Progress Software (PRGS) Sees Large Volume Increase Following Earnings Beat

Progress Software Co. (NASDAQ:PRGS) saw an uptick in trading volume on Thursday following a better than expected earnings announcement. 1,919,420 shares traded hands during trading, an increase of 244% from the previous session’s volume of 558,715 shares.The stock last traded at $50.55 and had previously closed at $43.67.

The software maker reported $0.67 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.54 by $0.13. Progress Software had a return on equity of 11.42% and a net margin of 11.48%. The firm had revenue of $116.30 million for the quarter, compared to analysts’ expectations of $114.33 million. During the same quarter in the previous year, the company earned $0.62 earnings per share. The firm’s quarterly revenue was down 1.4% compared to the same quarter last year.

The company also recently announced a quarterly dividend, which will be paid on Thursday, March 15th. Investors of record on Thursday, March 1st will be issued a dividend of $0.14 per share. The ex-dividend date of this dividend is Wednesday, February 28th. This represents a $0.56 annualized dividend and a yield of 1.11%. Progress Software’s payout ratio is 72.73%.

Progress Software announced that its Board of Directors has approved a stock buyback program on Wednesday, September 27th that permits the company to buyback $159.00 million in outstanding shares. This buyback authorization permits the software maker to buy up to 8.7% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s board of directors believes its shares are undervalued.

Several brokerages recently commented on PRGS. Benchmark reissued a “buy” rating and set a $47.00 target price (up previously from $42.00) on shares of Progress Software in a report on Tuesday, January 2nd. Zacks Investment Research cut Progress Software from a “buy” rating to a “hold” rating in a report on Saturday, September 23rd. Wedbush reissued a “neutral” rating and set a $32.00 target price on shares of Progress Software in a report on Monday, September 18th. Finally, ValuEngine cut Progress Software from a “buy” rating to a “hold” rating in a report on Friday, December 1st. Three analysts have rated the stock with a hold rating and two have given a buy rating to the company. The company presently has an average rating of “Hold” and an average target price of $40.33.

Hedge funds and other institutional investors have recently bought and sold shares of the business. Riverhead Capital Management LLC increased its holdings in shares of Progress Software by 76.5% in the second quarter. Riverhead Capital Management LLC now owns 3,530 shares of the software maker’s stock valued at $109,000 after buying an additional 1,530 shares in the last quarter. Public Employees Retirement System of Ohio increased its holdings in shares of Progress Software by 0.9% in the second quarter. Public Employees Retirement System of Ohio now owns 4,921 shares of the software maker’s stock valued at $152,000 after buying an additional 44 shares in the last quarter. Amalgamated Bank bought a new position in shares of Progress Software in the second quarter valued at $206,000. ETRADE Capital Management LLC bought a new position in shares of Progress Software in the second quarter valued at $213,000. Finally, Koch Industries Inc. bought a new position in shares of Progress Software in the second quarter valued at $223,000. 93.64% of the stock is currently owned by institutional investors.

The stock has a market cap of $2,420.00, a price-to-earnings ratio of 65.65 and a beta of 0.65. The company has a debt-to-equity ratio of 0.28, a quick ratio of 1.27 and a current ratio of 1.27.

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Progress Software Company Profile

Progress Software Corporation is engaged in application development. The Company operates through three segments: OpenEdge, Data Connectivity and Integration (DCI), and Application Development and Deployment (AppDev). The OpenEdge business segment provides the product enhancements and marketing support to its partner base.

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