Upbound Group (NASDAQ:UPBD) Shares Cross Above 200 Day Moving Average – Time to Sell?

Upbound Group, Inc. (NASDAQ:UPBD)’s stock price passed above its two hundred day moving average during trading on Thursday. The stock has a two hundred day moving average of $18.87 and traded as high as $20.13. Upbound Group shares last traded at $19.98, with a volume of 3,153,023 shares.

Key Upbound Group News

Here are the key news stories impacting Upbound Group this week:

• Positive Sentiment: Q3 earnings and revenue exceeded expectations: Upbound reported adjusted earnings of $1.01 per share, topping estimates of approximately $0.89–$0.91, while revenue of $1.15 billion surpassed the roughly $1.12 billion consensus. EPS also improved from $1.00 a year earlier. Upbound Group Q3 Earnings Report
• Positive Sentiment: Management highlighted cash flow and margin gains: The earnings call emphasized improved cash generation, margin expansion and opportunities to support future growth. These factors may reinforce investor confidence in the company’s operating performance and financial flexibility. Upbound Group Q3 Earnings Call Highlights
• Positive Sentiment: Director bought shares: Director Jeffrey Brown purchased 2,764 shares for approximately $47,016, increasing his direct ownership by 2.88%. The insider purchase offers a supportive sentiment signal, though it is relatively small compared with the company’s overall market value. Upbound Group Director Share Purchase
• Neutral Sentiment: Analyst sentiment remains mixed: The average price target is about $27.50, but coverage is concentrated around “Hold” ratings, with some firms recently lowering targets or downgrading the shares. This suggests potential upside is recognized, but conviction remains limited.
• Negative Sentiment: Revenue declined year over year: Quarterly revenue fell 1.3% from the prior-year period, indicating that the earnings beat was driven more by profitability and execution than by top-line growth.
• Negative Sentiment: Dividend sustainability warrants attention: Upbound’s quarterly dividend is $0.39, or $1.56 annualized, producing a yield near 7.8%. Its reported payout ratio above 100% could constrain flexibility if earnings or cash flow weaken.

Wall Street Analyst Weigh In

A number of research analysts have commented on UPBD shares. Zacks Research upgraded shares of Upbound Group from a “strong sell” rating to a “hold” rating in a research note on Monday, September 28th. TD Cowen cut their target price on Upbound Group from $27.00 to $26.00 and set a “buy” rating for the company in a research report on Friday. BTIG Research lowered Upbound Group from a “buy” rating to a “neutral” rating and set a $28.00 price target on the stock. in a research note on Friday, July 31st. Weiss Ratings cut Upbound Group from a “hold (c)” rating to a “hold (c-)” rating in a research report on Monday, September 21st. Finally, Wall Street Zen cut Upbound Group from a “buy” rating to a “hold” rating in a research report on Saturday, October 24th. One analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Upbound Group has an average rating of “Hold” and a consensus price target of $27.00.

Upbound Group Stock Performance

The company has a current ratio of 3.22, a quick ratio of 0.97 and a debt-to-equity ratio of 1.80. The company has a market cap of $1.21 billion, a price-to-earnings ratio of 10.89 and a beta of 1.78. The stock has a 50 day moving average price of $17.23 and a two-hundred day moving average price of $18.88.

Upbound Group (NASDAQ:UPBD) last issued its earnings results on Thursday, October 29th. The company reported $1.01 EPS for the quarter, beating the consensus estimate of $0.91 by $0.10. Upbound Group had a net margin of 2.36% and a return on equity of 33.81%. The firm had revenue of $1.15 billion during the quarter, compared to the consensus estimate of $1.12 billion. During the same quarter in the prior year, the firm earned $1.00 earnings per share. The business’s quarterly revenue was down 1.3% on a year-over-year basis. Analysts predict that Upbound Group, Inc. will post 4.20 EPS for the current year.

Upbound Group Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, October 27th. Shareholders of record on Tuesday, October 6th were paid a $0.39 dividend. The ex-dividend date of this dividend was Tuesday, October 6th. This represents a $1.56 annualized dividend and a dividend yield of 7.5%. Upbound Group’s dividend payout ratio (DPR) is currently 82.11%.

Insider Transactions at Upbound Group

In other news, Director Jeffrey Brown acquired 2,764 shares of Upbound Group stock in a transaction dated Tuesday, October 27th. The stock was bought at an average cost of $17.01 per share, with a total value of $47,015.64. Following the completion of the transaction, the director directly owned 98,898 shares of the company’s stock, valued at approximately $1,682,254.98. This represents a 2.88% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Anthony Blasquez sold 10,000 shares of the stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $18.85, for a total value of $188,500.00. Following the transaction, the executive vice president owned 43,717 shares of the company’s stock, valued at approximately $824,065.45. The trade was a 18.62% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 1.20% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the business. BlackRock Inc. bought a new position in shares of Upbound Group during the 2nd quarter worth approximately $194,216,000. Dimensional Fund Advisors LP raised its stake in Upbound Group by 15.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,394,770 shares of the company’s stock valued at $43,227,000 after acquiring an additional 327,203 shares during the period. Ieq Capital LLC bought a new stake in Upbound Group in the 2nd quarter valued at $37,565,000. Bank of New York Mellon Corp acquired a new stake in Upbound Group during the 2nd quarter valued at $18,862,000. Finally, Pacer Advisors Inc. acquired a new stake in Upbound Group during the 1st quarter valued at $7,455,000. Institutional investors and hedge funds own 90.30% of the company’s stock.

Upbound Group Company Profile

Upbound Group, Inc is a provider of consumer leasing and retail solutions, operating primarily through its Rent-A-Center and Acima brands. The company enables customers to obtain merchandise through flexible lease-to-own agreements and related payment options, serving consumers who may prefer alternatives to traditional retail financing.

Its Rent-A-Center business operates company-owned and franchised locations, as well as digital channels, offering furniture, appliances, electronics, computers, smartphones and other household goods.