Insider Confidence On Display: JEFFREY BROWN Acquires $516K In Upbound Group Stock

It was revealed in a recent SEC filing that JEFFREY BROWN, Board Member at Upbound Group UPBD made a noteworthy insider purchase on May 7,.

What Happened: BROWN demonstrated confidence in Upbound Group by purchasing 21,730 shares, as reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the transaction is $516,087.

The latest update on Wednesday morning shows Upbound Group shares up by 2.44%, trading at $23.89.

Delving into Upbound Group's Background

Upbound Group Inc is an omnichannel platform company committed to elevating financial opportunity for all through inclusive, and technology-driven financial solutions that address the evolving needs and aspirations of consumers. It has three operating segments; The Rent-A-Center Business segment operates lease-to-own stores, the Acima segment offers the lease-to-own transaction to consumers who do not qualify for financing from the traditional retailer, and also offers the lease-to-own transaction through virtual offering solutions across e-commerce, digital, and mobile channels, Mexico segment offers lease-to-own stores in Mexico. The franchising segment offers the sale of rental merchandise to its franchisees. The company derives a majority of its revenue from the Acima segment.

Financial Insights: Upbound Group

Revenue Growth: Over the 3 months period, Upbound Group showcased positive performance, achieving a revenue growth rate of 7.34% as of 31 March, 2025. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.

Profitability Metrics: Unlocking Value

• Gross Margin: With a high gross margin of 46.77%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Upbound Group's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.44.

Debt Management: Upbound Group's debt-to-equity ratio is notably higher than the industry average. With a ratio of 2.66, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: The P/E ratio of 10.95 is lower than the industry average, implying a discounted valuation for Upbound Group's stock.

• Price to Sales (P/S) Ratio: With a P/S ratio of 0.3 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 1.76, Upbound Group presents an attractive value opportunity.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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Why Insider Transactions Are Key in Investment Decisions

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Cracking Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Upbound Group's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.