Upbound Group (NASDAQ:UPBD) Hits New 52-Week Low After Analyst Downgrade

Key Points

• Upbound Group shares fell to a new 52-week low of $15.10 after TD Cowen cut its price target from $28 to $27, though it maintained a Buy rating.
• Analyst sentiment is mixed, with the stock carrying an overall Hold rating and an average price target of $27.50; institutional investors own approximately 90.3% of shares.
• Upbound reported quarterly EPS of $1.07, slightly exceeding estimates, and announced a $0.39 quarterly dividend, equivalent to a 10.4% annualized yield.

Upbound Group, Inc. (NASDAQ:UPBD - Get Free Report) shares reached a new 52-week low on Wednesday after TD Cowen lowered their price target on the stock from $28.00 to $27.00. TD Cowen currently has a buy rating on the stock. Upbound Group traded as low as $15.10 and last traded at $15.13, with a volume of 159444 shares changing hands. The stock had previously closed at $15.36.

Several other research firms have also commented on UPBD. Zacks Research upgraded shares of Upbound Group from a "strong sell" rating to a "hold" rating in a research note on Monday, September 28th. BTIG Research downgraded Upbound Group from a "buy" rating to a "neutral" rating and set a $28.00 target price on the stock. in a research note on Friday, July 31st. Weiss Ratings lowered Upbound Group from a "hold (c)" rating to a "hold (c-)" rating in a report on Monday, September 21st. Finally, Wall Street Zen upgraded Upbound Group from a "hold" rating to a "buy" rating in a report on Saturday. One equities research analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $27.50.

Insider Activity

In other news, EVP Anthony Blasquez sold 10,000 shares of the stock in a transaction on Friday, August 21st. The stock was sold at an average price of $18.85, for a total transaction of $188,500.00. Following the completion of the transaction, the executive vice president owned 43,717 shares in the company, valued at approximately $824,065.45. This represents a 18.62% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 1.20% of the stock is currently owned by insiders.

Institutional Trading of Upbound Group

Several hedge funds and other institutional investors have recently modified their holdings of the business. CX Institutional bought a new stake in Upbound Group during the 3rd quarter valued at $4,619,000. WINTON GROUP Ltd purchased a new stake in shares of Upbound Group during the second quarter worth $524,000. Engineers Gate Manager LP boosted its holdings in shares of Upbound Group by 62.0% in the second quarter. Engineers Gate Manager LP now owns 58,810 shares of the company's stock worth $1,248,000 after acquiring an additional 22,500 shares during the period. Integrated Wealth Concepts LLC bought a new position in shares of Upbound Group in the second quarter worth $76,000. Finally, IFP Advisors Inc grew its position in shares of Upbound Group by 299.3% in the second quarter. IFP Advisors Inc now owns 1,214 shares of the company's stock valued at $26,000 after purchasing an additional 910 shares in the last quarter. Institutional investors own 90.30% of the company's stock.

Upbound Group Price Performance

The business has a fifty day moving average of $18.29 and a 200-day moving average of $18.82. The firm has a market cap of $878.27 million, a PE ratio of 9.78 and a beta of 1.78. The company has a current ratio of 3.22, a quick ratio of 0.97 and a debt-to-equity ratio of 1.94.

Upbound Group (NASDAQ:UPBD - Get Free Report) last announced its earnings results on Thursday, July 30th. The company reported $1.07 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.05 by $0.02. The business had revenue of $1.16 billion during the quarter, compared to analyst estimates of $1.16 billion. Upbound Group had a net margin of 1.90% and a return on equity of 34.53%. Upbound Group's revenue for the quarter was up .5% on a year-over-year basis. During the same period in the previous year, the business posted $1.12 earnings per share. Upbound Group has set its FY 2026 guidance at 4.000-4.350 EPS and its Q3 2026 guidance at 0.850-0.950 EPS. As a group, research analysts predict that Upbound Group, Inc. will post 4.15 earnings per share for the current year.

Upbound Group Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, October 27th. Investors of record on Tuesday, October 6th will be paid a $0.39 dividend. This represents a $1.56 dividend on an annualized basis and a yield of 10.4%. The ex-dividend date of this dividend is Tuesday, October 6th. Upbound Group's dividend payout ratio is currently 101.30%.

Upbound Group Company Profile

Upbound Group, Inc is a provider of branded leasing and alternative-purchase solutions for consumers. The company operates through a network of stores and digital channels, offering access to products such as furniture, appliances, consumer electronics, computers, smartphones and other household merchandise through lease-to-own and related payment arrangements.

Its principal brands include Rent-A-Center, which provides lease-to-own products through company-operated and franchised locations, and Acima, a technology-enabled point-of-sale leasing platform that connects consumers with participating retail merchants.

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