Canaccord Genuity analyst Richard Close maintained a Hold rating on Progyny yesterday and set a price target of $23.00.
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Richard Close’s rating is based on Progyny’s recent performance and future prospects. The company showed a strong second-quarter performance and raised its guidance, which is a positive sign as it attempts to regain investor trust after experiencing variability in utilization and consumption, as well as the loss of a significant client, Amazon. Despite these challenges, the business is characterized as stable, which is encouraging given the current economic uncertainties affecting its clients.
However, there are still some concerns that justify the Hold rating. The initial stock volatility after the earnings report indicates investor apprehension, although the stock has since rebounded. Progyny’s management is optimistic about adding approximately 1 million lives to its platform during the current selling season, but this goal is yet to be fully realized. The company has shown three consecutive quarters of revenue and adjusted EBITDA growth, which is rebuilding confidence, yet the full impact of these developments remains to be seen. Therefore, the Hold rating reflects a cautious optimism as the company navigates its current challenges and opportunities.
Based on the recent corporate insider activity of 42 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 PGNY in relation to earlier this year.