Progressive Sees Unusually Large Options Volume (NYSE:PGR)

Key Points

• Progressive saw unusually heavy options activity on Wednesday, with investors buying 3,167 call options, about 49% above the stock’s average call volume.
• Wall Street sentiment remains mixed: analysts have a consensus rating of Hold with an average price target of $238.11, though several firms still have Buy ratings and targets as high as $320.
• The stock fell to $193.65 and trades near its 52-week low, even after Progressive recently beat quarterly EPS expectations; the company also declared a quarterly dividend of $0.10 per share.

The Progressive Corporation (NYSE:PGR - Get Free Report) saw unusually large options trading activity on Wednesday. Investors purchased 3,167 call options on the company. This represents an increase of approximately 49% compared to the average volume of 2,119 call options.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on PGR. Royal Bank Of Canada set a $208.00 price target on shares of Progressive in a research note on Friday, May 22nd. Piper Sandler reiterated an "overweight" rating and issued a $259.00 price target on shares of Progressive in a research note on Monday, March 2nd. Bank of America dropped their price target on shares of Progressive from $325.00 to $320.00 and set a "buy" rating on the stock in a research note on Wednesday, May 20th. UBS Group upped their price target on shares of Progressive from $218.00 to $220.00 and gave the stock a "neutral" rating in a research note on Monday, March 23rd. Finally, Roth Mkm set a $235.00 price target on shares of Progressive in a research note on Thursday, February 19th. Six research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $238.11.

Insider Transactions at Progressive

In related news, CAO Carl G. Joyce sold 270 shares of the company's stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $206.50, for a total value of $55,755.00. Following the transaction, the chief accounting officer owned 558 shares in the company, valued at $115,227. The trade was a 32.61% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Karen Bailo sold 3,517 shares of the company's stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $212.00, for a total transaction of $745,604.00. Following the completion of the transaction, the insider owned 32,348 shares in the company, valued at approximately $6,857,776. The trade was a 9.81% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 3,928 shares of company stock worth $831,251. 0.32% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Progressive

Several institutional investors have recently made changes to their positions in PGR. Bard Associates Inc. bought a new stake in Progressive during the 4th quarter worth approximately $27,000. Dagco Inc. bought a new stake in Progressive during the 4th quarter worth approximately $28,000. Bogart Wealth LLC raised its stake in Progressive by 235.1% during the 1st quarter. Bogart Wealth LLC now owns 124 shares of the insurance provider's stock worth $25,000 after acquiring an additional 87 shares during the period. Ameriflex Group Inc. raised its stake in Progressive by 106.6% during the 3rd quarter. Ameriflex Group Inc. now owns 126 shares of the insurance provider's stock worth $31,000 after acquiring an additional 65 shares during the period. Finally, IFC & Insurance Marketing Inc. bought a new stake in Progressive during the 4th quarter worth approximately $29,000. Institutional investors own 85.34% of the company's stock.

Progressive Stock Performance

Shares of NYSE PGR traded down $3.17 during trading on Wednesday, reaching $193.65. 1,563,202 shares of the company traded hands, compared to its average volume of 3,228,005. The firm has a 50 day simple moving average of $199.48 and a 200-day simple moving average of $209.49. The company has a quick ratio of 0.27, a current ratio of 0.27 and a debt-to-equity ratio of 0.26. The stock has a market capitalization of $113.16 billion, a PE ratio of 9.84, a P/E/G ratio of 5.58 and a beta of 0.28. Progressive has a 52-week low of $189.20 and a 52-week high of $288.35.

Progressive (NYSE:PGR - Get Free Report) last announced its quarterly earnings results on Wednesday, April 15th. The insurance provider reported $4.80 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.67 by $0.13. The firm had revenue of $22.19 billion for the quarter, compared to the consensus estimate of $23.51 billion. Progressive had a net margin of 12.92% and a return on equity of 33.47%. The business's quarterly revenue was up 6.5% compared to the same quarter last year. During the same quarter last year, the firm posted $4.37 EPS. Equities research analysts anticipate that Progressive will post 16.36 earnings per share for the current year.

Progressive Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, July 10th. Stockholders of record on Thursday, July 2nd will be issued a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.2%. The ex-dividend date of this dividend is Thursday, July 2nd. Progressive's dividend payout ratio (DPR) is presently 2.03%.

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.

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