Upbound Group (NASDAQ:UPBD) Stock Price Breaks Above 200 Day Moving Average - Here's Why

Key Points

• Upbound Group shares moved above their 200-day moving average, reaching $20.13 and last trading near $19.98, signaling improved technical momentum.
• The company beat quarterly expectations with $1.01 earnings per share and $1.15 billion in revenue, although revenue declined 1.3% year over year.
• Analysts maintain a largely cautious outlook, with an average rating of “Hold” and a $27.50 target price; the stock also offers a 7.8% dividend yield, while an insider recently purchased shares.

Shares of Upbound Group, Inc. (NASDAQ:UPBD - Get Free Report) crossed above its two hundred day moving average during trading on Thursday. The stock has a two hundred day moving average of $18.87 and traded as high as $20.13. Upbound Group shares last traded at $19.98, with a volume of 3,153,023 shares changing hands.

Key Upbound Group News

Here are the key news stories impacting Upbound Group this week:

• Positive Sentiment: Quarterly earnings and revenue beat estimates: Upbound reported earnings of $1.01 per share, ahead of consensus estimates ranging from $0.89 to $0.91. Revenue of $1.15 billion also exceeded expectations of approximately $1.12 billion. Upbound Group Tops Q3 Earnings and Revenue Estimates
• Positive Sentiment: Strong investor-relevant profitability: Earnings increased from $1.00 per share in the year-earlier quarter, while the company reported a 34.53% return on equity. The results suggest continued earnings resilience despite a challenging revenue environment. Upbound Group Third Quarter Earnings Report
• Positive Sentiment: Insider buying provides a confidence signal: Director Jeffrey Brown purchased 2,764 shares for approximately $47,016, increasing his direct stake by 2.88%. While not a guarantee of future performance, the purchase may reinforce sentiment following the earnings report. Jeffrey Brown Insider Transaction
• Neutral Sentiment: Management highlighted cash, growth and risks: The Q3 earnings call focused on the company’s cash position and growth opportunities, while also acknowledging risks that could affect future results. Investors will likely look for additional detail on the company’s outlook and execution. Upbound Group Earnings Call Highlights
• Negative Sentiment: Revenue declined year over year: Quarterly revenue fell 1.3% from the prior-year period, indicating that the earnings outperformance was not accompanied by top-line growth. Continued revenue pressure could limit the durability of the stock’s positive reaction.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on UPBD. TD Cowen lowered their price target on shares of Upbound Group from $28.00 to $27.00 and set a "buy" rating on the stock in a report on Tuesday, October 6th. Zacks Research raised shares of Upbound Group from a "strong sell" rating to a "hold" rating in a research note on Monday, September 28th. Weiss Ratings lowered shares of Upbound Group from a "hold (c)" rating to a "hold (c-)" rating in a report on Monday, September 21st. Wall Street Zen downgraded shares of Upbound Group from a "buy" rating to a "hold" rating in a report on Saturday, October 24th. Finally, BTIG Research downgraded Upbound Group from a "buy" rating to a "neutral" rating and set a $28.00 price objective on the stock. in a research report on Friday, July 31st. One research analyst has rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Hold" and an average target price of $27.50.

Upbound Group Stock Performance

The stock has a market cap of $1.16 billion, a PE ratio of 12.97 and a beta of 1.78. The company has a fifty day moving average price of $17.19 and a 200 day moving average price of $18.87. The company has a quick ratio of 0.97, a current ratio of 3.22 and a debt-to-equity ratio of 1.94.

Upbound Group (NASDAQ:UPBD - Get Free Report) last announced its quarterly earnings results on Thursday, October 29th. The company reported $1.01 EPS for the quarter, topping analysts' consensus estimates of $0.91 by $0.10. Upbound Group had a return on equity of 34.53% and a net margin of 1.90%. The business had revenue of $1.15 billion for the quarter, compared to analysts' expectations of $1.12 billion. During the same period in the previous year, the firm earned $1.00 EPS. The business's quarterly revenue was down 1.3% on a year-over-year basis. Analysts expect that Upbound Group, Inc. will post 4.20 earnings per share for the current year.

Upbound Group Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, October 27th. Investors of record on Tuesday, October 6th were issued a dividend of $0.39 per share. This represents a $1.56 dividend on an annualized basis and a yield of 7.8%. The ex-dividend date was Tuesday, October 6th. Upbound Group's dividend payout ratio is currently 101.30%.

Insiders Place Their Bets

In other news, Director Jeffrey Brown purchased 2,764 shares of the company's stock in a transaction on Tuesday, October 27th. The stock was acquired at an average price of $17.01 per share, with a total value of $47,015.64. Following the transaction, the director directly owned 98,898 shares of the company's stock, valued at approximately $1,682,254.98. This represents a 2.88% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Anthony Blasquez sold 10,000 shares of the stock in a transaction on Friday, August 21st. The shares were sold at an average price of $18.85, for a total transaction of $188,500.00. Following the sale, the executive vice president directly owned 43,717 shares of the company's stock, valued at $824,065.45. The trade was a 18.62% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 1.20% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in UPBD. IFP Advisors Inc boosted its stake in Upbound Group by 299.3% during the second quarter. IFP Advisors Inc now owns 1,214 shares of the company's stock worth $26,000 after acquiring an additional 910 shares in the last quarter. Quantbot Technologies LP purchased a new stake in Upbound Group in the second quarter worth about $46,000. Allworth Financial LP bought a new position in shares of Upbound Group during the second quarter valued at approximately $50,000. Signaturefd LLC increased its stake in shares of Upbound Group by 74.5% during the third quarter. Signaturefd LLC now owns 3,050 shares of the company's stock valued at $48,000 after purchasing an additional 1,302 shares in the last quarter. Finally, GAMMA Investing LLC increased its stake in shares of Upbound Group by 18.2% during the second quarter. GAMMA Investing LLC now owns 3,360 shares of the company's stock valued at $71,000 after purchasing an additional 518 shares in the last quarter. 90.30% of the stock is owned by hedge funds and other institutional investors.

About Upbound Group

Upbound Group, Inc is a provider of consumer leasing and retail solutions, operating primarily through its Rent-A-Center and Acima brands. The company enables customers to obtain merchandise through flexible lease-to-own agreements and related payment options, serving consumers who may prefer alternatives to traditional retail financing.

Its Rent-A-Center business operates company-owned and franchised locations, as well as digital channels, offering furniture, appliances, electronics, computers, smartphones and other household goods.

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