Progress Software (NASDAQ:PRGS) Reaches New 12-Month Low - Here's Why

Key Points

• Progress Software (NASDAQ:PRGS) hit a new 52-week low at $41.05 during trading, closing at $41.11 with a trading volume of 459,788 shares.
• Several analysts have reinforced a buy rating for Progress Software, with a consensus price target of $73.33, despite recent price target reductions from firms like Citigroup.
• The company reported a 35.6% year-over-year revenue increase in its latest quarterly earnings, achieving an EPS of $1.40 against an expectation of $1.30.

Progress Software Corporation (NASDAQ:PRGS - Get Free Report) reached a new 52-week low during trading on Tuesday . The company traded as low as $41.05 and last traded at $41.11, with a volume of 459788 shares trading hands. The stock had previously closed at $42.25.

Wall Street Analyst Weigh In

PRGS has been the subject of a number of recent research reports. DA Davidson increased their price objective on Progress Software from $70.00 to $75.00 and gave the company a "buy" rating in a research report on Tuesday, July 1st. Guggenheim reaffirmed a "buy" rating and issued a $83.00 target price on shares of Progress Software in a research report on Friday, June 27th. Citigroup dropped their price target on Progress Software from $64.00 to $57.00 and set a "neutral" rating on the stock in a research report on Tuesday, July 15th. Jefferies Financial Group restated a "hold" rating on shares of Progress Software in a research report on Friday, June 27th. Finally, Wall Street Zen lowered shares of Progress Software from a "buy" rating to a "hold" rating in a research report on Saturday, September 13th. Four investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $73.33.

Progress Software Stock Down 3.0%

The company has a current ratio of 0.43, a quick ratio of 0.43 and a debt-to-equity ratio of 2.43. The stock's 50-day moving average price is $45.50 and its 200-day moving average price is $54.07. The company has a market cap of $1.77 billion, a P/E ratio of 31.28, a PEG ratio of 1.99 and a beta of 0.68.

Progress Software (NASDAQ:PRGS - Get Free Report) last issued its quarterly earnings data on Monday, June 30th. The software maker reported $1.40 EPS for the quarter, topping analysts' consensus estimates 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 return on equity of 43.72% and a net margin of 6.63%.The company's revenue for the quarter was up 35.6% on a year-over-year basis. During the same period in the previous year, the company 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. As a group, research analysts forecast that Progress Software Corporation will post 4.01 EPS for the current year.

Insider Buying and Selling

In other Progress Software news, Director Rainer Gawlick purchased 1,710 shares of the business's stock in a transaction on Tuesday, August 12th. The stock was acquired at an average cost of $43.48 per share, for a total transaction of $74,350.80. Following the completion of the transaction, the director directly owned 55,544 shares in the company, valued at approximately $2,415,053.12. This represents a 3.18% increase in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CFO Anthony Folger sold 5,529 shares of the firm's stock in a transaction dated Tuesday, July 8th. The shares were sold at an average price of $52.97, for a total value of $292,871.13. Following the transaction, the chief financial officer directly owned 43,559 shares in the company, valued at $2,307,320.23. This trade represents a 11.26% decrease in their ownership of the stock. The disclosure for this sale can be found here. 3.60% of the stock is owned by company insiders.

Institutional Investors Weigh In On Progress Software

Large investors have recently added to or reduced their stakes in the company. Cetera Investment Advisers lifted its holdings in Progress Software by 8.3% in the fourth quarter. Cetera Investment Advisers now owns 4,796 shares of the software maker's stock worth $312,000 after buying an additional 367 shares during the period. Squarepoint Ops LLC purchased a new stake in Progress Software in the fourth quarter worth about $606,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of Progress Software by 17.5% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 142,639 shares of the software maker's stock valued at $9,293,000 after purchasing an additional 21,289 shares in the last quarter. Mackenzie Financial Corp lifted its holdings in shares of Progress Software by 22.2% during the fourth quarter. Mackenzie Financial Corp now owns 36,562 shares of the software maker's stock valued at $2,382,000 after purchasing an additional 6,640 shares during the last quarter. Finally, Universal Beteiligungs und Servicegesellschaft mbH bought a new stake in shares of Progress Software in the 4th quarter worth approximately $7,966,000.

About Progress Software

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.

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