Traders Purchase Large Volume of Progress Software Call Options (NASDAQ:PRGS)

Key Points

• Traders purchased a significant volume of 6,757 call options for Progress Software, marking a 316% increase from its average daily volume.
• Analysts have set varied price targets for Progress Software, with Guggenheim issuing a $83.00 buy target and Jefferies reducing theirs to $50.00 hold rating, leading to an average target of $70.00.
• Insider activity includes substantial purchases by directors, notably David Krall acquiring 5,125 shares, reflecting a growing confidence in the company's future performance.

Progress Software Corporation (NASDAQ:PRGS - Get Free Report) was the target of some unusual options trading on Tuesday. Traders purchased 6,757 call options on the company. This represents an increase of 316% compared to the average daily volume of 1,625 call options.

Analysts Set New Price Targets

PRGS has been the subject of several analyst reports. Guggenheim reissued a "buy" rating and issued a $83.00 price target on shares of Progress Software in a research note on Friday, June 27th. Jefferies Financial Group decreased their price target on Progress Software from $60.00 to $50.00 and set a "hold" rating on the stock in a research note on Tuesday. DA Davidson restated a "buy" rating and issued a $75.00 price objective on shares of Progress Software in a report on Tuesday. Wall Street Zen downgraded shares of Progress Software from a "buy" rating to a "hold" rating in a research note on Saturday, September 13th. Finally, Wedbush reaffirmed an "outperform" rating and set a $75.00 price objective on shares of Progress Software in a research report on Friday, June 27th. Four equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $70.00.

Insider Activity at Progress Software

In related news, Director David Krall bought 5,125 shares of the business's stock in a transaction on Wednesday, July 23rd. The stock was acquired at an average cost of $48.90 per share, with a total value of $250,612.50. Following the purchase, the director directly owned 100,090 shares of the company's stock, valued at $4,894,401. The trade was a 5.40% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Rainer Gawlick purchased 1,710 shares of the stock in a transaction dated Tuesday, August 12th. The shares were purchased at an average cost of $43.48 per share, for a total transaction of $74,350.80. Following the transaction, the director owned 55,544 shares in the company, valued at approximately $2,415,053.12. The trade was a 3.18% increase in their position. The disclosure for this purchase can be found here. Insiders own 3.40% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Maseco LLP acquired a new position in Progress Software during the 2nd quarter worth approximately $28,000. Quaker Wealth Management LLC raised its holdings in shares of Progress Software by 200.0% in the 2nd quarter. Quaker Wealth Management LLC now owns 450 shares of the software maker's stock valued at $29,000 after purchasing an additional 900 shares in the last quarter. Elevation Point Wealth Partners LLC purchased a new stake in shares of Progress Software during the 2nd quarter worth $41,000. Osaic Holdings Inc. grew its stake in shares of Progress Software by 183.0% during the second quarter. Osaic Holdings Inc. now owns 985 shares of the software maker's stock worth $62,000 after purchasing an additional 637 shares in the last quarter. Finally, Advisors Asset Management Inc. boosted its position in shares of Progress Software by 135.1% during the 1st quarter. Advisors Asset Management Inc. now owns 1,051 shares of the software maker's stock worth $54,000 after acquiring an additional 604 shares in the last quarter.

Progress Software Stock Up 6.5%

Shares of Progress Software stock traded up $2.77 during trading hours on Tuesday, reaching $45.38. 1,577,287 shares of the company were exchanged, compared to its average volume of 795,157. The firm has a market cap of $1.96 billion, a PE ratio of 34.55, a PEG ratio of 1.99 and a beta of 0.68. The company has a debt-to-equity ratio of 2.43, a quick ratio of 0.43 and a current ratio of 0.43. Progress Software has a 1 year low of $40.29 and a 1 year high of $70.56. The stock's fifty day moving average is $44.86 and its 200 day moving average is $53.60.

Progress Software (NASDAQ:PRGS - Get Free Report) last released its earnings results on Monday, June 30th. The software maker reported $1.40 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.30 by $0.10. Progress Software had a return on equity of 43.72% and a net margin of 6.63%.The firm had revenue of $237.36 million during the quarter, compared to analyst estimates of $237.23 million. During the same period last year, the business posted $1.09 earnings per share. Progress Software's revenue was up 35.6% compared to the same quarter last year. As a group, equities research analysts forecast that Progress Software will post 4.01 earnings per share for the current year.

About Progress Software

Progress Software Corporation develops, deploys, and manages business applications in the United States and internationally. The company offers OpenEdge, an application development platform for running business-critical applications; Chef, a DevOps/DevSecOps automation software; Developer Tools that consists of software development tooling collection, including .NET and JavaScript UI components for web, desktop and mobile applications, reporting and report management tools, and automated testing and mocking tools; Kemp LoadMaster, an application delivery and security product offering cloud-native, and virtual and hardware load balancers; and Sitefinity, a digital experience platform foundation delivering intelligent and ROI-driving tools for marketers.

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