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

Aaron’s Holdings Company, Inc. (NYSE:PRG) shares gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $28.88, but opened at $32.38. Aaron’s shares last traded at $34.6950, with a volume of 135,185 shares changing hands.

The company reported $1.24 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.10 by $0.14. Aaron’s had a return on equity of 20.99% and a net margin of 5.97%.The business had revenue of $742.67 million for the quarter, compared to analysts’ expectations of $726.96 million. During the same period in the previous year, the business posted $0.90 earnings per share. Aaron’s’s quarterly revenue was up 11.1% on a year-over-year basis. Aaron’s has set its Q2 2026 guidance at 1.050-1.050 EPS.

Aaron’s Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, March 24th. Shareholders of record on Thursday, March 12th were paid a $0.14 dividend. This is an increase from Aaron’s’s previous quarterly dividend of $0.13. This represents a $0.56 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date of this dividend was Thursday, March 12th. Aaron’s’s payout ratio is presently 15.56%.

Analyst Upgrades and Downgrades

PRG has been the subject of several research reports. TD Cowen raised their price objective on shares of Aaron’s from $42.00 to $43.00 and gave the company a “buy” rating in a research report on Wednesday, March 11th. Wall Street Zen upgraded shares of Aaron’s from a “hold” rating to a “buy” rating in a research report on Saturday, February 21st. Weiss Ratings reiterated a “hold (c)” rating on shares of Aaron’s in a research report on Thursday, January 22nd. Finally, Zacks Research lowered Aaron’s from a “strong-buy” rating to a “hold” rating in a research report on Monday, April 20th. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $41.33.

Institutional Trading of Aaron’s

Large investors have recently made changes to their positions in the company. Envestnet Portfolio Solutions Inc. grew its position in Aaron’s by 2.7% in the fourth quarter. Envestnet Portfolio Solutions Inc. now owns 13,199 shares of the company’s stock valued at $389,000 after acquiring an additional 344 shares during the last quarter. HB Wealth Management LLC raised its position in shares of Aaron’s by 1.7% during the first quarter. HB Wealth Management LLC now owns 21,470 shares of the company’s stock worth $616,000 after purchasing an additional 359 shares during the period. Quarry LP increased its holdings in Aaron’s by 82.8% during the 4th quarter. Quarry LP now owns 1,117 shares of the company’s stock worth $33,000 after purchasing an additional 506 shares in the last quarter. Horizon Investments LLC raised its position in Aaron’s by 2.6% in the 4th quarter. Horizon Investments LLC now owns 20,948 shares of the company’s stock valued at $618,000 after buying an additional 537 shares during the last quarter. Finally, GAMMA Investing LLC raised its holdings in shares of Aaron’s by 45.3% in the fourth quarter. GAMMA Investing LLC now owns 1,806 shares of the company’s stock valued at $53,000 after purchasing an additional 563 shares during the last quarter. Institutional investors and hedge funds own 97.92% of the company’s stock.

Aaron’s Stock Performance

The company’s 50-day simple moving average is $31.26 and its 200 day simple moving average is $30.89. The stock has a market cap of $1.41 billion, a P/E ratio of 9.91 and a beta of 1.81. The company has a current ratio of 4.71, a quick ratio of 2.32 and a debt-to-equity ratio of 0.80.

About Aaron’s

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.