Its Stock Has Paid Off Big Time For The Progressive Corporation

The Progressive Corporation (NYSE: PGR) stock fell -2.99% on Friday to $121.36 against a previous-day closing price of $125.10. With 2.76 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.64 million shares. During the session, the Insurance – Property & Casualty company that operates in wider Financial sector, reached to the highest price of $126.05 whereas the lowest price it dropped to was $121.36. The 52-week range on PGR shows that it touched its highest point at $129.76 and its lowest point at $88.05 during that stretch. It currently has a 1-year price target of $118.69. With its current market cap of 72.22 billion, PGR has annualized dividend of $0.40 while the current yield stands at 0.33%. Beta for the stock currently stands at 0.42.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of PGR was down-trending over the past week, with a drop of -5.22%, but this was down by -3.64% over a month. Three-month performance surged to 8.50% while six-month performance rose 7.07%. The stock gained 33.76% in the past year, while it has gained 18.23% so far this year. A look at the trailing 12-month EPS for PGR yields 1.40 with Next year EPS estimates of 6.23. For the next quarter, that number is 1.55. This implies an EPS growth rate of -41.40% for this year and 23.81% for next year. EPS is expected to grow by 30.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 26.30%.

Float and Shares Shorts:

At present, 584.30 million PGR shares are outstanding with a float of 582.57 million shares on hand for trading. On Aug 30, 2022, short shares totaled 4.68 million, which was 0.80% higher than short shares on Jul 28, 2022. In addition to Ms. Susan Patricia Griffith as the firm’s Pres, CEO & Director, Mr. John Peter Sauerland serves as its VP & CFO.

Institutional Ownership:

Through their ownership of 86.01% of PGR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 8.56% of PGR, in contrast to 49.23% held by mutual funds. Shares owned by individuals account for 38.22%. As the largest shareholder in PGR with 8.02% of the stake, The Vanguard Group, Inc. holds 46,892,923 shares worth 46,892,923. A second-largest stockholder of PGR, Wellington Management Co. LLP, holds 31,207,047 shares, controlling over 5.34% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in PGR, holding 27,828,573 shares or 4.76% stake. With a 2.96% stake in PGR, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 17,319,377 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.23% of PGR stock, is the second-largest Mutual Fund holder. It holds 13,053,061 shares valued at 1.6 billion. Vanguard Wellington Fund holds 2.15% of the stake in PGR, owning 12,601,730 shares worth 1.55 billion.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for PGR since 21 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 6 suggest SELL ratings. Of the remaining analysts, 10 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With PGR analysts setting a high price target of $155.00 and a low target of $92.00, the average target price over the next 12 months is $120.75. Based on these targets, PGR could surge 27.72% to reach the target high and fall by -24.19% to reach the target low. Reaching the average price target will result in a decline of -0.5% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. PGR will report FY 2022 earnings on 01/25/2023. Analysts have provided yearly estimates in a range of $5.73 being high and $3.75 being low. For PGR, this leads to a yearly average estimate of $5.08. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. The Progressive Corporation surprised analysts by $0.03 when it reported $0.96 EPS against a consensus estimate of $0.93. The surprise factor in the prior quarter was -$0.11. Based on analyst estimates, the high estimate for the next quarter is $1.77 and the low estimate is $1.20. The average estimate for the next quarter is thus $1.57.

Summary of Insider Activity:

Insiders traded PGR stock several times over the past three months with 1 Buys and 1 Sells. In these transactions, 4,892 shares were bought while 530 shares were sold. The number of buy transactions has increased to 35 while that of sell transactions has risen to 53 over the past year. The total number of shares bought during that period was 201,850 while 209,184 shares were sold.

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