Upbound Group (NASDAQ:UPBD) Shares Gap Up on Analyst Upgrade

Key Points

• Upbound Group's shares surged after Loop Capital upgraded the stock from a hold to a buy rating, with a new price target of $36.00.
• Several analysts have increased their ratings, contributing to a consensus rating of "Buy" for the stock.
• Insider trading activity included an EVP selling 6,000 shares at an average price of $25.23, representing a 10.88% decrease in ownership.

Shares of Upbound Group, Inc. (NASDAQ:UPBD - Get Free Report) gapped up before the market opened on Monday after Loop Capital upgraded the stock from a hold rating to a buy rating. The stock had previously closed at $25.02, but opened at $26.12. Loop Capital now has a $36.00 price target on the stock. Upbound Group shares last traded at $26.98, with a volume of 100,791 shares trading hands.

Separately, Wall Street Zen raised Upbound Group from a "hold" rating to a "buy" rating in a research report on Saturday, August 30th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, Upbound Group currently has a consensus rating of "Buy" and a consensus price target of $36.00.

Insider Transactions at Upbound Group

In other news, EVP Ralph T. Montrone sold 6,000 shares of Upbound Group stock in a transaction dated Thursday, September 11th. The stock was sold at an average price of $25.23, for a total value of $151,380.00. Following the sale, the executive vice president directly owned 49,123 shares of the company's stock, valued at approximately $1,239,373.29. The trade was a 10.88% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Jeffrey J. Brown bought 1,653 shares of Upbound Group stock in a transaction dated Tuesday, July 8th. The stock was purchased at an average cost of $25.90 per share, for a total transaction of $42,812.70. Following the completion of the acquisition, the director directly owned 89,400 shares of the company's stock, valued at approximately $2,315,460. The trade was a 1.88% increase in their position. The disclosure for this purchase can be found here. 2.60% of the stock is owned by company insiders.

Institutional Investors Weigh In On Upbound Group

Several large investors have recently added to or reduced their stakes in the stock. The Manufacturers Life Insurance Company lifted its position in Upbound Group by 1.9% in the second quarter. The Manufacturers Life Insurance Company now owns 25,705 shares of the company's stock worth $645,000 after buying an additional 482 shares during the last quarter. TD Private Client Wealth LLC lifted its position in Upbound Group by 59.9% in the first quarter. TD Private Client Wealth LLC now owns 1,311 shares of the company's stock worth $31,000 after buying an additional 491 shares during the last quarter. CWM LLC lifted its position in Upbound Group by 35.5% in the first quarter. CWM LLC now owns 1,880 shares of the company's stock worth $45,000 after buying an additional 493 shares during the last quarter. Inspire Investing LLC lifted its position in Upbound Group by 3.9% in the first quarter. Inspire Investing LLC now owns 14,338 shares of the company's stock worth $344,000 after buying an additional 540 shares during the last quarter. Finally, Louisiana State Employees Retirement System lifted its position in Upbound Group by 2.6% in the first quarter. Louisiana State Employees Retirement System now owns 24,100 shares of the company's stock worth $577,000 after buying an additional 600 shares during the last quarter. 90.30% of the stock is owned by institutional investors.

Upbound Group Stock Performance

The company has a market capitalization of $1.55 billion, a P/E ratio of 15.04 and a beta of 1.77. The business has a 50-day moving average of $24.40 and a 200-day moving average of $23.98. The company has a debt-to-equity ratio of 2.29, a current ratio of 3.11 and a quick ratio of 0.83.

Upbound Group (NASDAQ:UPBD - Get Free Report) last announced its earnings results on Thursday, July 31st. The company reported $1.12 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.05 by $0.07. Upbound Group had a return on equity of 36.26% and a net margin of 2.28%.The business had revenue of $1.16 billion during the quarter, compared to analyst estimates of $1.14 billion. During the same quarter in the previous year, the business earned $1.04 earnings per share. The company's revenue for the quarter was up 7.5% compared to the same quarter last year. Upbound Group has set its FY 2025 guidance at 4.050-4.40 EPS. Q3 2025 guidance at 0.950-1.05 EPS. On average, sell-side analysts anticipate that Upbound Group, Inc. will post 4.28 EPS for the current year.

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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