Progress Software (NASDAQ:PRGS) Reaches New 1-Year Low - Should You Sell?

Key Points

• Progress Software's stock hit a new 52-week low of $47.31, closing at $47.72 amid trading on Friday with significant volume of 43,798 shares.
• Despite recent price drops, analysts have a consensus rating of "Moderate Buy" for the stock, with a price target of $73.33 and multiple buy ratings from prominent financial groups.
• The company reported a 35.6% year-over-year revenue increase for the last quarter, achieving $237.36 million and earning $1.40 EPS, surpassing analyst expectations.

Shares of Progress Software Corporation (NASDAQ:PRGS - Get Free Report) hit a new 52-week low on Friday . The company traded as low as $47.31 and last traded at $47.72, with a volume of 43798 shares. The stock had previously closed at $48.08.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on PRGS shares. 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 note on Tuesday, July 15th. DA Davidson boosted their price target on Progress Software from $70.00 to $75.00 and gave the stock a "buy" rating in a research note on Tuesday, July 1st. Jefferies Financial Group reiterated a "hold" rating on shares of Progress Software in a research report on Friday, June 27th. Guggenheim reiterated a "buy" rating and issued a $83.00 target price on shares of Progress Software in a research report on Friday, June 27th. Finally, Wedbush reiterated an "outperform" rating and issued a $75.00 target price on shares of Progress Software in a research report on Friday, June 27th. Two equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $73.33.

Progress Software Price Performance

The company has a market capitalization of $1.91 billion, a price-to-earnings ratio of 33.90, a P/E/G ratio of 2.18 and a beta of 0.71. The stock has a fifty day simple moving average of $56.54 and a 200-day simple moving average of $57.11. The company has a debt-to-equity ratio of 2.43, a current ratio of 0.43 and a quick ratio of 0.43.

Progress Software (NASDAQ:PRGS - Get Free Report) last announced its earnings results on Monday, June 30th. The software maker reported $1.40 earnings per share for the quarter, topping the consensus estimate of $1.30 by $0.10. The business had revenue of $237.36 million during the quarter, compared to the consensus estimate of $237.23 million. Progress Software had a return on equity of 43.72% and a net margin of 6.63%. The business's quarterly revenue was up 35.6% on a year-over-year basis. During the same period in the prior year, the company posted $1.09 EPS. On average, equities research analysts anticipate that Progress Software Corporation will post 4.01 EPS for the current year.

Insider Activity at Progress Software

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

Institutional Trading of Progress Software

Several large investors have recently made changes to their positions in the company. QRG Capital Management Inc. grew its holdings in Progress Software by 1.8% in the 1st quarter. QRG Capital Management Inc. now owns 10,607 shares of the software maker's stock valued at $546,000 after buying an additional 187 shares in the last quarter. Raymond James Financial Inc. purchased a new stake in Progress Software in the 4th quarter valued at $15,432,000. Nisa Investment Advisors LLC grew its holdings in Progress Software by 25.0% in the 1st quarter. Nisa Investment Advisors LLC now owns 1,629 shares of the software maker's stock valued at $84,000 after buying an additional 326 shares in the last quarter. Norges Bank purchased a new stake in Progress Software in the 4th quarter valued at $9,699,000. Finally, Cetera Investment Advisers grew its holdings in Progress Software by 8.3% in the 4th quarter. Cetera Investment Advisers now owns 4,796 shares of the software maker's stock valued at $312,000 after buying an additional 367 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.