Progressive (PGR) Shares Up 6.1% on Better-Than-Expected Earnings

Progressive Corp (NYSE:PGR) shares shot up 6.1% on Tuesday following a better than expected earnings announcement. The stock traded as high as $70.34 and last traded at $70.27. 5,447,950 shares were traded during trading, an increase of 61% from the average session volume of 3,382,758 shares. The stock had previously closed at $66.24.

The insurance provider reported $1.57 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.14 by $0.43. The company had revenue of $8.60 billion for the quarter, compared to the consensus estimate of $8.43 billion. Progressive had a return on equity of 21.84% and a net margin of 7.57%. Progressive’s quarterly revenue was up 20.5% compared to the same quarter last year. During the same period in the previous year, the business earned $0.38 earnings per share.

Several equities analysts have recently commented on PGR shares. Morgan Stanley boosted their price objective on Progressive from $64.00 to $68.00 and gave the company a “$60.39” rating in a research report on Wednesday, July 18th. Citigroup boosted their price objective on Progressive from $70.00 to $73.00 and gave the company a “neutral” rating in a research report on Friday, October 12th. B. Riley boosted their price objective on Progressive from $60.00 to $68.00 and gave the company a “neutral” rating in a research report on Tuesday, August 7th. Credit Suisse Group set a $79.00 price objective on Progressive and gave the company a “buy” rating in a research report on Monday. Finally, Wells Fargo & Co set a $64.00 price objective on Progressive and gave the company a “hold” rating in a research report on Tuesday, July 17th. One analyst has rated the stock with a sell rating, seven have assigned a hold rating, five have issued a buy rating and one has issued a strong buy rating to the company’s stock. The stock has an average rating of “Hold” and a consensus target price of $68.64.

In other news, CFO John P. Sauerland sold 12,000 shares of Progressive stock in a transaction dated Thursday, August 16th. The stock was sold at an average price of $64.25, for a total value of $771,000.00. Following the sale, the chief financial officer now directly owns 390,584 shares of the company’s stock, valued at $25,095,022. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Susan Patricia Griffith sold 12,600 shares of Progressive stock in a transaction dated Thursday, August 16th. The stock was sold at an average price of $64.14, for a total value of $808,164.00. Following the completion of the sale, the chief executive officer now directly owns 265,856 shares in the company, valued at $17,052,003.84. The disclosure for this sale can be found here. Insiders sold 74,600 shares of company stock worth $4,924,164 over the last 90 days. Company insiders own 0.70% of the company’s stock.

Several hedge funds have recently modified their holdings of the company. Artisan Partners Limited Partnership increased its holdings in shares of Progressive by 5.1% in the second quarter. Artisan Partners Limited Partnership now owns 17,946,090 shares of the insurance provider’s stock worth $1,061,511,000 after purchasing an additional 864,700 shares during the last quarter. Janus Henderson Group PLC increased its holdings in shares of Progressive by 10.2% in the second quarter. Janus Henderson Group PLC now owns 12,095,573 shares of the insurance provider’s stock worth $715,456,000 after purchasing an additional 1,122,013 shares during the last quarter. Renaissance Technologies LLC increased its holdings in shares of Progressive by 19.6% in the second quarter. Renaissance Technologies LLC now owns 7,094,900 shares of the insurance provider’s stock worth $419,663,000 after purchasing an additional 1,163,500 shares during the last quarter. Principal Financial Group Inc. increased its holdings in shares of Progressive by 1.0% in the first quarter. Principal Financial Group Inc. now owns 5,043,129 shares of the insurance provider’s stock worth $307,278,000 after purchasing an additional 47,656 shares during the last quarter. Finally, Bank of America Corp DE increased its holdings in shares of Progressive by 8.0% in the second quarter. Bank of America Corp DE now owns 4,595,539 shares of the insurance provider’s stock worth $271,827,000 after purchasing an additional 338,879 shares during the last quarter. 80.26% of the stock is currently owned by hedge funds and other institutional investors.

The company has a quick ratio of 0.43, a current ratio of 0.43 and a debt-to-equity ratio of 0.37. The firm has a market capitalization of $41.38 billion, a PE ratio of 26.87, a PEG ratio of 2.14 and a beta of 0.67.

Progressive Company Profile (NYSE:PGR)

The Progressive Corporation, through its subsidiaries, provides personal and commercial auto insurance, residential property insurance, and other specialty property-casualty insurance and related services primarily in the United States. Its Personal Lines segment writes insurance for personal autos, and recreational and other vehicles.

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