Upbound Group (NASDAQ:UPBD) Shares Up 9.6% on Better-Than-Expected Earnings

Upbound Group, Inc. (NASDAQ:UPBD) traded up 9.6% during mid-day trading on Thursday following a better than expected earnings announcement. The stock traded as high as $23.98 and last traded at $22.89. 361,864 shares were traded during trading, a decline of 45% from the average session volume of 662,583 shares. The stock had previously closed at $20.88.

The company reported $1.01 earnings per share for the quarter, beating analysts’ consensus estimates of $0.97 by $0.04. Upbound Group had a net margin of 1.85% and a return on equity of 36.08%. The firm had revenue of $1.20 billion during the quarter, compared to the consensus estimate of $1.17 billion. During the same period in the prior year, the firm earned $1.05 EPS. The company’s revenue was up 10.8% compared to the same quarter last year. Upbound Group has set its Q1 2026 guidance at 1.050-1.150 EPS and its FY 2026 guidance at 4.000-4.350 EPS.

Upbound Group Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, January 6th. Investors of record on Wednesday, December 17th were issued a $0.39 dividend. The ex-dividend date of this dividend was Wednesday, December 17th. This represents a $1.56 annualized dividend and a yield of 6.9%. Upbound Group’s dividend payout ratio (DPR) is 107.59%.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on UPBD. TD Cowen reiterated a “buy” rating on shares of Upbound Group in a research report on Thursday, January 8th. Weiss Ratings restated a “hold (c-)” rating on shares of Upbound Group in a research note on Monday, December 29th. BTIG Research cut their price objective on shares of Upbound Group from $40.00 to $28.00 and set a “buy” rating for the company in a report on Friday, October 31st. Zacks Research cut shares of Upbound Group from a “hold” rating to a “strong sell” rating in a report on Thursday, February 12th. Finally, Wall Street Zen downgraded Upbound Group from a “buy” rating to a “hold” rating in a research report on Saturday, January 17th. Four investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Upbound Group has an average rating of “Moderate Buy” and an average target price of $32.25.

Insider Transactions at Upbound Group

In other news, Director Jeffrey J. Brown purchased 2,502 shares of Upbound Group stock in a transaction dated Tuesday, January 6th. The stock was purchased at an average cost of $17.68 per share, for a total transaction of $44,235.36. Following the transaction, the director directly owned 92,972 shares of the company’s stock, valued at approximately $1,643,744.96. This trade represents a 2.77% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this hyperlink. 2.60% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Upbound Group

Several large investors have recently added to or reduced their stakes in the business. The Manufacturers Life Insurance Company grew its position in Upbound Group by 1.9% during the second quarter. The Manufacturers Life Insurance Company now owns 25,705 shares of the company’s stock worth $645,000 after buying an additional 482 shares in the last quarter. Amalgamated Bank boosted its position in shares of Upbound Group by 3.4% during the 3rd quarter. Amalgamated Bank now owns 15,275 shares of the company’s stock valued at $361,000 after acquiring an additional 509 shares during the last quarter. Public Employees Retirement System of Ohio grew its holdings in shares of Upbound Group by 18.7% during the fourth quarter. Public Employees Retirement System of Ohio now owns 3,400 shares of the company’s stock worth $60,000 after purchasing an additional 535 shares in the last quarter. Allianz Asset Management GmbH grew its holdings in shares of Upbound Group by 0.7% during the second quarter. Allianz Asset Management GmbH now owns 84,556 shares of the company’s stock worth $2,122,000 after purchasing an additional 621 shares in the last quarter. Finally, Nisa Investment Advisors LLC increased its position in shares of Upbound Group by 5.5% in the second quarter. Nisa Investment Advisors LLC now owns 12,183 shares of the company’s stock worth $311,000 after purchasing an additional 638 shares during the last quarter. Institutional investors own 90.30% of the company’s stock.

Upbound Group Price Performance

The firm has a market capitalization of $1.32 billion, a PE ratio of 15.68 and a beta of 1.88. The company has a debt-to-equity ratio of 2.25, a current ratio of 3.16 and a quick ratio of 0.98. The business’s 50 day moving average is $18.99 and its two-hundred day moving average is $20.89.

Upbound Group Company Profile

Upbound Group, Inc leases household durable goods to customers on a lease-to-own basis in the United States, Puerto Rico, and Mexico. It operates through four segments: Rent-A-Center, Acima, Mexico, and Franchising. The company's brands, such as Rent-A-Center and Acima that facilitate consumer transactions across a range of store-based and virtual channels. It offers furniture comprising mattresses, tires, consumer electronics, appliances, tools, handbags, computers, smartphones, and accessories.