Jeffrey J. Brown, a director at Upbound Group, Inc. (NASDAQ:UPBD), has recently acquired additional shares in the company. According to a recent SEC filing, Brown purchased 1,065 shares of common stock on October 22, 2024, at a price of $29.25 per share, totaling approximately $31,151. This transaction was conducted through a dividend reinvestment feature of a brokerage account maintained by Brown Equity Partners, LLC, which is owned by Brown.
In addition to this acquisition, Brown also received 886 Director Deferred Stock Units, which are fully vested and will be converted into common stock upon the termination of his service on the board. Following these transactions, Brown holds a total of 115,352 shares in Upbound Group.
In other recent news, Upbound Group has made notable strides in its financial performance. The company reported significant growth in the second quarter of 2024, with revenues nearing $1.1 billion and a notable increase in non-GAAP earnings per share to $1.04. This robust growth was driven by a 2% increase at Rent-A-Center (NASDAQ:UPBD) and a 19% surge at Acima, attributed to an expansion in merchant count and improved productivity. In light of these results, Upbound Group has raised its full-year guidance, reflecting confidence in achieving updated revenue, adjusted EBITDA, and non-GAAP diluted EPS targets.
In parallel, Loop Capital maintained its Hold rating on Upbound Group, with a steady price target of $36.00. This decision follows meetings with Upbound's senior management, which left analysts feeling optimistic about the company, particularly its Acima segment, due to its potential for growth in Gross Merchandise Volume (GMV) and an expected shift in credit trends. Despite this positive outlook, Loop Capital is waiting for tangible signs of profitability improvements before altering its rating.
These recent developments underscore Upbound Group's commitment to adapting to economic shifts and sustaining profitable growth. The company's strategic investments in technology and digital platforms, along with its focus on merchant partnerships, are key factors in its strong performance trajectory.
InvestingPro Insights
Jeffrey J. Brown's recent acquisition of Upbound Group (NASDAQ:UPBD) shares aligns with several positive indicators highlighted by InvestingPro. The company's stock has experienced significant volatility recently, with InvestingPro data showing a 9.71% decline in the past week. This recent dip might have presented an attractive entry point for Brown, especially considering the stock's current price is approximately 70% of its 52-week high.
One of the key InvestingPro Tips notes that Upbound Group "pays a significant dividend to shareholders." This is substantiated by the current dividend yield of 5.36%, which is notably high. The dividend growth rate of 8.82% over the last twelve months further underscores the company's commitment to rewarding shareholders. Brown's decision to reinvest dividends through his brokerage account suggests confidence in the company's long-term prospects.
Another relevant InvestingPro Tip indicates that "liquid assets exceed short term obligations," pointing to a solid financial position. This financial stability, combined with the company's profitability over the last twelve months, may have influenced Brown's decision to increase his stake.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips for Upbound Group, providing a deeper understanding of the company's financial health and market position.
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