Upbound Group (NASDAQ:UPBD) Reaches New 12-Month Low - Should You Sell?

Key Points

• Upbound Group shares hit a new 52-week low of $15.23, with the stock down below both its 50-day and 200-day moving averages. Analysts maintain a consensus “Hold” rating, despite an average price target of $28.
• The company slightly exceeded quarterly EPS expectations, reporting $1.07 versus the $1.05 consensus, while revenue reached $1.16 billion and rose 0.5% year over year.
• Upbound declared a quarterly dividend of $0.39, equivalent to a 10.1% annualized yield; however, its payout ratio is elevated at 101.3%, which may raise sustainability concerns.

Upbound Group, Inc. (NASDAQ:UPBD - Get Free Report)'s share price hit a new 52-week low on Thursday. The stock traded as low as $15.26 and last traded at $15.23, with a volume of 133799 shares trading hands. The stock had previously closed at $15.70.

Analysts Set New Price Targets

A number of research analysts have commented on UPBD shares. Zacks Research raised Upbound Group from a "strong sell" rating to a "hold" rating in a report on Monday. TD Cowen reduced their price objective on Upbound Group from $29.00 to $28.00 and set a "buy" rating on the stock in a research note on Friday, July 31st. BTIG Research lowered shares of Upbound Group from a "buy" rating to a "neutral" rating and set a $28.00 target price for the company. in a research note on Friday, July 31st. Weiss Ratings cut shares of Upbound Group from a "hold (c)" rating to a "hold (c-)" rating in a report on Monday, September 21st. Finally, Wall Street Zen downgraded shares of Upbound Group from a "buy" rating to a "hold" rating in a research report on Saturday, August 1st. One equities research analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $28.00.

Upbound Group Stock Down 1.4%

The company has a current ratio of 3.22, a quick ratio of 0.97 and a debt-to-equity ratio of 1.94. The stock has a 50-day moving average of $18.71 and a 200-day moving average of $18.89. The firm has a market cap of $902.48 million, a price-to-earnings ratio of 10.02 and a beta of 1.77.

Upbound Group (NASDAQ:UPBD - Get Free Report) last posted its earnings results on Thursday, July 30th. The company reported $1.07 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.05 by $0.02. The company had revenue of $1.16 billion for the quarter, compared to analysts' expectations of $1.16 billion. Upbound Group had a return on equity of 34.53% and a net margin of 1.90%.The firm's quarterly revenue was up .5% compared to the same quarter last year. During the same period last 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, sell-side analysts forecast that Upbound Group, Inc. will post 4.15 EPS for the current fiscal year.

Upbound Group Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, October 27th. Shareholders of record on Tuesday, October 6th will be paid a $0.39 dividend. The ex-dividend date is Tuesday, October 6th. This represents a $1.56 annualized dividend and a dividend yield of 10.1%. Upbound Group's dividend payout ratio (DPR) is presently 101.30%.

Insider Activity at Upbound Group

In other Upbound Group news, EVP Anthony J. Blasquez sold 10,000 shares of Upbound Group 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 sale, the executive vice president owned 43,717 shares of the company's stock, valued at $824,065.45. The trade was a 18.62% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Jeffrey J. Brown purchased 2,295 shares of Upbound Group stock in a transaction on Tuesday, July 7th. The shares were acquired at an average price of $20.09 per share, with a total value of $46,106.55. Following the transaction, the director directly owned 96,681 shares in the company, valued at $1,942,321.29. This trade represents a 2.43% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders own 1.20% of the company's stock.

Institutional Investors Weigh In On Upbound Group

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. WINTON GROUP Ltd bought a new position in Upbound Group in the 2nd quarter valued at about $524,000. Engineers Gate Manager LP lifted its stake in shares of Upbound Group by 62.0% in the 2nd 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 acquired a new stake in shares of Upbound Group in the 2nd quarter worth approximately $76,000. IFP Advisors Inc boosted its holdings 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 acquiring an additional 910 shares in the last quarter. Finally, Allworth Financial LP increased its stake in shares of Upbound Group by 223.5% during the second quarter. Allworth Financial LP now owns 2,352 shares of the company's stock valued at $50,000 after acquiring an additional 1,625 shares during the period. 90.30% of the stock is currently owned by institutional investors.

About Upbound Group

Upbound Group, Inc is a consumer leasing and retail services company headquartered in Plano, Texas. The company operates through two primary brands: Rent-A-Center, a lease-to-own provider, and Acima, a technology-enabled point-of-sale leasing platform. Its services are designed to give consumers access to household and consumer products through flexible leasing arrangements, including options that may not require traditional credit.

Rent-A-Center offers furniture, appliances, electronics, computers, smartphones and other durable goods through company-operated and franchised stores, as well as digital channels.

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