Progressive (NYSE:PGR) Posts Quarterly Earnings Results, Beats Estimates By $0.95 EPS

Key Points

• Progressive beat quarterly expectations, reporting EPS of $5.67 versus the $4.72 consensus estimate and revenue of $23.61 billion, also ahead of forecasts. Revenue rose 5.0% from a year earlier.
• The stock fell sharply despite the earnings beat, dropping 8.1% to $208.26 in Wednesday trading as investors reacted to the results and broader market sentiment.
• Analysts remain cautious overall, with a consensus rating of “Hold” and an average price target of $236.74, even after several firms recently raised their targets.

Progressive (NYSE:PGR - Get Free Report) issued its quarterly earnings data on Wednesday. The insurance provider reported $5.67 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.72 by $0.95, Briefing.com reports. Progressive had a return on equity of 33.47% and a net margin of 12.92%.The company had revenue of $23.61 billion for the quarter, compared to analyst estimates of $21.25 billion. During the same quarter last year, the company posted $5.40 earnings per share. The business's quarterly revenue was up 5.0% compared to the same quarter last year.

Progressive Stock Down 8.1%

Progressive stock traded down $18.32 on Wednesday, hitting $208.26. 735,021 shares of the stock traded hands, compared to its average volume of 3,257,958. Progressive has a 1 year low of $189.20 and a 1 year high of $254.93. The firm has a market cap of $121.70 billion, a P/E ratio of 10.60, a price-to-earnings-growth ratio of 4.43 and a beta of 0.26. The business's fifty day simple moving average is $208.13 and its 200 day simple moving average is $206.80. The company has a current ratio of 0.27, a quick ratio of 0.27 and a debt-to-equity ratio of 0.26.

Progressive Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, July 10th. Investors of record on Thursday, July 2nd were given a dividend of $0.10 per share. The ex-dividend date was Thursday, July 2nd. This represents a $0.40 annualized dividend and a dividend yield of 0.2%. Progressive's payout ratio is currently 2.03%.

Analysts Set New Price Targets

A number of equities analysts have weighed in on PGR shares. Royal Bank Of Canada set a $208.00 target price on Progressive in a research note on Friday, May 22nd. Mizuho increased their target price on Progressive from $217.00 to $243.00 and gave the company a "neutral" rating in a research note on Thursday, July 9th. Keefe, Bruyette & Woods raised their price objective on Progressive from $210.00 to $231.00 and gave the company a "market perform" rating in a report on Wednesday, July 8th. HSBC boosted their target price on Progressive from $214.00 to $221.00 and gave the stock a "hold" rating in a research report on Monday, July 6th. Finally, Weiss Ratings cut shares of Progressive from a "hold (c+)" rating to a "hold (c)" rating in a research report on Wednesday, May 6th. Five analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, Progressive presently has a consensus rating of "Hold" and an average price target of $236.74.

Insider Buying and Selling at Progressive

In other Progressive news, insider Steven Broz sold 1,157 shares of the stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $204.76, for a total transaction of $236,907.32. Following the completion of the transaction, the insider owned 27,511 shares of the company's stock, valued at $5,633,152.36. This represents a 4.04% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider John Jo Murphy sold 5,916 shares of the company's stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $200.00, for a total value of $1,183,200.00. Following the transaction, the insider directly owned 41,290 shares in the company, valued at approximately $8,258,000. This represents a 12.53% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 15,230 shares of company stock worth $3,165,817. Company insiders own 0.32% of the company's stock.

Institutional Investors Weigh In On Progressive

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. IFC & Insurance Marketing Inc. purchased a new stake in shares of Progressive during the fourth quarter worth $29,000. Acumen Wealth Advisors LLC purchased a new position in Progressive in the 4th quarter valued at approximately $33,000. Swiss RE Ltd. acquired a new stake in shares of Progressive in the fourth quarter valued at $36,000. Darwin Wealth Management LLC purchased a new position in shares of Progressive in the 2nd quarter valued at about $54,000. Finally, Kemnay Advisory Services Inc. purchased a new stake in shares of Progressive during the fourth quarter worth approximately $53,000. 85.34% of the stock is owned by institutional investors and hedge funds.

About Progressive

Progressive Corporation is a large U.S.-based property and casualty insurer that primarily underwrites personal auto insurance along with a broad suite of related products. Its offerings include coverage for private passenger automobiles, commercial auto fleets, motorcycles, boats and recreational vehicles, as well as homeowners, renters, umbrella and other specialty P&C products. Progressive also provides claims handling, risk management and related services to individual and commercial policyholders.

The company distributes its products through a mix of direct channels—online and by phone—and an extensive independent agent network.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.