Upbound Group (NASDAQ:UPBD) Shares Gap Up on Earnings Beat

Shares of Upbound Group, Inc. (NASDAQ:UPBD) gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $16.91, but opened at $18.00. Upbound Group shares last traded at $18.6740, with a volume of 305,818 shares.

The company reported $1.01 earnings per share for the quarter, topping the consensus estimate of $0.91 by $0.10. The firm had revenue of $1.15 billion for the quarter, compared to the consensus estimate of $1.12 billion. Upbound Group had a net margin of 1.90% and a return on equity of 34.53%. The company’s revenue for the quarter was down 1.3% on a year-over-year basis. During the same period last year, the firm posted $1.00 earnings per share.

Upbound Group Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, October 27th. Stockholders of record on Tuesday, October 6th were issued a $0.39 dividend. This represents a $1.56 dividend on an annualized basis and a dividend yield of 8.3%. The ex-dividend date of this dividend was Tuesday, October 6th. Upbound Group’s payout ratio is presently 101.30%.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on the company. TD Cowen lowered their target price on Upbound Group from $28.00 to $27.00 and set a “buy” rating on the stock in a report on Tuesday, October 6th. Weiss Ratings lowered shares of Upbound Group from a “hold (c)” rating to a “hold (c-)” rating in a report on Monday, September 21st. Zacks Research raised Upbound Group from a “strong sell” rating to a “hold” rating in a research note on Monday, September 28th. Wall Street Zen cut Upbound Group from a “buy” rating to a “hold” rating in a report on Saturday, October 24th. Finally, BTIG Research cut Upbound Group from a “buy” rating to a “neutral” rating and set a $28.00 target price for the company. in a research note on Friday, July 31st. One equities research analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, Upbound Group presently has an average rating of “Hold” and an average target price of $27.50.

Insider Buying and Selling

In other Upbound Group news, EVP Anthony Blasquez sold 10,000 shares of the firm’s stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $18.85, for a total value of $188,500.00. Following the completion of the sale, the executive vice president owned 43,717 shares in the company, valued at approximately $824,065.45. This trade represents a 18.62% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 1.20% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Upbound Group

A number of institutional investors and hedge funds have recently modified their holdings of the business. Legal & General Group Plc bought a new position in shares of Upbound Group during the second quarter worth approximately $2,504,000. Venture Visionary Partners LLC boosted its holdings in shares of Upbound Group by 72.8% during the 3rd quarter. Venture Visionary Partners LLC now owns 157,858 shares of the company’s stock worth $2,478,000 after buying an additional 66,491 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. acquired a new position in Upbound Group during the second quarter worth $3,868,000. Sei Investments Co. raised its position in Upbound Group by 249.0% in the 1st quarter. Sei Investments Co. now owns 244,848 shares of the company’s stock valued at $4,419,000 after buying an additional 174,682 shares during the last quarter. Finally, Bank of America Corp DE bought a new stake in Upbound Group during the second quarter worth $6,251,000. 90.30% of the stock is owned by institutional investors.

Upbound Group Price Performance

The company has a market cap of $1.09 billion, a P/E ratio of 12.12 and a beta of 1.78. The company has a current ratio of 3.22, a quick ratio of 0.97 and a debt-to-equity ratio of 1.94. The business’s fifty day moving average is $17.18 and its 200 day moving average is $18.87.

Upbound Group Company Profile

Upbound Group, Inc is a provider of consumer leasing and retail solutions, operating primarily through its Rent-A-Center and Acima brands. The company enables customers to obtain merchandise through flexible lease-to-own agreements and related payment options, serving consumers who may prefer alternatives to traditional retail financing.

Its Rent-A-Center business operates company-owned and franchised locations, as well as digital channels, offering furniture, appliances, electronics, computers, smartphones and other household goods.