The Progressive Corporation (PGR) Shares: Cheap or Risky?


The Progressive Corporation (NYSE:PGR) saw an upside of 1.63% to close Tuesday at $129.19 after adding $2.07 on the day. The 5-day average trading volume is 2,367,600 shares of the company’s common stock. It has gained $130.77 in the past week and touched a new high 1 time within the past 5 days. An average of 1,881,635 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 2,240,112.

PGR’s 1-month performance is 0.05% or -$0.25 on its low of $125.31 reached on 01/19/23. The company’s shares have touched a 52-week low of $100.81 and high of $135.45, with the stock’s rally to the 52-week high happening on 01/09/23. YTD, PGR has lost -0.40% or -$0.52 and has reached a new high 5 times. However, the current price is down -4.62% from the 52-week high price.

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Insider Transactions

PGR stock investors last saw insider trading activity on Jan 04.Griffith Susan Patricia (President and CEO) most recently sold 26,885 shares at $130.36 per share on Jan 04. This transaction cost the insider $3,504,729. Chief Strategy Officer, Quigg Andrew J, sold 1,821 shares at a price of $130.36 on Jan 04. Then, on Jan 04, Claims President Murphy John Jo sold 4,590 shares at a price of $130.36 per share. This transaction amounted to $598,352.

Valuation Metrics

PGR stock has a beta of 0.48. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 1.53 while the price-to-book (PB) in the most recent quarter is 5.29, with the price to cash flow ratio at 15.03.

As well, the company’s long term debt to equity for the quarter ending September 29 was 0.45, while the total debt to equity was 0.45. The firm’s gross profit as reported stood at $4.21 billion against revenue of $47.7 billion.

Earnings Surprise

For the quarterly period ending September 29 this year, Net income grew 4.77% to $117.4 million, while revenue of -$549.6 million was 568.14% off the previous quarter. Analysts expected PGR to announce $0.89 per share in earnings in its latest quarter, but it posted $0.49, representing a -44.90% surprise. Shareholders hold equity totaling $585.07 million.

Let’s look briefly at The Progressive Corporation (PGR) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 24 January was 47.77% to suggest the stock is trending Neutral, with historical volatility in this time period at 21.31%.

The stock’s 5-day moving average is $127.62, reflecting a -1.15% or -$1.50 change from its current price. PGR is currently trading +0.46% above its 20-day SMA, +3.98% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +1.17% and SMA200 by+10.54%.

Stochastic %K and %D was 26.33% and 17.50% and the average true range (ATR) pointed at 2.48. The RSI (14) points at 48.48%, while the 14-day stochastic is at 38.26% with the period’s ATR at 2.50. The stock’s 9-day MACD Oscillator is pointing at -1.76 and -2.74 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for The Progressive Corporation (NYSE: PGR), BMO Capital Markets launched coverage with an Outperform rating. Analysts offering their rating for PGR stock have a consensus rating for the stock as Hold. Currently, 4 brokerage advisors rate PGR as a “sell,”, while 9 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 1 rates the stock as overweight while 7 have offered a “buy” rating.

What is PGR’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $100.00 and a high of $173.00, with their median price target at $137.00. Looking at these predictions, the average price target given by analysts is for The Progressive Corporation (PGR) stock is $136.00.


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