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Progressive (PGR) Receives a Hold from B.Riley FBR


In a report released yesterday, Randy Binner from B.Riley FBR maintained a Hold rating on Progressive (NYSE: PGR), with a price target of $68. The company’s shares closed yesterday at $68.74, close to its 52-week high of $69.01.

Binner wrote:

“On September 13, PGR reported August operating EPS of $0.36, in line with our estimate. Top- line growth was higher than our forecast. Net premiums written (NPW) growth was +17.2% Y/Y versus our +15.0% estimate. The reported underlying loss ratio (ex-cat and PYD) came in at 69.7% in August, higher than our 69.0% estimate. PGR reported cat losses of $48M, in line with our forecast, and favorable prior year development (PYD) of $5.8M was better than our forecast of no reserve development. The expense ratio was higher at 20.9% versus our 20.3% estimate. Net investment income came in higher at $74M versus our $68M estimate. Taxes were again favorable due to tax benefits associated with renewable energy credits earned on prior investments. The company did not repurchase any shares in the month.”

According to TipRanks.com, Binner is a 5-star analyst with an average return of 16.3% and a 70.2% success rate. Binner covers the Financial sector, focusing on stocks such as Health Insurance Innovations, Brighthouse Financial Inc, and Prudential Financial Inc.

Progressive has an analyst consensus of Moderate Buy, with a price target consensus of $65.88, representing a -4.2% downside. In a report released yesterday, Wells Fargo also maintained a Hold rating on the stock with a $64 price target.

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Progressive’s market cap is currently $40.04B and has a P/E ratio of 18.23. The company has a Price to Book ratio of 3.81.

Based on the recent corporate insider activity of 90 insiders, corporate insider sentiment is negative on the stock.

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Progressive Corp. is an insurance holding company, which engages in the provision of personal and commercial auto insurance, residential property insurance, and other specialty property-casualty insurance and related services. It operates through the following segments: Personal Lines, Commercial Lines, Property, and Other Indemnity.