Upbound Group (NASDAQ:UPBD) Trading Up 9.2% After Earnings Beat

02 Nov 2024, 13:50 by Sarita Garza · The Markets Daily

Upbound Group, Inc. (NASDAQ:UPBD – Get Free Report) shares traded up 9.2% on Thursday following a stronger than expected earnings report. The company traded as high as $29.76 and last traded at $29.56. 99,380 shares were traded during mid-day trading, a decline of 78% from the average session volume of 448,387 shares. The stock had previously closed at $27.08.

The company reported $0.95 earnings per share for the quarter, beating analysts’ consensus estimates of $0.89 by $0.06. The firm had revenue of $1.07 billion for the quarter, compared to analysts’ expectations of $1.04 billion. Upbound Group had a return on equity of 32.94% and a net margin of 1.31%. The firm’s revenue for the quarter was up 9.2% compared to the same quarter last year. During the same quarter last year, the firm earned $0.79 earnings per share.

Upbound Group Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, October 22nd. Investors of record on Tuesday, October 1st were paid a dividend of $0.37 per share. The ex-dividend date was Tuesday, October 1st. This represents a $1.48 annualized dividend and a yield of 5.02%. Upbound Group’s dividend payout ratio (DPR) is 151.02%.

Wall Street Analyst Weigh In

A number of brokerages recently commented on UPBD. Jefferies Financial Group lowered their price objective on Upbound Group from $37.00 to $35.00 and set a “hold” rating for the company in a research note on Tuesday, October 1st. Loop Capital lowered their price target on shares of Upbound Group from $36.00 to $33.00 and set a “hold” rating for the company in a research report on Friday. Two investment analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $39.40.

Get Our Latest Stock Analysis on UPBD

Insider Buying and Selling

In related news, EVP Ralph T. Montrone sold 15,000 shares of the firm’s stock in a transaction dated Monday, August 5th. The stock was sold at an average price of $32.48, for a total transaction of $487,200.00. Following the completion of the transaction, the executive vice president now owns 40,074 shares of the company’s stock, valued at $1,301,603.52. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. In related news, Director Jeffrey J. Brown acquired 1,065 shares of the business’s stock in a transaction on Tuesday, October 22nd. The shares were purchased at an average price of $29.25 per share, for a total transaction of $31,151.25. Following the acquisition, the director now owns 85,234 shares in the company, valued at approximately $2,493,094.50. This represents a 0.00 % increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Ralph T. Montrone sold 15,000 shares of the company’s stock in a transaction that occurred on Monday, August 5th. The shares were sold at an average price of $32.48, for a total transaction of $487,200.00. Following the completion of the sale, the executive vice president now owns 40,074 shares of the company’s stock, valued at approximately $1,301,603.52. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. 2.70% of the stock is owned by corporate insiders.

Institutional Trading of Upbound Group

Several hedge funds and other institutional investors have recently modified their holdings of UPBD. Headlands Technologies LLC purchased a new stake in Upbound Group in the 1st quarter worth about $29,000. Blue Trust Inc. lifted its position in shares of Upbound Group by 47.9% in the second quarter. Blue Trust Inc. now owns 1,118 shares of the company’s stock worth $34,000 after purchasing an additional 362 shares in the last quarter. Covestor Ltd lifted its position in shares of Upbound Group by 268.8% in the third quarter. Covestor Ltd now owns 1,136 shares of the company’s stock worth $37,000 after purchasing an additional 828 shares in the last quarter. Meeder Asset Management Inc. acquired a new stake in shares of Upbound Group during the second quarter worth approximately $42,000. Finally, Allspring Global Investments Holdings LLC grew its position in Upbound Group by 232.0% during the first quarter. Allspring Global Investments Holdings LLC now owns 1,640 shares of the company’s stock valued at $58,000 after purchasing an additional 1,146 shares in the last quarter. Institutional investors and hedge funds own 90.30% of the company’s stock.

Upbound Group Trading Up 0.8 %

The company has a debt-to-equity ratio of 2.21, a quick ratio of 0.84 and a current ratio of 3.96. The stock has a market cap of $1.61 billion, a price-to-earnings ratio of 30.06 and a beta of 2.00. The company’s 50 day simple moving average is $30.25 and its two-hundred day simple moving average is $31.43.

About Upbound Group

(Get Free Report)

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.