Wedbush Lifts Earnings Estimates for Progress Software

Key Points

• Wedbush has increased its FY2025 earnings estimate for Progress Software from $4.22 to $4.38 per share, setting a price target of $75.00 with an "Outperform" rating.
• Progress Software reported a quarterly earnings of $1.40 EPS, exceeding consensus estimates of $1.30, and its revenue increased by 35.6% year-over-year to $237.36 million.
• Recent analyst ratings for Progress Software include four "Buy" ratings and two "Hold" ratings, with an average price target of $70.00.

Progress Software Corporation (NASDAQ:PRGS - Free Report) - Analysts at Wedbush raised their FY2025 earnings estimates for Progress Software in a research note issued to investors on Tuesday, September 30th. Wedbush analyst D. Ives now forecasts that the software maker will earn $4.38 per share for the year, up from their previous estimate of $4.22. Wedbush has a "Outperform" rating and a $75.00 price objective on the stock. The consensus estimate for Progress Software's current full-year earnings is $4.01 per share. Wedbush also issued estimates for Progress Software's Q4 2025 earnings at $1.03 EPS, Q1 2026 earnings at $1.12 EPS, Q2 2026 earnings at $1.08 EPS, Q3 2026 earnings at $1.14 EPS, Q4 2026 earnings at $1.19 EPS and FY2026 earnings at $4.52 EPS.

Progress Software (NASDAQ:PRGS - Get Free Report) last announced its quarterly earnings results on Monday, June 30th. The software maker reported $1.40 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.30 by $0.10. The company had revenue of $237.36 million during the quarter, compared to analyst estimates of $237.23 million. Progress Software had a net margin of 5.16% and a return on equity of 43.68%. The firm's revenue was up 35.6% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.09 EPS.

Other equities research analysts have also recently issued reports about the stock. DA Davidson reaffirmed a "buy" rating and issued a $75.00 price objective on shares of Progress Software in a research report on Tuesday. Guggenheim reaffirmed a "buy" rating and set a $83.00 price target on shares of Progress Software in a research report on Friday, June 27th. Wall Street Zen cut shares of Progress Software from a "buy" rating to a "hold" rating in a report on Saturday, September 13th. Jefferies Financial Group cut their price target on shares of Progress Software from $60.00 to $50.00 and set a "hold" rating on the stock in a research report on Tuesday. Finally, Citigroup dropped their target price on Progress Software from $64.00 to $57.00 and set a "neutral" rating on the stock in a report on Tuesday, July 15th. Four analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $70.00.

Progress Software Stock Up 2.4%

NASDAQ:PRGS opened at $46.32 on Friday. The stock has a market cap of $1.99 billion, a price-to-earnings ratio of 42.11, a PEG ratio of 2.06 and a beta of 0.67. The company has a current ratio of 0.44, a quick ratio of 0.43 and a debt-to-equity ratio of 2.22. The stock has a 50-day moving average price of $44.60 and a two-hundred day moving average price of $53.41. Progress Software has a 1 year low of $40.29 and a 1 year high of $70.56.

Hedge Funds Weigh In On Progress Software

A number of large investors have recently made changes to their positions in PRGS. Maseco LLP acquired a new stake in Progress Software during the 2nd quarter worth approximately $28,000. Quaker Wealth Management LLC increased its position in Progress Software by 200.0% during the 2nd quarter. Quaker Wealth Management LLC now owns 450 shares of the software maker's stock worth $29,000 after buying an additional 900 shares during the period. Elevation Point Wealth Partners LLC acquired a new stake in shares of Progress Software during the second quarter worth $41,000. Advisors Asset Management Inc. boosted its position in shares of Progress Software by 135.1% in the first quarter. Advisors Asset Management Inc. now owns 1,051 shares of the software maker's stock valued at $54,000 after acquiring an additional 604 shares during the period. Finally, Osaic Holdings Inc. boosted its position in shares of Progress Software by 183.0% in the second quarter. Osaic Holdings Inc. now owns 985 shares of the software maker's stock valued at $62,000 after acquiring an additional 637 shares during the period.

Insider Buying and Selling

In other news, CFO Anthony Folger sold 5,529 shares of the firm's stock in a transaction dated Tuesday, July 8th. The shares were sold at an average price of $52.97, for a total transaction of $292,871.13. Following the completion of the sale, the chief financial officer owned 43,559 shares in the company, valued at approximately $2,307,320.23. This trade represents a 11.26% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director David Krall bought 5,125 shares of Progress Software stock in a transaction that occurred on Wednesday, July 23rd. The shares were bought at an average cost of $48.90 per share, with a total value of $250,612.50. Following the acquisition, the director directly owned 100,090 shares in the company, valued at $4,894,401. This trade represents a 5.40% increase in their position. The disclosure for this purchase can be found here. 3.40% of the stock is owned by insiders.

Progress Software Company Profile

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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