Aaron’s (NYSE:PRG) Shares Gap Up – Should You Buy?

by · The Markets Daily

Aaron’s Holdings Company, Inc. (NYSE:PRG – Get Free Report) gapped up prior to trading on Tuesday . The stock had previously closed at $29.77, but opened at $30.78. Aaron’s shares last traded at $31.0660, with a volume of 180,540 shares changing hands.

Wall Street Analyst Weigh In

A number of brokerages have commented on PRG. Wall Street Zen raised Aaron’s from a “hold” rating to a “buy” rating in a research report on Friday, November 28th. TD Cowen cut their price objective on shares of Aaron’s from $38.00 to $37.00 and set a “buy” rating on the stock in a research note on Thursday, October 23rd. B. Riley assumed coverage on Aaron’s in a research report on Tuesday. They set a “buy” rating and a $50.00 price target on the stock. BTIG Research upgraded Aaron’s from a “sell” rating to a “neutral” rating and set a $31.00 price target for the company in a research report on Friday, November 21st. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Aaron’s in a research report on Wednesday, October 8th. Five investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, Aaron’s currently has an average rating of “Moderate Buy” and a consensus price target of $41.71.

Check Out Our Latest Analysis on Aaron’s

Aaron’s Stock Up 3.6%

The company has a current ratio of 4.74, a quick ratio of 2.65 and a debt-to-equity ratio of 0.85. The business has a fifty day moving average of $29.52 and a two-hundred day moving average of $31.03. The company has a market cap of $1.22 billion, a price-to-earnings ratio of 7.84 and a beta of 1.74.

Aaron’s (NYSE:PRG – Get Free Report) last posted its quarterly earnings data on Wednesday, October 22nd. The company reported $0.90 EPS for the quarter, beating analysts’ consensus estimates of $0.73 by $0.17. Aaron’s had a return on equity of 22.36% and a net margin of 6.54%.The business had revenue of $595.11 million during the quarter, compared to analysts’ expectations of $586.11 million. During the same period in the previous year, the business earned $0.77 earnings per share. The business’s revenue 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 and its Q4 2025 guidance at 0.550-0.650 EPS. As a group, equities analysts anticipate that Aaron’s Holdings Company, Inc. will post 3.45 EPS for the current fiscal year.

Aaron’s Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, December 2nd. Shareholders of record on Tuesday, November 18th were issued a dividend of $0.13 per share. This represents a $0.52 annualized dividend and a yield of 1.7%. The ex-dividend date of this dividend was Tuesday, November 18th. Aaron’s’s dividend payout ratio (DPR) is presently 13.20%.

Institutional Investors Weigh In On Aaron’s

Several large investors have recently bought and sold shares of the company. Vanguard Group Inc. lifted its position in shares of Aaron’s by 1.4% in the first quarter. Vanguard Group Inc. now owns 5,005,577 shares of the company’s stock valued at $133,148,000 after acquiring an additional 68,369 shares in the last quarter. Allianz Asset Management GmbH raised its stake in Aaron’s by 18.9% in the 3rd quarter. Allianz Asset Management GmbH now owns 1,187,509 shares of the company’s stock valued at $38,428,000 after purchasing an additional 188,835 shares during the last quarter. LSV Asset Management lifted its holdings in Aaron’s by 172.0% in the 3rd quarter. LSV Asset Management now owns 842,274 shares of the company’s stock valued at $27,256,000 after purchasing an additional 532,593 shares in the last quarter. UBS Group AG boosted its stake in Aaron’s by 102.4% during the 3rd quarter. UBS Group AG now owns 823,663 shares of the company’s stock worth $26,654,000 after purchasing an additional 416,658 shares during the last quarter. Finally, Ameriprise Financial Inc. grew its holdings in shares of Aaron’s by 1.1% during the third quarter. Ameriprise Financial Inc. now owns 756,270 shares of the company’s stock worth $24,473,000 after buying an additional 8,552 shares in the last quarter. 97.92% of the stock is currently owned by hedge funds and other institutional investors.

About Aaron’s

(Get Free Report)

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.

Further Reading