Progress Software (NASDAQ:PRGS) Shares Gap Up Following Strong Earnings

Progress Software Co. (NASDAQ:PRGS - Get Free Report)'s share price gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $51.51, but opened at $54.50. Progress Software shares last traded at $55.80, with a volume of 442,872 shares trading hands.

The software maker reported $1.31 EPS for the quarter, topping the consensus estimate of $1.04 by $0.27. Progress Software had a net margin of 9.08% and a return on equity of 41.56%. The company had revenue of $238.02 million for the quarter, compared to analyst estimates of $235.64 million. During the same quarter in the prior year, the business posted $1.25 EPS. Progress Software's quarterly revenue was up 28.9% on a year-over-year basis.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on the company. StockNews.com downgraded Progress Software from a "strong-buy" rating to a "buy" rating in a research note on Thursday, January 23rd. Citigroup increased their price target on Progress Software from $65.00 to $68.00 and gave the company a "neutral" rating in a report on Friday, January 17th. Wedbush restated an "outperform" rating and issued a $75.00 price objective on shares of Progress Software in a research note on Tuesday. DA Davidson reiterated a "buy" rating and issued a $75.00 target price on shares of Progress Software in a research note on Tuesday, January 21st. Finally, Guggenheim reissued a "buy" rating and set a $83.00 target price on shares of Progress Software in a research report on Tuesday. Two investment analysts have rated the stock with a hold rating and five have issued a buy rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $75.17.

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Insider Buying and Selling

In other Progress Software news, CFO Anthony Folger sold 15,000 shares of the company's stock in a transaction that occurred on Monday, February 3rd. The stock was sold at an average price of $56.30, for a total value of $844,500.00. Following the completion of the transaction, the chief financial officer now owns 44,564 shares of the company's stock, valued at $2,508,953.20. This represents a 25.18 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CAO Domenic Lococo sold 1,000 shares of Progress Software stock in a transaction that occurred on Monday, February 3rd. The stock was sold at an average price of $56.24, for a total value of $56,240.00. Following the sale, the chief accounting officer now directly owns 4,303 shares in the company, valued at $242,000.72. The trade was a 18.86 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 17,482 shares of company stock valued at $984,621. 3.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Universal Beteiligungs und Servicegesellschaft mbH acquired a new position in shares of Progress Software in the 4th quarter valued at $7,966,000. Mackenzie Financial Corp increased its stake in Progress Software by 22.2% in the fourth quarter. Mackenzie Financial Corp now owns 36,562 shares of the software maker's stock valued at $2,382,000 after acquiring an additional 6,640 shares during the period. Orion Capital Management LLC acquired a new position in Progress Software in the fourth quarter worth about $33,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in Progress Software by 17.5% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 142,639 shares of the software maker's stock worth $9,293,000 after purchasing an additional 21,289 shares in the last quarter. Finally, Woodline Partners LP lifted its stake in Progress Software by 9.9% during the fourth quarter. Woodline Partners LP now owns 109,072 shares of the software maker's stock worth $7,106,000 after purchasing an additional 9,789 shares during the period.

Progress Software Stock Performance

The company has a debt-to-equity ratio of 3.48, a quick ratio of 0.81 and a current ratio of 0.81. The firm has a 50 day moving average price of $55.75 and a two-hundred day moving average price of $62.06. The company has a market capitalization of $2.50 billion, a P/E ratio of 37.17, a price-to-earnings-growth ratio of 2.82 and a beta of 0.88.

Progress Software Company Profile

Progress Software Corporation develops, deploys, and manages business applications in the United States and internationally. The company offers OpenEdge, an application development platform for running business-critical applications; Chef, a DevOps/DevSecOps automation software; Developer Tools that consists of software development tooling collection, including .NET and JavaScript UI components for web, desktop and mobile applications, reporting and report management tools, and automated testing and mocking tools; Kemp LoadMaster, an application delivery and security product offering cloud-native, and virtual and hardware load balancers; and Sitefinity, a digital experience platform foundation delivering intelligent and ROI-driving tools for marketers.