Aaron’s (NYSE:PRG) Downgraded to “Sell” Rating by BTIG Research

BTIG Research lowered shares of Aaron’s (NYSE:PRG) from a neutral rating to a sell rating in a research note issued to investors on Monday morning, MarketBeat.com reports. BTIG Research currently has $24.00 price target on the stock.

A number of other equities analysts have also recently commented on PRG. Loop Capital reduced their target price on Aaron’s from $45.00 to $40.00 and set a “buy” rating for the company in a report on Thursday, April 24th. KeyCorp reduced their target price on Aaron’s from $50.00 to $45.00 and set an “overweight” rating for the company in a report on Thursday, April 24th. One investment analyst has rated the stock with a sell rating, one has given a hold rating, four have assigned a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, Aaron’s presently has an average rating of “Moderate Buy” and an average target price of $41.86.

Aaron’s Stock Performance

NYSE:PRG opened at $29.13 on Monday. The company has a debt-to-equity ratio of 0.91, a quick ratio of 2.35 and a current ratio of 4.98. Aaron’s has a 52-week low of $23.50 and a 52-week high of $50.28. The firm has a market cap of $1.18 billion, a price-to-earnings ratio of 5.97 and a beta of 1.76. The business’s fifty day moving average is $29.13 and its 200 day moving average is $31.69.

Aaron’s (NYSE:PRG) last issued its quarterly earnings results on Wednesday, April 23rd. The company reported $0.90 earnings per share for the quarter, topping the consensus estimate of $0.82 by $0.08. The company had revenue of $684.09 million for the quarter, compared to analysts’ expectations of $678.23 million. Aaron’s had a return on equity of 23.11% and a net margin of 8.38%. The firm’s revenue for the quarter was up 6.6% on a year-over-year basis. During the same period in the prior year, the firm earned $0.91 earnings per share. Research analysts predict that Aaron’s will post 3.45 EPS for the current year.

Aaron’s Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 3rd. Investors of record on Tuesday, May 20th were paid a $0.13 dividend. This represents a $0.52 dividend on an annualized basis and a yield of 1.79%. The ex-dividend date was Tuesday, May 20th. Aaron’s’s dividend payout ratio is 10.66%.

Insider Buying and Selling

In related news, CFO Brian Garner purchased 3,500 shares of the firm’s stock in a transaction on Tuesday, May 13th. The shares were bought at an average cost of $28.93 per share, for a total transaction of $101,255.00. Following the transaction, the chief financial officer directly owned 132,597 shares of the company’s stock, valued at approximately $3,836,031.21. This trade represents a 2.71% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CEO Steven A. Michaels bought 14,000 shares of the company’s stock in a transaction on Monday, May 12th. The stock was bought at an average cost of $29.03 per share, with a total value of $406,420.00. Following the completion of the purchase, the chief executive officer owned 559,641 shares of the company’s stock, valued at approximately $16,246,378.23. The trade was a 2.57% increase in their position. The disclosure for this purchase can be found here. 3.21% of the stock is owned by corporate insiders.

Institutional Trading of Aaron’s

A number of large investors have recently added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd raised its stake in Aaron’s by 785.6% in the 1st quarter. Caitong International Asset Management Co. Ltd now owns 1,045 shares of the company’s stock worth $28,000 after purchasing an additional 927 shares in the last quarter. GAMMA Investing LLC increased its holdings in Aaron’s by 66.2% in the 2nd quarter. GAMMA Investing LLC now owns 1,122 shares of the company’s stock valued at $33,000 after buying an additional 447 shares during the period. Summit Securities Group LLC bought a new position in Aaron’s in the 4th quarter valued at about $38,000. Sterling Capital Management LLC increased its holdings in Aaron’s by 765.6% in the 4th quarter. Sterling Capital Management LLC now owns 1,082 shares of the company’s stock valued at $46,000 after buying an additional 957 shares during the period. Finally, CIBC Private Wealth Group LLC increased its holdings in Aaron’s by 248.6% in the 4th quarter. CIBC Private Wealth Group LLC now owns 1,370 shares of the company’s stock valued at $57,000 after buying an additional 977 shares during the period. Institutional investors and hedge funds own 97.92% of the company’s stock.

Aaron’s Company Profile

PROG Holdings, Inc (NYSE:PRG) is a financial technology holding company based in Salt Lake City, Utah with three business segments: Progressive Leasing, which offers lease-to-own transactions primarily to credit-challenged consumers through e-commerce and point-of-sale retail partners, via online, mobile, and in-store solutions; Vive Financial, which provides consumers who may not qualify for traditional prime lending with a variety of second-look, revolving credit products through private label and branded credit cards; and Four Technologies, which provides consumers of all credit backgrounds Buy Now, Pay Later (BNPL) options through four interest-free installments via its platform, Four.