Aaron’s (NYSE:PRG) Trading Up 4.7% Following Strong Earnings

Aaron’s Holdings Company, Inc. (NYSE:PRG) shares were up 4.7% on Wednesday following a stronger than expected earnings report. The company traded as high as $35.60 and last traded at $34.26. Approximately 446,845 shares changed hands during mid-day trading, a decline of 5% from the average daily volume of 471,627 shares. The stock had previously closed at $32.72.

The company reported $0.90 EPS for the quarter, topping the consensus estimate of $0.73 by $0.17. Aaron’s had a net margin of 8.53% and a return on equity of 22.54%. The business had revenue of $595.11 million during the quarter, compared to the consensus estimate of $586.11 million. During the same period in the previous year, the firm posted $0.77 earnings per share. The business’s revenue for the quarter was down 1.8% compared to the same quarter last year. Aaron’s has set its FY 2025 guidance at 3.350-3.450 EPS. Q4 2025 guidance at 0.550-0.650 EPS.

Aaron’s Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 4th. Investors of record on Tuesday, August 19th were given a dividend of $0.13 per share. The ex-dividend date was Tuesday, August 19th. This represents a $0.52 dividend on an annualized basis and a yield of 1.6%. Aaron’s’s payout ratio is currently 10.28%.

Analyst Ratings Changes

A number of research firms recently issued reports on PRG. Weiss Ratings restated a “hold (c)” rating on shares of Aaron’s in a research report on Wednesday, October 8th. Wall Street Zen downgraded shares of Aaron’s from a “buy” rating to a “hold” rating in a research report on Saturday, October 11th. Finally, BTIG Research restated a “sell” rating and set a $27.00 target price on shares of Aaron’s in a research report on Friday, October 10th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Aaron’s currently has a consensus rating of “Moderate Buy” and an average target price of $41.50.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of PRG. Allspring Global Investments Holdings LLC purchased a new stake in shares of Aaron’s during the third quarter worth about $359,000. VIRGINIA RETIREMENT SYSTEMS ET Al increased its stake in shares of Aaron’s by 10.1% during the third quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 42,400 shares of the company’s stock worth $1,372,000 after purchasing an additional 3,900 shares in the last quarter. Diversified Trust Co increased its stake in shares of Aaron’s by 7.1% during the third quarter. Diversified Trust Co now owns 9,263 shares of the company’s stock worth $300,000 after purchasing an additional 616 shares in the last quarter. CWM LLC increased its stake in shares of Aaron’s by 85.1% during the third quarter. CWM LLC now owns 5,258 shares of the company’s stock worth $170,000 after purchasing an additional 2,417 shares in the last quarter. Finally, Assenagon Asset Management S.A. increased its stake in shares of Aaron’s by 65.2% during the third quarter. Assenagon Asset Management S.A. now owns 348,436 shares of the company’s stock worth $11,275,000 after purchasing an additional 137,492 shares in the last quarter. Institutional investors and hedge funds own 97.92% of the company’s stock.

Aaron’s Stock Down 0.3%

The firm has a market cap of $1.29 billion, a PE ratio of 6.44 and a beta of 1.79. The business’s 50 day moving average price is $33.61 and its 200 day moving average price is $30.46. The company has a debt-to-equity ratio of 0.89, a current ratio of 5.71 and a quick ratio of 2.82.

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.