Progress Software (NASDAQ:PRGS) Stock Rating Lowered by Wall Street Zen

Key Points

• Progress Software has been downgraded from a "buy" to a "hold" rating by Wall Street Zen, reflecting changing analyst sentiment about the stock.
• Despite the downgrade, analysts have mixed views; four have rated the stock as a Buy while two maintain Hold ratings, with an average price target of $73.33.
• The company's recent earnings report revealed a 35.6% increase in revenue year-over-year, coupled with an EPS of $1.40, beating analyst estimates.

Progress Software (NASDAQ:PRGS - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Saturday.

Several other research analysts have also commented on the stock. Wedbush reiterated an "outperform" rating and set a $75.00 price objective on shares of Progress Software in a research note on Friday, June 27th. Guggenheim reissued a "buy" rating and set a $83.00 target price on shares of Progress Software in a research report on Friday, June 27th. Citigroup dropped their target price on shares of Progress Software from $64.00 to $57.00 and set a "neutral" rating on the stock in a research report on Tuesday, July 15th. DA Davidson boosted their target price on shares of Progress Software from $70.00 to $75.00 and gave the stock a "buy" rating in a research report on Tuesday, July 1st. Finally, Jefferies Financial Group reissued a "hold" rating on shares of Progress Software in a research report on Friday, June 27th. Four equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $73.33.

Progress Software Stock Up 3.7%

Shares of NASDAQ PRGS traded up $1.54 during trading hours on Friday, hitting $43.45. 822,318 shares of the stock were exchanged, compared to its average volume of 593,165. The company has a quick ratio of 0.43, a current ratio of 0.43 and a debt-to-equity ratio of 2.43. The company has a market cap of $1.87 billion, a PE ratio of 33.17, a PEG ratio of 1.98 and a beta of 0.68. The firm has a fifty day moving average price of $45.79 and a 200-day moving average price of $54.28. Progress Software has a 12 month low of $41.25 and a 12 month high of $70.56.

Progress Software (NASDAQ:PRGS - Get Free Report) last posted its quarterly earnings data on Monday, June 30th. The software maker reported $1.40 EPS for the quarter, topping the consensus estimate of $1.30 by $0.10. The firm had revenue of $237.36 million during the quarter, compared to analyst estimates of $237.23 million. Progress Software had a net margin of 6.63% and a return on equity of 43.72%. Progress Software's revenue was up 35.6% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.09 EPS. Progress Software has set its FY 2025 guidance at 5.280-5.400 EPS. Q3 2025 guidance at 1.280-1.340 EPS. On average, sell-side analysts expect that Progress Software will post 4.01 EPS for the current year.

Insider Activity

In other news, CFO Anthony Folger sold 5,529 shares of the company's stock in a transaction on Tuesday, July 8th. The shares were sold at an average price of $52.97, for a total value of $292,871.13. Following the sale, the chief financial officer directly owned 43,559 shares of the company's stock, valued at $2,307,320.23. This represents a 11.26% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director David Krall purchased 5,125 shares of the stock in a transaction that occurred on Wednesday, July 23rd. The shares were purchased at an average cost of $48.90 per share, for a total transaction of $250,612.50. Following the completion of the acquisition, the director directly owned 100,090 shares of the company's stock, valued at $4,894,401. This represents a 5.40% increase in their position. The disclosure for this purchase can be found here. Insiders own 3.40% of the company's stock.

Institutional Trading of Progress Software

Hedge funds have recently added to or reduced their stakes in the company. Maseco LLP purchased a new stake in Progress Software during the second quarter worth $28,000. Quaker Wealth Management LLC lifted its holdings in Progress Software by 200.0% during the second quarter. Quaker Wealth Management LLC now owns 450 shares of the software maker's stock valued at $29,000 after purchasing an additional 900 shares in the last quarter. Orion Capital Management LLC purchased a new position in Progress Software during the fourth quarter valued at $33,000. Elevation Point Wealth Partners LLC purchased a new position in Progress Software during the second quarter valued at $41,000. Finally, Osaic Holdings Inc. lifted its holdings in Progress Software by 183.0% during the second quarter. Osaic Holdings Inc. now owns 985 shares of the software maker's stock valued at $62,000 after purchasing an additional 637 shares in the last quarter.

Progress Software Company Profile

Progress Software Corporation develops, deploys, and manages business applications in the United States and internationally. The company offers OpenEdge, an application development platform for running business-critical applications; Chef, a DevOps/DevSecOps automation software; Developer Tools that consists of software development tooling collection, including .NET and JavaScript UI components for web, desktop and mobile applications, reporting and report management tools, and automated testing and mocking tools; Kemp LoadMaster, an application delivery and security product offering cloud-native, and virtual and hardware load balancers; and Sitefinity, a digital experience platform foundation delivering intelligent and ROI-driving tools for marketers.