Progressive’s Strong Margins and Efficient Management Justify Buy Rating Despite Policy Growth Slowdown

Joshua Shanker, an analyst from Bank of America Securities, reiterated the Buy rating on Progressive (PGR – Research Report). The associated price target was raised to $326.00.

Joshua Shanker has given his Buy rating due to a combination of factors, including Progressive’s strong underwriting margins and favorable loss reserves development. Despite a slowdown in policy count growth, the company has maintained a combined ratio that is better than expected, indicating efficient management of claims and expenses.
Shanker also notes that while there is a slight decline in forward EPS forecasts, the price objective has been raised due to the company’s ability to maintain strong margins. The expectation is that any short-term volatility in share price, driven by fluctuations in policy growth, should be viewed as a buying opportunity given the company’s robust financial performance.

Based on the recent corporate insider activity of 107 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PGR in relation to earlier this year.