Shares of Upbound Group, Inc. (NASDAQ:UPBD) have garnered a consensus recommendation of “Moderate Buy” from the seven brokerages currently covering the company. As reported by MarketBeat, two analysts have assigned a hold rating, while five have recommended buying the stock. The average price target for the stock over the next twelve months stands at $32.25, reflecting a positive outlook among financial experts.
In recent weeks, several research firms have updated their ratings on Upbound Group. Loop Capital raised its rating from “hold” to “buy” with a target price of $36.00 as of September 15, 2023. Similarly, Wall Street Zen upgraded the stock from “hold” to “buy” in a note dated December 20, 2023. In contrast, BTIG Research lowered its target price from $40.00 to $28.00 while maintaining a “buy” rating on October 31, 2023. Additionally, Zacks Research shifted its stance from “strong sell” to “hold” on December 29, 2023, with Weiss Ratings also reaffirming a “hold (c-)” rating on the same date.
Financial Performance and Dividend Announcement
On October 30, 2023, Upbound Group released its quarterly earnings results, reporting an earnings per share (EPS) of $1.00, exceeding the consensus estimate of $0.98 by $0.02. The company generated revenue of $1.16 billion, slightly above the analyst estimates of $1.15 billion. This marked a 9.0% increase in revenue year-over-year. The firm’s return on equity was noted at 36.08%, with a net margin of 1.85%. Upbound Group has set its fiscal year 2025 guidance at EPS ranging from $4.050 to $4.150, while analysts anticipate an average EPS of $4.28 for the current fiscal year.
In addition to its earnings report, Upbound Group declared a quarterly dividend, which was paid on January 6, 2024. Shareholders of record as of December 17, 2023, received a dividend of $0.39 per share, translating to an annualized dividend of $1.56 and a dividend yield of 8.2%. The ex-dividend date was also December 17, 2023. Currently, Upbound Group’s dividend payout ratio stands at 107.59%.
Insider Trading and Institutional Investment
In related news, Jeffrey J. Brown, a director at Upbound Group, purchased 2,502 shares on January 6, 2024, at an average price of $17.68 per share, totaling approximately $44,235.36. Following this transaction, Brown’s ownership increased to 92,972 shares, valued at about $1,643,744.96. This acquisition reflects a 2.77% increase in his position within the company. The transaction was disclosed to the Securities and Exchange Commission.
Recently, several institutional investors have adjusted their stakes in Upbound Group. FNY Investment Advisers LLC entered a new position during the third quarter, investing around $32,000. Quarry LP significantly increased its stake by 913.1%, now owning 1,388 shares, valued at $33,000. Other notable investments include Security National Bank, which acquired a new position worth approximately $57,000, and GAMMA Investing LLC, which increased its stake by 414.1% during the second quarter.
Currently, approximately 90.30% of Upbound Group’s stock is held by institutional investors, reflecting strong confidence in the company’s market potential.
Upbound Group, Inc. leases household durable goods to customers on a lease-to-own basis across the United States, Puerto Rico, and Mexico. The company operates through multiple segments, including Rent-A-Center, Acima, Mexico, and Franchising, providing customers with access to a wide range of products from furniture to consumer electronics and appliances.
