Aaron’s (NYSE:PRG) Shares Gap Up on Earnings Beat

Aaron’s Holdings Company, Inc. (NYSE:PRG)’s stock price gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $33.87, but opened at $35.59. Aaron’s shares last traded at $35.39, with a volume of 227,615 shares.

The company reported $0.74 EPS for the quarter, beating analysts’ consensus estimates of $0.60 by $0.14. The firm had revenue of $525.36 million for the quarter, compared to analysts’ expectations of $581.82 million. Aaron’s had a return on equity of 22.36% and a net margin of 6.54%.The company’s quarterly revenue was down 5.2% on a year-over-year basis. During the same period last year, the firm earned $0.80 EPS. Aaron’s has set its Q1 2026 guidance at 0.700-0.900 EPS and its FY 2026 guidance at 4.000-4.450 EPS.

Analyst Ratings Changes

A number of brokerages have issued reports on PRG. Wall Street Zen lowered shares of Aaron’s from a “buy” rating to a “hold” rating in a research note on Saturday, January 10th. B. Riley Financial started coverage on Aaron’s in a research note on Tuesday, December 16th. They set a “buy” rating and a $50.00 target price for the company. Weiss Ratings restated a “hold (c)” rating on shares of Aaron’s in a research note on Thursday, January 22nd. 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 report on Friday, November 21st. Finally, TD Cowen decreased their price target on shares of Aaron’s from $41.00 to $38.00 and set a “buy” rating for the company in a research note on Thursday, January 8th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $38.83.

Hedge Funds Weigh In On Aaron’s

Institutional investors and hedge funds have recently made changes to their positions in the stock. Goldman Sachs Group Inc. grew its position in shares of Aaron’s by 436.0% in the fourth quarter. Goldman Sachs Group Inc. now owns 1,824,091 shares of the company’s stock valued at $53,792,000 after purchasing an additional 1,483,751 shares during the last quarter. First Trust Advisors LP lifted its stake in Aaron’s by 451.1% in the 3rd quarter. First Trust Advisors LP now owns 702,781 shares of the company’s stock valued at $22,742,000 after buying an additional 575,255 shares in the last quarter. LSV Asset Management grew its holdings in Aaron’s by 172.0% during the 3rd quarter. LSV Asset Management now owns 842,274 shares of the company’s stock valued at $27,256,000 after buying an additional 532,593 shares during the last quarter. UBS Group AG grew its holdings in Aaron’s by 102.4% during the 3rd quarter. UBS Group AG now owns 823,663 shares of the company’s stock valued at $26,654,000 after buying an additional 416,658 shares during the last quarter. Finally, Millennium Management LLC increased its position in Aaron’s by 62.7% during the first quarter. Millennium Management LLC now owns 673,405 shares of the company’s stock worth $17,913,000 after buying an additional 259,630 shares in the last quarter. 97.92% of the stock is owned by institutional investors and hedge funds.

Aaron’s Stock Performance

The company has a quick ratio of 2.65, a current ratio of 4.74 and a debt-to-equity ratio of 0.85. The stock has a fifty day moving average price of $31.80 and a two-hundred day moving average price of $31.73. The company has a market capitalization of $1.40 billion, a price-to-earnings ratio of 8.98 and a beta of 1.73.

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.