Aaron’s (NYSE:PRG) Shares Down 5.8% – Here’s Why

Aaron’s Holdings Company, Inc. (NYSE:PRG)’s share price was down 5.8% during mid-day trading on Tuesday . The company traded as low as $30.59 and last traded at $30.82. Approximately 272,389 shares were traded during mid-day trading, a decline of 45% from the average daily volume of 494,821 shares. The stock had previously closed at $32.72.

Analyst Ratings Changes

A number of equities analysts recently commented on PRG shares. 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 restated a “hold (c)” rating on shares of Aaron’s in a research report on Thursday, January 22nd. Zacks Research raised Aaron’s from a “hold” rating to a “strong-buy” rating in a research note on Friday, February 20th. B. Riley Financial started coverage on Aaron’s in a report on Tuesday, December 16th. They issued a “buy” rating and a $50.00 price objective on the stock. Finally, TD Cowen boosted their target price on Aaron’s from $42.00 to $43.00 and gave the company a “buy” rating in a research note on Wednesday. Two analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Buy” and an average target price of $41.80.

Aaron’s Stock Performance

The business has a fifty day moving average of $33.34 and a 200-day moving average of $32.02. The company has a market cap of $1.13 billion, a PE ratio of 8.00 and a beta of 1.71. The company has a current ratio of 4.71, a quick ratio of 2.32 and a debt-to-equity ratio of 0.80.

Aaron’s (NYSE:PRG) last released its quarterly earnings data on Wednesday, February 18th. The company reported $0.74 earnings per share for the quarter, topping the consensus estimate of $0.60 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 $525.36 million during the quarter, compared to analysts’ expectations of $581.82 million. During the same quarter last year, the business posted $0.80 EPS. The business’s revenue was down 5.2% on a year-over-year basis. Aaron’s has set its Q1 2026 guidance at 0.700-0.900 EPS and its FY 2026 guidance at 4.000-4.450 EPS. Equities research analysts anticipate that Aaron’s Holdings Company, Inc. will post 3.45 earnings per share for the current fiscal year.

Aaron’s Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 24th. Investors of record on Thursday, March 12th will be paid a $0.14 dividend. The ex-dividend date of this dividend is Thursday, March 12th. This is a positive change from Aaron’s’s previous quarterly dividend of $0.13. This represents a $0.56 dividend on an annualized basis and a yield of 2.0%. Aaron’s’s payout ratio is 15.56%.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Wealth Enhancement Advisory Services LLC boosted its stake in shares of Aaron’s by 142.5% during the 3rd quarter. Wealth Enhancement Advisory Services LLC now owns 62,609 shares of the company’s stock valued at $1,926,000 after purchasing an additional 36,788 shares in the last quarter. Vest Financial LLC bought a new position in Aaron’s in the third quarter worth about $1,312,000. Allianz Asset Management GmbH lifted its holdings in Aaron’s by 18.9% in the third quarter. Allianz Asset Management GmbH now owns 1,187,509 shares of the company’s stock worth $38,428,000 after buying an additional 188,835 shares during the period. Universal Beteiligungs und Servicegesellschaft mbH lifted its holdings in Aaron’s by 419.7% in the third quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 40,363 shares of the company’s stock worth $1,306,000 after buying an additional 32,597 shares during the period. Finally, Teacher Retirement System of Texas boosted its position in Aaron’s by 273.1% during the 3rd quarter. Teacher Retirement System of Texas now owns 112,383 shares of the company’s stock valued at $3,637,000 after acquiring an additional 82,265 shares in the last quarter. 97.92% of the stock is owned by hedge funds and other institutional investors.

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.