 33.47% return on equity.
• The insurer announced a quarterly dividend of $0.10 per share, payable July 10, and reported that institutional ownership remains high at 85.34%. Recent insider sales and mixed analyst views suggest some caution even as the stock has drawn continued investor interest.

Fairholme Capital Management LLC bought a new position in The Progressive Corporation (NYSE:PGR - Free Report) during the 4th quarter, according to its most recent filing with the SEC. The institutional investor bought 25,600 shares of the insurance provider's stock, valued at approximately $5,830,000. Progressive makes up approximately 0.4% of Fairholme Capital Management LLC's investment portfolio, making the stock its 6th biggest holding.

Other institutional investors and hedge funds have also bought and sold shares of the company. Bard Associates Inc. purchased a new stake in shares of Progressive during the 4th quarter valued at $27,000. Dagco Inc. purchased a new stake in shares of Progressive during the 4th quarter valued at $28,000. IFC & Insurance Marketing Inc. purchased a new stake in shares of Progressive during the 4th quarter valued at $29,000. Ameriflex Group Inc. raised its position in shares of Progressive by 106.6% during the 3rd quarter. Ameriflex Group Inc. now owns 126 shares of the insurance provider's stock valued at $31,000 after buying an additional 65 shares in the last quarter. Finally, Entrust Financial LLC purchased a new stake in shares of Progressive during the 4th quarter valued at $33,000. 85.34% of the stock is currently owned by hedge funds and other institutional investors.

Progressive Stock Down 0.0%

Shares of Progressive stock opened at $204.64 on Thursday. The company has a market cap of $119.58 billion, a price-to-earnings ratio of 10.40, a price-to-earnings-growth ratio of 5.93 and a beta of 0.28. The company's 50 day moving average is $199.73 and its 200 day moving average is $207.42. The Progressive Corporation has a twelve month low of $189.20 and a twelve month high of $267.92. The company has a quick ratio of 0.27, a current ratio of 0.27 and a debt-to-equity ratio of 0.26.

Progressive (NYSE:PGR - Get Free Report) last issued its quarterly earnings data on Wednesday, April 15th. The insurance provider reported $4.80 earnings per share for the quarter, beating analysts' consensus estimates of $4.67 by $0.13. The company had revenue of $22.19 billion for the quarter, compared to the consensus estimate of $23.51 billion. Progressive had a net margin of 12.92% and a return on equity of 33.47%. The firm's revenue for the quarter was up 6.5% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $4.37 earnings per share. Research analysts anticipate that The Progressive Corporation will post 16.34 EPS for the current year.

Progressive Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, July 10th. Shareholders of record on Thursday, July 2nd will be issued a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a yield of 0.2%. The ex-dividend date of this dividend is Thursday, July 2nd. Progressive's dividend payout ratio is currently 2.03%.

Trending Headlines about Progressive

Here are the key news stories impacting Progressive this week:

• Positive Sentiment: Progressive reported solid May 2026 results, with net premiums written up 6%, net premiums earned up 10%, net income up 36%, and the combined ratio improving to 82.1 from 86.9 a year ago, signaling stronger profitability and underwriting performance. Progressive Reports May 2026 Results
• Positive Sentiment: Policies in force rose 8% year over year to 39.97 million, showing continued growth in Progressive’s auto and personal lines business. Progressive names new leadership structure as profit jumps
• Positive Sentiment: BofA reportedly raised its price target on PGR to $331 and kept a Buy rating, reinforcing the bullish case after the strong monthly update. BofA Raises PT on The Progressive Corporation (PGR) Stock
• Neutral Sentiment: Progressive announced management changes, including the planned January 2027 retirement of Personal Lines President Pat Callahan and new roles for Lori Niederst and Heather Day; the succession plan is orderly, but it adds a layer of transition risk. Progressive Announces Management Changes
• Negative Sentiment: Jim Cramer said the “group is under a lot of pressure,” reflecting broader investor concern that auto insurers like Progressive may face margin pressure if inflation or claims trends worsen. Jim Cramer on Progressive Corporation: “That Group Is Under a Lot of Pressure”

Insider Buying and Selling at Progressive

In other Progressive news, insider John Jo Murphy sold 5,916 shares of the company's stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $200.00, for a total value of $1,183,200.00. Following the completion of the transaction, the insider directly owned 41,290 shares in the company, valued at $8,258,000. This represents a 12.53% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven Broz sold 1,157 shares of the company's stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $200.00, for a total transaction of $231,400.00. Following the completion of the transaction, the insider owned 28,668 shares of the company's stock, valued at approximately $5,733,600. The trade was a 3.88% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 7,343 shares of company stock valued at $1,470,355. Insiders own 0.32% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on PGR. Argus upgraded shares of Progressive to a "hold" rating in a research report on Thursday, March 5th. Zacks Research upgraded shares of Progressive from a "strong sell" rating to a "hold" rating in a research report on Tuesday, February 24th. Morgan Stanley decreased their target price on shares of Progressive from $205.00 to $190.00 and set an "underweight" rating on the stock in a research report on Tuesday, March 31st. Barclays set a $247.00 target price on shares of Progressive in a research report on Wednesday, March 18th. Finally, Royal Bank Of Canada set a $208.00 target price on shares of Progressive in a research report on Friday, May 22nd. Six equities research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, Progressive presently has a consensus rating of "Hold" and an average target price of $238.11.

Progressive Profile

Progressive Corporation is a large U.S.-based property and casualty insurer that primarily underwrites personal auto insurance along with a broad suite of related products. Its offerings include coverage for private passenger automobiles, commercial auto fleets, motorcycles, boats and recreational vehicles, as well as homeowners, renters, umbrella and other specialty P&C products. Progressive also provides claims handling, risk management and related services to individual and commercial policyholders.

The company distributes its products through a mix of direct channels—online and by phone—and an extensive independent agent network.

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