Should You Exit PROG Holdings (PRG) Considering its Sensitive Nature?

Diamond Hill Capital, an investment management company, released its “Small Cap Fund” second-quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter of 2023, markets were positive, and the US stocks rose over 8% (as measured by the Russell 3000 Index). The portfolio outperformed Russell 2000 Index in Q2 and returned 6.34%, bringing the YTD gains to 13.05%. Financial and consumer discretionary holdings were the source of relative strength in the quarter while the relative weakness came from consumer staples holdings and below-benchmark exposure to the information technology sector. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Diamond Hill Small Cap Fund highlighted stocks like PROG Holdings, Inc. (NYSE:PRG) in the second quarter 2023 investor letter. Based in Draper, Utah, PROG Holdings, Inc. (NYSE:PRG) is a fintech holding company. On July 31, 2023, PROG Holdings, Inc. (NYSE:PRG) stock closed at $40.58 per share. One-month return of PROG Holdings, Inc. (NYSE:PRG) was 22.27%, and its shares gained 119.11% of their value over the last 52 weeks. PROG Holdings, Inc. (NYSE:PRG) has a market capitalization of $1.897 billion.

Diamond Hill Small Cap Fund made the following comment about PROG Holdings, Inc. (NYSE:PRG) in its second quarter 2023 investor letter:

“We also exited virtual lease-to-own (VLTO) provider PROG Holdings, Inc. (NYSE:PRG). The company serves customers at the lower end of the credit spectrum, who tend to be more sensitive to the economy and inflation. We capitalized on shares’ recent rebound to exit our position.”

Photo by Clay Banks on Unsplash

PROG Holdings, Inc. (NYSE:PRG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held PROG Holdings, Inc. (NYSE:PRG) at the end of first quarter which was 18 in the previous quarter.

We discussed PROG Holdings, Inc. (NYSE:PRG) in another article and shared Diamond Hill Capital’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.