Upbound Group (NASDAQ:UPBD) Shares Gap Up After Better-Than-Expected Earnings

Upbound Group, Inc. (NASDAQ:UPBD) shares gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $19.90, but opened at $22.39. Upbound Group shares last traded at $22.92, with a volume of 99,067 shares traded.

The company reported $1.00 EPS for the quarter, beating analysts’ consensus estimates of $0.94 by $0.06. Upbound Group had a return on equity of 35.47% and a net margin of 2.86%. The business had revenue of $1.18 billion for the quarter, compared to analyst estimates of $1.13 billion. During the same quarter last year, the company earned $0.79 earnings per share. The business’s revenue for the quarter was up 7.3% compared to the same quarter last year.

Upbound Group Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, April 22nd. Investors of record on Wednesday, April 2nd were paid a dividend of $0.39 per share. This represents a $1.56 annualized dividend and a dividend yield of 6.46%. The ex-dividend date of this dividend was Wednesday, April 2nd. Upbound Group’s payout ratio is 70.59%.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the company. Loop Capital cut their price target on Upbound Group from $33.00 to $30.00 and set a “hold” rating for the company in a report on Friday, February 21st. Raymond James reiterated an “outperform” rating and set a $35.00 target price (down from $40.00) on shares of Upbound Group in a research report on Friday. Two research analysts have rated the stock with a hold rating, three have assigned a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $36.60.

Insider Buying and Selling at Upbound Group

In other news, Director Jeffrey J. Brown bought 1,694 shares of the firm’s stock in a transaction dated Tuesday, April 22nd. The stock was acquired at an average price of $19.89 per share, for a total transaction of $33,693.66. Following the acquisition, the director now owns 88,074 shares of the company’s stock, valued at $1,751,791.86. This trade represents a 1.96 % increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CFO Fahmi Karam purchased 11,500 shares of the business’s stock in a transaction that occurred on Monday, March 10th. The stock was acquired at an average price of $25.82 per share, for a total transaction of $296,930.00. Following the acquisition, the chief financial officer now directly owns 164,672 shares of the company’s stock, valued at $4,251,831.04. This trade represents a 7.51 % increase in their position. The disclosure for this purchase can be found here. 2.70% of the stock is owned by company insiders.

Institutional Trading of Upbound Group

A number of institutional investors have recently added to or reduced their stakes in the business. R Squared Ltd acquired a new position in shares of Upbound Group during the fourth quarter worth about $25,000. TD Private Client Wealth LLC boosted its holdings in Upbound Group by 59.9% in the 1st quarter. TD Private Client Wealth LLC now owns 1,311 shares of the company’s stock worth $31,000 after acquiring an additional 491 shares during the period. CWM LLC grew its position in Upbound Group by 35.5% in the first quarter. CWM LLC now owns 1,880 shares of the company’s stock valued at $45,000 after acquiring an additional 493 shares in the last quarter. Blue Trust Inc. raised its stake in shares of Upbound Group by 45.0% during the fourth quarter. Blue Trust Inc. now owns 2,271 shares of the company’s stock valued at $73,000 after purchasing an additional 705 shares during the period. Finally, PNC Financial Services Group Inc. lifted its position in shares of Upbound Group by 12.8% during the fourth quarter. PNC Financial Services Group Inc. now owns 3,785 shares of the company’s stock worth $110,000 after purchasing an additional 429 shares in the last quarter. 90.30% of the stock is owned by hedge funds and other institutional investors.

Upbound Group Stock Up 1.9 %

The firm has a market capitalization of $1.40 billion, a PE ratio of 10.93 and a beta of 1.90. The company has a quick ratio of 0.86, a current ratio of 3.66 and a debt-to-equity ratio of 2.08. The firm’s 50 day moving average price is $23.09 and its two-hundred day moving average price is $27.94.

Upbound Group Company Profile

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.