PROG (NYSE:PRG) Reaches New 1-Year Low Following Weak Earnings

Key Points

• PROG shares fell to a new 52-week low of $25.60 after the company reported quarterly EPS of $1.06, below the $1.09 analyst consensus, while revenue of $725.78 million also missed expectations.
• PROG declared a quarterly dividend of $0.14 per share, equivalent to $0.56 annually and a 2.1% yield, with a payout ratio of 15.47%.
• Despite the earnings miss and recent insider selling, analysts maintain a “Moderate Buy” consensus, with seven Buy ratings, three Holds, and an average price target of $47.81.

PROG Holdings, Inc (NYSE:PRG - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Wednesday following a weaker than expected earnings announcement. The stock traded as low as $25.60 and last traded at $25.54, with a volume of 43,215 shares traded. The stock had previously closed at $29.61.

The fintech holding company reported $1.06 EPS for the quarter, missing analysts' consensus estimates of $1.09 by ($0.03). The company had revenue of $725.78 million for the quarter, compared to analysts' expectations of $737.83 million.

PROG Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, September 3rd. Investors of record on Tuesday, August 18th were issued a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date of this dividend was Tuesday, August 18th. PROG's dividend payout ratio (DPR) is presently 15.47%.

Analyst Upgrades and Downgrades

PRG has been the topic of a number of research analyst reports. KeyCorp raised their price target on PROG from $45.00 to $50.00 and gave the company an "overweight" rating in a report on Thursday, July 30th. TD Cowen boosted their target price on PROG from $45.00 to $50.00 and gave the company a "buy" rating in a research note on Tuesday, July 7th. Weiss Ratings raised shares of PROG from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, October 16th. Wall Street Zen cut PROG from a "strong-buy" rating to a "buy" rating in a research report on Sunday, September 6th. Finally, Jefferies Financial Group decreased their target price on PROG from $60.00 to $50.00 and set a "buy" rating on the stock in a research report on Wednesday, October 7th. Seven investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, PROG has an average rating of "Moderate Buy" and a consensus target price of $47.81.

Insider Buying and Selling at PROG

In related news, CAO George M. Sewell sold 2,000 shares of PROG stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $45.53, for a total transaction of $91,060.00. Following the completion of the sale, the chief accounting officer directly owned 28,385 shares of the company's stock, valued at approximately $1,292,369.05. This trade represents a 6.58% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Michael King sold 1,070 shares of the company's stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $46.00, for a total value of $49,220.00. Following the sale, the insider owned 60,825 shares of the company's stock, valued at approximately $2,797,950. The trade was a 1.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 4,000 shares of company stock worth $183,060 over the last ninety days. 3.72% of the stock is currently owned by insiders.

Hedge Funds Weigh In On PROG

Several large investors have recently modified their holdings of the business. Allworth Financial LP raised its position in shares of PROG by 61.9% in the 2nd quarter. Allworth Financial LP now owns 897 shares of the fintech holding company's stock worth $42,000 after acquiring an additional 343 shares in the last quarter. HB Wealth Management LLC grew its position in shares of PROG by 1.7% during the 1st quarter. HB Wealth Management LLC now owns 21,470 shares of the fintech holding company's stock valued at $616,000 after acquiring an additional 359 shares during the period. BOKF NA raised its stake in shares of PROG by 3.2% in the third quarter. BOKF NA now owns 14,490 shares of the fintech holding company's stock valued at $448,000 after buying an additional 445 shares during the period. GAMMA Investing LLC lifted its holdings in PROG by 19.2% during the second quarter. GAMMA Investing LLC now owns 2,911 shares of the fintech holding company's stock valued at $136,000 after purchasing an additional 468 shares during the last quarter. Finally, Sterling Capital Management LLC boosted its holdings in PROG by 99.2% in the 3rd quarter. Sterling Capital Management LLC now owns 1,006 shares of the fintech holding company's stock worth $31,000 after buying an additional 501 shares during the period. Institutional investors own 97.92% of the company's stock.

PROG Stock Down 7.9%

The company has a 50-day moving average price of $34.47 and a two-hundred day moving average price of $35.61. The company has a market capitalization of $1.09 billion, a PE ratio of 7.50 and a beta of 1.78.

PROG Company Profile

PROG Holdings, Inc is a financial technology company that provides consumer payment and lease-to-own solutions through its operating businesses. Its services are designed to help consumers acquire household goods and other merchandise through retail stores, e-commerce websites and other merchant channels.

The company's primary business is Progressive Leasing, a lease-to-own provider that gives consumers an alternative to traditional credit when purchasing products such as furniture, appliances, electronics, mattresses and other household merchandise.

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