Short Interest in Upbound Group, Inc. (NASDAQ:UPBD) Increases By 112,863.0%

Key Points

• Upbound Group, Inc. (NASDAQ: UPBD) experienced a dramatic increase in short interest, surging 112,863.0% from June, reaching a total of 3,050,000 shares by July 15th.
• The company's shares dipped by 1.3% to $20.38, with notable trading activity of 916,022 shares during midday trading on Friday.
• Upbound Group recently announced a quarterly dividend of $0.39 per share, resulting in an annualized dividend yield of 7.7%.

Upbound Group, Inc. (NASDAQ:UPBD - Get Free Report) saw a significant growth in short interest in the month of July. As of July 15th, there was short interest totaling 3,050,000 shares, agrowthof112,863.0% from the June 30th total of 2,700 shares. Currently,5.9% of the company's shares are sold short. Based on an average daily trading volume, of 563,400 shares, the days-to-cover ratio is presently 5.4 days. Based on an average daily trading volume, of 563,400 shares, the days-to-cover ratio is presently 5.4 days. Currently,5.9% of the company's shares are sold short.

Upbound Group Stock Down 1.3%

Shares of UPBD traded down $0.26 during midday trading on Friday, hitting $20.38. The company had a trading volume of 916,022 shares, compared to its average volume of 567,724. The company's 50-day simple moving average is $24.88 and its 200-day simple moving average is $25.18. The company has a debt-to-equity ratio of 2.26, a quick ratio of 0.80 and a current ratio of 3.12. The firm has a market capitalization of $1.18 billion, a P/E ratio of 9.59 and a beta of 1.74. Upbound Group has a 1 year low of $19.65 and a 1 year high of $36.00.

Upbound Group (NASDAQ:UPBD - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The company reported $1.12 EPS for the quarter, topping the consensus estimate of $1.05 by $0.07. The company had revenue of $1.16 billion for the quarter, compared to analyst estimates of $1.14 billion. Upbound Group had a return on equity of 36.30% and a net margin of 2.74%. The firm's revenue was up 7.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.04 earnings per share. As a group, sell-side analysts expect that Upbound Group will post 4.28 EPS for the current year.

Upbound Group Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, July 8th. Stockholders of record on Tuesday, June 17th were given a $0.39 dividend. This represents a $1.56 annualized dividend and a dividend yield of 7.7%. The ex-dividend date was Tuesday, June 17th. Upbound Group's dividend payout ratio is currently 73.24%.

Insider Buying and Selling

In other Upbound Group news, Director Jeffrey J. Brown acquired 21,730 shares of the stock in a transaction that occurred on Tuesday, May 6th. The stock was bought at an average cost of $23.75 per share, with a total value of $516,087.50. Following the completion of the purchase, the director directly owned 21,730 shares in the company, valued at $516,087.50. The trade was a ∞ increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 2.60% of the stock is owned by insiders.

Institutional Trading of Upbound Group

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. increased its stake in Upbound Group by 3.6% during the first quarter. Vanguard Group Inc. now owns 7,025,821 shares of the company's stock worth $168,339,000 after acquiring an additional 244,746 shares during the last quarter. Dimensional Fund Advisors LP lifted its holdings in shares of Upbound Group by 4.1% in the 4th quarter. Dimensional Fund Advisors LP now owns 2,328,229 shares of the company's stock worth $67,913,000 after purchasing an additional 92,766 shares during the last quarter. LSV Asset Management increased its position in Upbound Group by 7.3% in the 1st quarter. LSV Asset Management now owns 1,689,151 shares of the company's stock valued at $40,472,000 after acquiring an additional 114,328 shares during the period. Charles Schwab Investment Management Inc. increased its position in shares of Upbound Group by 8.0% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 1,051,636 shares of the company's stock valued at $25,197,000 after purchasing an additional 77,450 shares during the period. Finally, Huber Capital Management LLC increased its position in shares of Upbound Group by 10.9% during the 1st quarter. Huber Capital Management LLC now owns 949,055 shares of the company's stock valued at $22,739,000 after purchasing an additional 92,908 shares during the period. 90.30% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Separately, Raymond James Financial reiterated an "outperform" rating and issued a $35.00 target price (down previously from $40.00) on shares of Upbound Group in a research report on Friday, May 2nd. Two analysts have rated the stock with a hold rating, two have given a buy rating and one has assigned a strong buy rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $34.50.

About Upbound Group

Upbound Group, Inc leases household durable goods to customers on a lease-to-own basis in the United States, Puerto Rico, and Mexico. It operates through four segments: Rent-A-Center, Acima, Mexico, and Franchising. The company's brands, such as Rent-A-Center and Acima that facilitate consumer transactions across a range of store-based and virtual channels.

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