Shares of Upbound Group, Inc. (NASDAQ:UPBD) have been assigned a consensus recommendation of “Moderate Buy” by seven brokerages covering the firm, as reported by MarketBeat. Two analysts have issued a hold rating while five have designated the stock as a buy. The average target price over the next twelve months stands at $32.25, reflecting a positive outlook on the company’s performance.
Analysts Upgrade Recommendations
Recent reports indicate a shift in analyst ratings for Upbound Group. Notably, Loop Capital upgraded the company from a “hold” to a “buy” rating, establishing a target price of $36.00 on September 15, 2024. Similarly, Wall Street Zen also moved its rating from hold to buy in a report dated December 20, 2024. In contrast, BTIG Research reduced its target price from $40.00 to $28.00 while maintaining a buy rating. In late December, Zacks Research changed its rating from “strong sell” to “hold,” and Weiss Ratings reaffirmed a “hold (C-)” rating.
Financial Performance and Dividend Declaration
Upbound Group recently released its quarterly earnings on October 30, 2024. The company reported an earnings per share (EPS) of $1.00, exceeding the consensus estimate of $0.98 by $0.02. Revenue for the quarter reached $1.16 billion, slightly above analyst expectations of $1.15 billion. The firm noted a return on equity of 36.08% and a net margin of 1.85%. Year-over-year, revenue increased by 9.0%, up from an EPS of $0.95 reported in the same quarter last year.
In addition to its earnings report, Upbound Group declared a quarterly dividend of $0.39 per share, payable on January 6, 2025. This translates to an annualized dividend of $1.56 and a yield of 8.2%. The ex-dividend date was December 17, 2024, and the company’s current dividend payout ratio is 107.59%.
Insider Activity and Institutional Investments
In related news, Director Jeffrey J. Brown acquired 2,502 shares of Upbound Group stock on January 6, 2025, at an average price of $17.68 per share, totaling approximately $44,235.36. Following this transaction, Brown holds 92,972 shares valued at nearly $1.64 million, representing a 2.77% increase in his holdings. Company insiders currently own 2.60% of Upbound Group’s stock.
Several institutional investors have recently adjusted their stakes in Upbound Group. FNY Investment Advisers LLC acquired a new position valued at around $32,000 during the third quarter. Quarry LP significantly increased its stake by 913.1%, owning 1,388 shares post-purchase, now valued at approximately $33,000. Additionally, Security National Bank and GAMMA Investing LLC have also raised their stakes, contributing to a total of 90.30% of the stock held by institutional investors.
Upbound Group, Inc. specializes in leasing household durable goods on a lease-to-own basis across the United States, Puerto Rico, and Mexico. The company operates through four segments: Rent-A-Center, Acima, Mexico, and Franchising, offering a wide range of products including furniture, electronics, appliances, and more.
