Morgan Stanley Bearish on Progressive Corporation (PGR)

The Progressive Corporation (NYSE:PGR) is one of the best dividend stocks in the financial sector. On November 11, Morgan Stanley analyst Bob Huang reiterated a Sell rating on the stock, assigning a price target of $214.

The analyst observed that there is a prominent slump in the company’s growth within the personal auto policies in force (PIF), and this lag is forecasted to last regardless of the solid seasonal trends. This points towards possible issues in sustaining positive growth trends. The company signaled notable share repurchases, similar to those carried out in 2011. However, Huang mentioned that the repurchases would impact the stock price in the near term, rather than contributing to long-term growth.

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In addition to that, Progressive Corp is operating in an extremely competitive environment, and Morgan Stanley added that October data indicates that personal auto policies in force (PIF) numbers may fall short of estimates. While the company’s valuation seems more promising since the last rating, it is imperative that it remains ahead of competitive and inflationary pressure. While these factors became the basis for Morgan Stanley’s Sell rating, the management seems positive that upcoming tariffs might be less intense.

In an update independent from the analyst action, The Progressive Corporation (NYSE:PGR)’s Chief Information Officer, Steven Broz, sold 1,345 shares of the company on November 11. The transaction amounted to $295900 in total. Broz now owns 29042.793 units of Progressive Corp stock.

The Progressive Corporation (NYSE:PGR) is an insurance provider offering a strong portfolio that includes personal auto, specialty vehicle, homeowners, renters, and commercial auto policies.

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