Upbound Group (NASDAQ:UPBD) Stock Price Up 8.1% - Here's What Happened

Key Points

• Upbound Group shares rose 8.1% to approximately $22.38 in mid-day trading, though volume was 76% below the average session level.
• The company reported quarterly EPS of $1.01, beating estimates of $0.91, while revenue of $1.15 billion also exceeded expectations; revenue nevertheless declined 1.3% year over year.
• Analysts maintain a consensus “Hold” rating with a $27 price target. Upbound also pays a quarterly dividend of $0.39, equivalent to a 6.8% annualized yield.

Upbound Group, Inc. (NASDAQ:UPBD - Get Free Report) traded up 8.1% during mid-day trading on Monday. The company traded as high as $22.40 and last traded at $22.3750. Approximately 220,106 shares changed hands during trading, a decline of 76% from the average session volume of 926,410 shares. The stock had previously closed at $20.70.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on UPBD. Wall Street Zen cut shares of Upbound Group from a "buy" rating to a "hold" rating in a report on Saturday, October 24th. TD Cowen dropped their price objective on shares of Upbound Group from $27.00 to $26.00 and set a "buy" rating for the company in a research note on Friday. Zacks Research raised shares of Upbound Group from a "strong sell" rating to a "hold" rating in a report on Monday, September 28th. Weiss Ratings downgraded Upbound Group from a "hold (c)" rating to a "hold (c-)" rating in a research report on Monday, September 21st. Finally, BTIG Research cut shares of Upbound Group from a "buy" rating to a "neutral" rating and set a $28.00 price objective for the company. in a research report on Friday, July 31st. One 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 company currently has a consensus rating of "Hold" and a consensus price target of $27.00.

Upbound Group Trading Up 10.3%

The company has a debt-to-equity ratio of 1.80, a current ratio of 3.22 and a quick ratio of 0.97. The stock has a market cap of $1.33 billion, a price-to-earnings ratio of 12.02 and a beta of 1.79. The business's 50 day moving average is $17.23 and its 200 day moving average is $18.88.

Upbound Group (NASDAQ:UPBD - Get Free Report) last announced its quarterly earnings results on Thursday, October 29th. The company reported $1.01 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.91 by $0.10. Upbound Group had a return on equity of 33.81% and a net margin of 2.36%. The firm had revenue of $1.15 billion during the quarter, compared to the consensus estimate of $1.12 billion. During the same period in the prior year, the company posted $1.00 earnings per share. The firm's quarterly revenue was down 1.3% compared to the same quarter last year. As a group, equities analysts expect that Upbound Group, Inc. will post 4.22 earnings per share for the current fiscal year.

Upbound Group Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, October 27th. Investors of record on Tuesday, October 6th were given a $0.39 dividend. The ex-dividend date was Tuesday, October 6th. This represents a $1.56 dividend on an annualized basis and a yield of 6.8%. Upbound Group's dividend payout ratio (DPR) is presently 82.11%.

Insider Buying and Selling

In related news, EVP Anthony Blasquez sold 10,000 shares of the company's 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 transaction, the executive vice president owned 43,717 shares of the company's stock, valued at $824,065.45. This represents a 18.62% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Jeffrey Brown purchased 2,764 shares of the business's stock in a transaction dated Tuesday, October 27th. The stock was bought at an average price of $17.01 per share, with a total value of $47,015.64. Following the acquisition, the director directly owned 98,898 shares in the company, valued at approximately $1,682,254.98. This represents a 2.88% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 1.20% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. One Way Holdings LLC purchased a new position in Upbound Group in the 3rd quarter valued at about $5,610,000. Vise Technologies Inc. purchased a new stake in Upbound Group during the third quarter valued at about $172,000. Summit Global Investments increased its position in Upbound Group by 5.3% during the 3rd quarter. Summit Global Investments now owns 38,648 shares of the company's stock worth $607,000 after purchasing an additional 1,948 shares in the last quarter. State of Wyoming acquired a new position in shares of Upbound Group during the 3rd quarter valued at $231,000. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al boosted its position in shares of Upbound Group by 11.7% in the third quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 20,000 shares of the company's stock worth $314,000 after buying an additional 2,100 shares during the period. 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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