William Blair Comments on The Progressive Co.’s Q2 2022 Earnings (NYSE:PGR)

The Progressive Co. (NYSE:PGRGet Rating) – Stock analysts at William Blair reduced their Q2 2022 earnings per share (EPS) estimates for Progressive in a report issued on Tuesday, June 21st. William Blair analyst A. Klauber now expects that the insurance provider will earn $1.03 per share for the quarter, down from their previous forecast of $1.14. The consensus estimate for Progressive’s current full-year earnings is $4.76 per share. William Blair also issued estimates for Progressive’s Q3 2022 earnings at $1.40 EPS, Q4 2022 earnings at $1.94 EPS, FY2022 earnings at $5.50 EPS, Q1 2023 earnings at $1.92 EPS, Q2 2023 earnings at $1.48 EPS, Q3 2023 earnings at $1.82 EPS, Q4 2023 earnings at $2.33 EPS and FY2023 earnings at $7.55 EPS.

PGR has been the subject of several other research reports. Wells Fargo & Company upped their target price on Progressive from $88.00 to $96.00 and gave the stock an “underweight” rating in a research report on Tuesday, April 12th. Jefferies Financial Group upgraded Progressive from an “underperform” rating to a “hold” rating and boosted their price target for the stock from $99.00 to $106.00 in a research note on Tuesday, May 10th. Credit Suisse Group assumed coverage on Progressive in a research note on Thursday, April 28th. They issued a “neutral” rating and a $124.00 price target on the stock. The Goldman Sachs Group cut Progressive from a “buy” rating to a “neutral” rating and set a $116.00 price target on the stock. in a research note on Wednesday, March 2nd. Finally, Morgan Stanley upgraded Progressive from an “underweight” rating to an “equal weight” rating and boosted their price target for the stock from $85.00 to $115.00 in a research note on Monday, May 9th. Six investment analysts have rated the stock with a sell rating, seven have assigned a hold rating and two have given a buy rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $106.08.

Shares of NYSE PGR opened at $111.85 on Thursday. Progressive has a 1-year low of $89.35 and a 1-year high of $121.36. The business has a 50-day moving average of $112.76 and a 200-day moving average of $109.16. The company has a debt-to-equity ratio of 0.39, a current ratio of 0.33 and a quick ratio of 0.33. The company has a market capitalization of $65.42 billion, a price-to-earnings ratio of 30.39, a PEG ratio of 1.36 and a beta of 0.49.

Progressive (NYSE:PGRGet Rating) last issued its earnings results on Thursday, April 14th. The insurance provider reported $1.12 earnings per share for the quarter, missing the consensus estimate of $1.24 by ($0.12). Progressive had a return on equity of 12.85% and a net margin of 4.54%. The company had revenue of $12.29 billion during the quarter, compared to analysts’ expectations of $12.24 billion.

The business also recently declared a quarterly dividend, which will be paid on Friday, July 15th. Stockholders of record on Thursday, July 7th will be given a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.36%. The ex-dividend date of this dividend is Wednesday, July 6th. Progressive’s payout ratio is 10.87%.

Progressive declared that its Board of Directors has initiated a share repurchase plan on Wednesday, May 18th that permits the company to buyback 25,000,000 shares. This buyback authorization permits the insurance provider to purchase shares of its stock through open market purchases. Shares buyback plans are generally an indication that the company’s board believes its stock is undervalued.

In related news, Director Jeffrey D. Kelly sold 10,000 shares of the stock in a transaction that occurred on Monday, April 4th. The stock was sold at an average price of $115.00, for a total value of $1,150,000.00. Following the completion of the transaction, the director now directly owns 58,720 shares of the company’s stock, valued at approximately $6,752,800. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Daniel P. Mascaro sold 558 shares of the stock in a transaction that occurred on Thursday, April 21st. The stock was sold at an average price of $113.59, for a total value of $63,383.22. Following the completion of the transaction, the insider now directly owns 39,445 shares of the company’s stock, valued at $4,480,557.55. The disclosure for this sale can be found here. Insiders have sold a total of 23,251 shares of company stock worth $2,719,357 over the last quarter. Insiders own 0.37% of the company’s stock.

Hedge funds have recently modified their holdings of the stock. Blume Capital Management Inc. bought a new position in Progressive in the 1st quarter worth approximately $25,000. Rational Advisors LLC boosted its stake in Progressive by 132.7% during the 4th quarter. Rational Advisors LLC now owns 249 shares of the insurance provider’s stock valued at $26,000 after purchasing an additional 142 shares in the last quarter. TAP Consulting LLC bought a new position in Progressive during the 4th quarter valued at $28,000. Cornerstone Advisory LLC bought a new position in Progressive during the 4th quarter valued at $30,000. Finally, Capital Advisors Ltd. LLC boosted its stake in Progressive by 117.5% during the 4th quarter. Capital Advisors Ltd. LLC now owns 298 shares of the insurance provider’s stock valued at $31,000 after purchasing an additional 161 shares in the last quarter. 83.68% of the stock is owned by institutional investors and hedge funds.

About Progressive (Get Rating)

The Progressive Corporation, an insurance holding company, provides personal and commercial auto, personal residential and commercial property, general liability, and other specialty property-casualty insurance products and related services in the United States. It operates in three segments: Personal Lines, Commercial Lines, and Property.

Further Reading

Earnings History and Estimates for Progressive (NYSE:PGR)

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