Aaron’s (NYSE:PRG) Downgraded to Hold Rating by Wall Street Zen

Wall Street Zen cut shares of Aaron’s (NYSE:PRG) from a buy rating to a hold rating in a research note published on Saturday.

Other equities research analysts have also recently issued research reports about the company. Weiss Ratings reissued a “hold (c)” rating on shares of Aaron’s in a research note on Wednesday, October 8th. B. Riley began coverage on Aaron’s in a report on Tuesday, December 16th. They set a “buy” rating and a $50.00 price target for the company. TD Cowen reduced their price objective on shares of Aaron’s from $41.00 to $38.00 and set a “buy” rating on the stock in a report on Thursday. Finally, BTIG Research raised shares of Aaron’s from a “sell” rating to a “neutral” rating and set a $31.00 target price on the stock in a research report on Friday, November 21st. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $38.83.

Aaron’s Price Performance

Shares of PRG stock opened at $32.29 on Friday. The company has a debt-to-equity ratio of 0.85, a current ratio of 4.74 and a quick ratio of 2.65. The company has a market capitalization of $1.28 billion, a PE ratio of 8.19 and a beta of 1.75. The firm’s 50-day moving average is $29.26 and its two-hundred day moving average is $31.20. Aaron’s has a 12 month low of $23.50 and a 12 month high of $44.42.

Aaron’s (NYSE:PRG) last announced its quarterly earnings results on Wednesday, October 22nd. The company reported $0.90 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.73 by $0.17. The business had revenue of $595.11 million during the quarter, compared to the consensus estimate of $586.11 million. Aaron’s had a net margin of 6.54% and a return on equity of 22.36%. The business’s revenue was down 1.8% compared to the same quarter last year. During the same quarter last year, the firm earned $0.77 EPS. 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. Analysts predict that Aaron’s will post 3.45 earnings per share for the current year.

Aaron’s Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, December 2nd. Shareholders of record on Tuesday, November 18th were given a $0.13 dividend. This represents a $0.52 annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend was Tuesday, November 18th. Aaron’s’s payout ratio is currently 13.20%.

Institutional Investors Weigh In On Aaron’s

Several large investors have recently added to or reduced their stakes in PRG. Ameritas Advisory Services LLC acquired a new stake in Aaron’s during the 2nd quarter worth approximately $27,000. GAMMA Investing LLC increased its position in shares of Aaron’s by 66.2% during the second quarter. GAMMA Investing LLC now owns 1,122 shares of the company’s stock worth $33,000 after acquiring an additional 447 shares during the period. Whittier Trust Co. raised its stake in shares of Aaron’s by 157.6% in the second quarter. Whittier Trust Co. now owns 1,391 shares of the company’s stock valued at $41,000 after acquiring an additional 851 shares in the last quarter. WealthCollab LLC raised its stake in shares of Aaron’s by 61.9% in the second quarter. WealthCollab LLC now owns 2,092 shares of the company’s stock valued at $61,000 after acquiring an additional 800 shares in the last quarter. Finally, CWM LLC boosted its holdings in Aaron’s by 225.4% in the second quarter. CWM LLC now owns 2,841 shares of the company’s stock valued at $83,000 after purchasing an additional 1,968 shares during the period. 97.92% of the stock is owned by hedge funds and other institutional investors.

Aaron’s Company Profile

PROG Holdings, Inc (NYSE: PRG), formerly known as Aaron’s, is a North American provider of lease-to-own and consumer finance solutions. The company operates through two primary segments: Aaron’s Business Solutions and Progressive Financial Services. Through Aaron’s Business Solutions, PROG offers customers access to furniture, electronics, home appliances and technology products via lease ownership arrangements, serving both individual consumers and small businesses.

The Progressive Financial Services segment provides lease-purchase and retail point-of-sale financing programs to customers with limited credit histories.