Progressive (NYSE:PGR) Hits New 1-Year Low on Disappointing Earnings

Key Points

• Progressive's shares hit a new 52-week low at $218.14 following disappointing earnings, with EPS reported at $4.45, missing expectations of $5.08.
• The company also declared a quarterly dividend of $0.10 per share, reflecting an annualized yield of 0.2%.
• Analysts have varied opinions on Progressive, with target prices ranging from $252 to $303, and a consensus rating of "Hold".

Shares of The Progressive Corporation (NYSE:PGR - Get Free Report) hit a new 52-week low during trading on Wednesday following a dissappointing earnings announcement. The company traded as low as $219.96 and last traded at $218.14, with a volume of 1967118 shares changing hands. The stock had previously closed at $240.40.

The insurance provider reported $4.45 earnings per share (EPS) for the quarter, missing the consensus estimate of $5.08 by ($0.63). Progressive had a net margin of 12.66% and a return on equity of 35.37%. The company had revenue of $21.38 billion for the quarter, compared to analysts' expectations of $21.64 billion. During the same period in the prior year, the firm earned $3.58 earnings per share.

Progressive Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, October 10th. Shareholders of record on Thursday, October 2nd were issued a $0.10 dividend. The ex-dividend date was Thursday, October 2nd. This represents a $0.40 dividend on an annualized basis and a yield of 0.2%. Progressive's payout ratio is currently 2.25%.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on PGR. JPMorgan Chase & Co. upped their target price on shares of Progressive from $301.00 to $303.00 and gave the company an "overweight" rating in a research note on Thursday, October 9th. Cantor Fitzgerald upgraded shares of Progressive to a "hold" rating in a research report on Wednesday, August 13th. Evercore ISI decreased their target price on shares of Progressive from $275.00 to $273.00 and set an "in-line" rating for the company in a research report on Wednesday, October 1st. Jefferies Financial Group reduced their price target on shares of Progressive from $309.00 to $287.00 and set a "buy" rating for the company in a research note on Monday, August 11th. Finally, BMO Capital Markets set a $252.00 price target on shares of Progressive in a research note on Thursday, September 18th. Seven research analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $279.63.

Insider Activity

In other Progressive news, insider Karen Bailo sold 8,922 shares of the company's stock in a transaction that occurred on Monday, July 28th. The stock was sold at an average price of $249.24, for a total value of $2,223,719.28. Following the completion of the sale, the insider owned 32,346 shares of the company's stock, valued at $8,061,917.04. This represents a 21.62% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO John P. Sauerland sold 16,664 shares of the business's stock in a transaction dated Monday, July 28th. The shares were sold at an average price of $249.24, for a total transaction of $4,153,335.36. Following the transaction, the chief financial officer owned 228,024 shares in the company, valued at $56,832,701.76. This represents a 6.81% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 130,045 shares of company stock worth $31,997,390. Company insiders own 0.33% of the company's stock.

Institutional Investors Weigh In On Progressive

A number of large investors have recently made changes to their positions in PGR. Baron Silver Stevens Financial Advisors LLC bought a new stake in Progressive in the second quarter worth $306,000. State of Alaska Department of Revenue raised its stake in shares of Progressive by 2.7% in the first quarter. State of Alaska Department of Revenue now owns 68,644 shares of the insurance provider's stock worth $19,426,000 after purchasing an additional 1,800 shares during the last quarter. Trust Co. of Oklahoma purchased a new position in Progressive during the second quarter valued at approximately $439,000. Belmont Capital LLC acquired a new stake in Progressive in the first quarter valued at approximately $580,000. Finally, Zurich Insurance Group Ltd FI lifted its position in Progressive by 87.9% during the first quarter. Zurich Insurance Group Ltd FI now owns 414,183 shares of the insurance provider's stock worth $117,218,000 after buying an additional 193,800 shares in the last quarter. 85.34% of the stock is currently owned by institutional investors.

Progressive Price Performance

The company has a market cap of $128.65 billion, a PE ratio of 12.25, a P/E/G ratio of 1.31 and a beta of 0.32. The company has a quick ratio of 0.31, a current ratio of 0.31 and a debt-to-equity ratio of 0.21. The stock has a 50-day simple moving average of $245.05 and a 200 day simple moving average of $259.11.

About Progressive

The Progressive Corporation, an insurance holding company, provides personal and commercial auto, personal residential and commercial property, business related general liability, and other specialty property-casualty insurance products and related services in the United States. It operates in three segments: Personal Lines, Commercial Lines, and Property.

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