Progress Software's (PRGS) Buy Rating Reiterated at Guggenheim

Key Points

• Guggenheim reiterated a Buy rating on Progress Software and set an $83 price target, implying more than 100% upside from the prior close.
• Progress Software beat quarterly expectations, reporting EPS of $1.62 and revenue of $253.47 million, both above analyst estimates, with revenue rising 6.8% year over year.
• Management raised guidance for FY2026 EPS to $6.09-$6.21 and Q3 EPS to $1.53-$1.59, while analysts overall still rate the stock a Moderate Buy despite some recent target cuts.

Progress Software (NASDAQ:PRGS - Get Free Report)'s stock had its "buy" rating reiterated by equities research analysts at Guggenheim in a research note issued to investors on Wednesday,Benzinga reports. They presently have a $83.00 price target on the software maker's stock. Guggenheim's price target would indicate a potential upside of 106.52% from the stock's previous close.

A number of other equities analysts have also commented on the company. Wedbush reduced their price objective on Progress Software from $65.00 to $45.00 and set an "outperform" rating on the stock in a research note on Tuesday, March 31st. Oppenheimer decreased their target price on Progress Software from $57.00 to $50.00 and set an "outperform" rating for the company in a research report on Wednesday. Citigroup cut their price target on shares of Progress Software from $60.00 to $46.00 and set a "buy" rating on the stock in a research report on Wednesday, April 1st. DA Davidson reduced their price objective on shares of Progress Software from $70.00 to $50.00 and set a "buy" rating on the stock in a research note on Wednesday, March 25th. Finally, Weiss Ratings downgraded shares of Progress Software from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Thursday, April 16th. Five investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $51.33.

Progress Software Price Performance

NASDAQ PRGS traded up $6.61 on Wednesday, reaching $40.19. The company's stock had a trading volume of 1,887,364 shares, compared to its average volume of 987,330. Progress Software has a 52 week low of $23.82 and a 52 week high of $56.58. The company has a current ratio of 0.47, a quick ratio of 0.47 and a debt-to-equity ratio of 1.97. The firm has a market cap of $1.69 billion, a PE ratio of 20.52, a price-to-earnings-growth ratio of 1.45 and a beta of 0.83. The business has a 50-day moving average price of $29.97 and a 200 day moving average price of $34.96.

Progress Software (NASDAQ:PRGS - Get Free Report) last released its quarterly earnings data on Tuesday, June 30th. The software maker reported $1.62 earnings per share for the quarter, beating analysts' consensus estimates of $1.45 by $0.17. Progress Software had a return on equity of 43.67% and a net margin of 8.61%.The company had revenue of $253.47 million for the quarter, compared to the consensus estimate of $242.74 million. During the same period in the previous year, the business earned $1.40 earnings per share. The company's quarterly revenue was up 6.8% on a year-over-year basis. 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. Sell-side analysts expect that Progress Software will post 4.68 EPS for the current year.

Hedge Funds Weigh In On Progress Software

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Dimensional Fund Advisors LP grew its holdings in shares of Progress Software by 10.9% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,233,830 shares of the software maker's stock worth $31,659,000 after purchasing an additional 121,314 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its stake in shares of Progress Software by 133.6% during the first quarter. Arrowstreet Capital Limited Partnership now owns 1,221,647 shares of the software maker's stock valued at $31,335,000 after acquiring an additional 698,611 shares during the last quarter. Geode Capital Management LLC grew its stake in shares of Progress Software by 0.6% in the fourth quarter. Geode Capital Management LLC now owns 1,081,487 shares of the software maker's stock worth $46,468,000 after purchasing an additional 6,095 shares during the last quarter. The Manufacturers Life Insurance Company grew its position in shares of Progress Software by 15.0% in the 1st quarter. The Manufacturers Life Insurance Company now owns 1,070,327 shares of the software maker's stock valued at $27,454,000 after buying an additional 139,257 shares during the last quarter. Finally, LSV Asset Management raised its position 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 worth $42,178,000 after acquiring an additional 619,800 shares during the last quarter.

Trending Headlines about Progress Software

Here are the key news stories impacting Progress Software this week:

• Positive Sentiment: Progress Software beat Q2 estimates, reporting EPS of $1.62 on revenue of $253.47 million, both above analyst expectations, and said quarterly revenue rose 6.8% year over year.
• Positive Sentiment: The company lifted its full-year FY2026 EPS guidance to $6.09-$6.21 and Q3 EPS guidance to $1.53-$1.59, signaling management sees continued momentum ahead.
• Positive Sentiment: Management highlighted AI demand as a growth driver for its data, workflow and infrastructure platforms, and separately announced Progress Chef Enterprise Management for NVIDIA DGX Spark, reinforcing its AI product strategy.
• Neutral Sentiment: Oppenheimer lowered its price target on PRGS from $57 to $50, but kept an “outperform” rating, suggesting the stock still has upside from current levels.
• Neutral Sentiment: Commentary from analysts also noted the stock had been under pressure earlier in the year and now trades at a valuation some see as attractive, though that view is more interpretive than a direct catalyst.

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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