Upbound Group (NASDAQ:UPBD) Trading Up 9.6% Following Better-Than-Expected Earnings

Upbound Group, Inc. (NASDAQ:UPBD) shot up 9.6% on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $23.98 and last traded at $22.89. 361,864 shares were traded during mid-day trading, a decline of 45% from the average session volume of 662,583 shares. The stock had previously closed at $20.88.

The company reported $1.01 earnings per share for the quarter, beating the consensus estimate of $0.97 by $0.04. The firm had revenue of $1.20 billion for the quarter, compared to analyst estimates of $1.17 billion. Upbound Group had a net margin of 1.85% and a return on equity of 36.08%. The business’s quarterly revenue was up 10.8% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.05 earnings per share. Upbound Group has set its Q1 2026 guidance at 1.050-1.150 EPS and its FY 2026 guidance at 4.000-4.350 EPS.

Upbound Group Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, January 6th. Shareholders of record on Wednesday, December 17th were paid a $0.39 dividend. This represents a $1.56 dividend on an annualized basis and a yield of 6.9%. The ex-dividend date of this dividend was Wednesday, December 17th. Upbound Group’s dividend payout ratio (DPR) is 107.59%.

Wall Street Analyst Weigh In

Several analysts recently issued reports on UPBD shares. Zacks Research downgraded shares of Upbound Group from a “hold” rating to a “strong sell” rating in a research report on Thursday, February 12th. BTIG Research reduced their price objective on shares of Upbound Group from $40.00 to $28.00 and set a “buy” rating for the company in a report on Friday, October 31st. Wall Street Zen downgraded shares of Upbound Group from a “buy” rating to a “hold” rating in a research report on Saturday, January 17th. TD Cowen restated a “buy” rating on shares of Upbound Group in a report on Thursday, January 8th. Finally, Weiss Ratings reiterated a “hold (c-)” rating on shares of Upbound Group in a research note on Monday, December 29th. Four equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Upbound Group currently has an average rating of “Moderate Buy” and a consensus target price of $32.25.

Insiders Place Their Bets

In other news, Director Jeffrey J. Brown acquired 2,502 shares of the firm’s stock in a transaction on Tuesday, January 6th. The stock was purchased at an average price of $17.68 per share, for a total transaction of $44,235.36. Following the purchase, the director owned 92,972 shares in the company, valued at approximately $1,643,744.96. This represents a 2.77% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Company insiders own 2.60% of the company’s stock.

Hedge Funds Weigh In On Upbound Group

A number of hedge funds and other institutional investors have recently modified their holdings of UPBD. The Manufacturers Life Insurance Company lifted its holdings in Upbound Group by 1.9% during the second quarter. The Manufacturers Life Insurance Company now owns 25,705 shares of the company’s stock worth $645,000 after acquiring an additional 482 shares during the period. Amalgamated Bank increased its position in shares of Upbound Group by 3.4% during the 3rd quarter. Amalgamated Bank now owns 15,275 shares of the company’s stock valued at $361,000 after purchasing an additional 509 shares during the last quarter. Public Employees Retirement System of Ohio increased its position in shares of Upbound Group by 18.7% during the 4th quarter. Public Employees Retirement System of Ohio now owns 3,400 shares of the company’s stock valued at $60,000 after purchasing an additional 535 shares during the last quarter. Allianz Asset Management GmbH raised its stake in shares of Upbound Group by 0.7% during the 2nd quarter. Allianz Asset Management GmbH now owns 84,556 shares of the company’s stock worth $2,122,000 after purchasing an additional 621 shares during the period. Finally, Nisa Investment Advisors LLC boosted its holdings in shares of Upbound Group by 5.5% in the 2nd quarter. Nisa Investment Advisors LLC now owns 12,183 shares of the company’s stock worth $311,000 after buying an additional 638 shares during the last quarter. Hedge funds and other institutional investors own 90.30% of the company’s stock.

Upbound Group Stock Up 9.0%

The company has a market capitalization of $1.32 billion, a PE ratio of 15.68 and a beta of 1.88. The stock’s fifty day moving average is $18.99 and its two-hundred day moving average is $20.89. The company has a current ratio of 3.16, a quick ratio of 0.98 and a debt-to-equity ratio of 2.25.

Upbound Group Company Profile

Upbound Group, Inc leases household durable goods to customers on a lease-to-own basis in the United States, Puerto Rico, and Mexico. It operates through four segments: Rent-A-Center, Acima, Mexico, and Franchising. The company's brands, such as Rent-A-Center and Acima that facilitate consumer transactions across a range of store-based and virtual channels. It offers furniture comprising mattresses, tires, consumer electronics, appliances, tools, handbags, computers, smartphones, and accessories.