Progress Software Corporation (NASDAQ:PRGS) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Analyst sentiment is moderately positive: Five of seven brokerages rate Progress Software a buy, while one rates it a hold and one a sell. The average 12-month price target is $50.50, above the stock’s reported $43.29 opening price.
• Progress Software exceeded quarterly expectations, reporting EPS of $1.62 versus the $1.46 consensus estimate and revenue of $253.47 million versus $242.74 million expected. Revenue increased 6.8% year over year.
• An executive vice president sold 10,597 shares for approximately $405,547 under a pre-arranged Rule 10b5-1 plan, while several institutional investors—including Arrowstreet Capital and LSV Asset Management—significantly increased their holdings.

Shares of Progress Software Corporation (NASDAQ:PRGS - Get Free Report) have earned a consensus rating of "Moderate Buy" from the seven brokerages that are covering the firm, Marketbeat.com reports. One equities research analyst has rated the stock with a sell rating, one has given a hold rating and five have given a buy rating to the company. The average 1-year target price among brokerages that have covered the stock in the last year is $50.50.

Several brokerages have commented on PRGS. Guggenheim reaffirmed a "buy" rating and issued a $83.00 price objective on shares of Progress Software in a research report on Wednesday, July 1st. DA Davidson boosted their target price on shares of Progress Software from $40.00 to $45.00 and gave the company a "buy" rating in a research note on Thursday, July 23rd. Weiss Ratings restated a "sell (d+)" rating on shares of Progress Software in a report on Tuesday, July 14th. Finally, Oppenheimer reduced their price target on shares of Progress Software from $57.00 to $50.00 and set an "outperform" rating on the stock in a research note on Wednesday, July 1st.

Progress Software Price Performance

PRGS stock opened at $43.29 on Tuesday. Progress Software has a 12 month low of $23.82 and a 12 month high of $47.37. The company has a current ratio of 0.81, a quick ratio of 0.81 and a debt-to-equity ratio of 2.55. The company has a 50-day moving average price of $36.13 and a 200 day moving average price of $34.39. The stock has a market cap of $1.78 billion, a PE ratio of 21.01, a P/E/G ratio of 1.80 and a beta of 0.80.

Progress Software (NASDAQ:PRGS - Get Free Report) last announced its quarterly earnings data on Tuesday, June 30th. The software maker reported $1.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.46 by $0.16. Progress Software had a net margin of 8.87% and a return on equity of 43.07%. The business had revenue of $253.47 million during the quarter, compared to the consensus estimate of $242.74 million. During the same quarter last year, the firm earned $1.40 earnings per share. The firm's quarterly revenue was up 6.8% compared to the same quarter last year. Progress Software has set its FY 2026 guidance at 6.090-6.210 EPS and its Q3 2026 guidance at 1.530-1.590 EPS. Equities research analysts anticipate that Progress Software will post 4.77 earnings per share for the current year.

Insider Buying and Selling

In other news, EVP Sundar Subramanian sold 10,597 shares of the firm's stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $38.27, for a total transaction of $405,547.19. Following the transaction, the executive vice president directly owned 18,370 shares of the company's stock, valued at approximately $703,019.90. This trade represents a 36.58% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 4.10% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Progress Software

Several institutional investors have recently made changes to their positions in PRGS. Arrowstreet Capital Limited Partnership raised its holdings in shares of Progress Software by 133.6% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,221,647 shares of the software maker's stock valued at $31,335,000 after purchasing an additional 698,611 shares in the last quarter. LSV Asset Management boosted its stake in shares of Progress Software by 171.2% during the fourth quarter. LSV Asset Management now owns 981,800 shares of the software maker's stock valued at $42,178,000 after purchasing an additional 619,800 shares in the last quarter. Rice Hall James & Associates LLC purchased a new position in Progress Software during the second quarter valued at approximately $19,149,000. Oaktop Capital Management II L.P. purchased a new position in Progress Software during the second quarter valued at approximately $17,079,000. Finally, Qube Research & Technologies Ltd bought a new position in Progress Software in the third quarter worth approximately $16,324,000.

About Progress Software

Progress Software NASDAQ: PRGS is a global provider of enterprise software designed to simplify and accelerate the delivery of business applications. The company's offerings span digital experience management, application development and deployment, data connectivity and integration, and predictive analytics. Progress supports organizations in building, deploying, and managing mission-critical applications across on-premises, cloud and hybrid environments, helping to reduce development complexity and operational overhead.

Key products in Progress's portfolio include Progress OpenEdge, a robust development and database platform for building transactional applications; Progress DataDirect, which enables high-performance connectivity to disparate data sources; Progress Sitefinity, a digital experience platform for content management and personalization; Progress Telerik, a suite of UI controls and developer tools; and Progress Kinvey, a serverless backend platform for mobile and web applications.

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