Upbound Group, Inc. (NASDAQ:UPBD) Director Jeffrey J. Brown has recently purchased shares of the company's common stock, according to a new SEC filing. The transaction, which took place on April 22, involved the acquisition of 991 shares at a price of $30.68 per share, totaling approximately $30,403.
The purchase was made pursuant to a dividend reinvestment feature of a brokerage account maintained by Brown Equity Partners, LLC, which is owned by the reporting person. This transaction has increased Brown's direct holdings in Upbound Group to 83,138 shares.
Upbound Group, with its headquarters in Plano, Texas, specializes in equipment rental and leasing services. The company, incorporated in Delaware, has a history that traces back to its former names as Rent A Center Inc DE and Renters Choice Inc.
It is noteworthy that the shares were bought at a single price point, providing a clear indication of the value placed on the stock by the director at the time of the purchase. Investors often monitor such insider transactions as they can provide insights into how the company's top executives view the stock's value and prospects.
The filing also mentioned that Brown has fully vested and non-forfeitable Director Deferred Stock Units, which represent the right to receive common stock upon the termination of his service as a member of the board. However, the specifics regarding the number of units or their value were not disclosed in the transaction totals.
The SEC document was signed on behalf of Jeffrey J. Brown by attorney-in-fact Bryan Pechersky, with the signature date reported as April 24. It's important for investors to keep an eye on insider transactions like these, as they can sometimes provide valuable context to the stock's performance and future expectations.
InvestingPro Insights
Following the recent insider purchase by Director Jeffrey J. Brown, Upbound Group, Inc. (NASDAQ:UPBD) presents a mixed financial outlook according to InvestingPro data. The company's market capitalization currently stands at $1.73 billion, with a high price-to-earnings (P/E) ratio of -338.94, reflecting investor skepticism about current earnings. However, the adjusted P/E ratio for the last twelve months as of Q4 2023 is 790.86, indicating potential for future earnings growth as anticipated by the market.
The revenue for Upbound Group during the last twelve months as of Q4 2023 was $3.99 billion, with a gross profit margin of 50.65%, showcasing the company's ability to maintain a significant profit from its revenues. Despite a slight decline in revenue growth of -5.96% in the same period, the company has shown a quarterly revenue growth of 2.79% in Q1 2023, suggesting a recent uptick in sales.
InvestingPro Tips highlight that Upbound Group has a high shareholder yield and analysts predict the company will become profitable this year. These insights could be particularly relevant for investors considering the recent insider buying activity, as they may signal confidence in the company's future performance. Additionally, with liquid assets exceeding short-term obligations, the company appears to be in a solid financial position to meet its immediate liabilities.
For investors seeking a more comprehensive analysis, there are additional InvestingPro Tips available, which can provide deeper insights into Upbound Group's financial health and future prospects. Interested individuals can take advantage of a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to these valuable tips and data.
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