53

UPBD

Upbound Group($UPBD) Director Signals Confidence With $516K Purchase Near Price Lows As Stock Rebounds 20%

05/07/2025 13:16

Sentiment

Summary

  • Jeffrey Brown, Director of Upbound Group Inc ($UPBD), made his largest insider purchase to date on May 6th, acquiring 21,730 shares ($516,087).
  • This purchase occurred when the stock price was near its one-year low, contrasting with executive selling in August 2024 when shares traded near peak values.
  • Upbound Group reported better-than-expected Q1 2025 results, with its December 2024 Brigit acquisition contributing to growth.

POSITIVE

  • Director Jeffrey Brown's consistent stock purchases and large May acquisition ($516,087) strongly suggest insider confidence.
  • EVP Fahmi Karam's March purchase ($296,930) also demonstrates insider conviction during the stock's decline.
  • Q1 2025 adjusted EPS of $1.00 exceeded expectations ($0.94), with total revenue increasing by 7.3%.
  • Acima segment's 13.5% growth and successful integration of Brigit acquisition are contributing to revenue.
  • The stock has rebounded more than 20% from April lows.

NEGATIVE

  • The company carries high net senior debt of $1.09 billion, which could be a financial burden.
  • Revenue in the Rent-A-Center segment declined by 4.9%.
  • Several high-ranking executives sold substantial shares at price peaks in August 2024.
  • Current stock price remains approximately 33% below July-August 2024 highs (over $36).

Expert

In the financial services sector, Upbound Group occupies a unique position in the credit-challenged consumer market. The recent Brigit acquisition demonstrates strategic evolution toward digital finance, enhancing growth potential alongside traditional rental operations. While insider buying signals and improved Q1 results are positive, high debt ratios and interest rate environment remain key risk factors.

Previous Closing Price

$22.94

+0.02(0.09%)

Average Insider Trading Data Over the Past Year

$24.61

Purchase Average Price

$33.23

Sale Average Price

$846.26K

Purchase Amount

$1.08M

Sale Amount

Transaction related to News

Trading Date

Filing Date

Insider

Title

Type

Avg. Price

Trans. Value

05/31/2025

05/31/2025

Sale

$

Jeffrey Brown, Director of Upbound Group Inc ($UPBD), executed his largest stock purchase to date on May 6th, acquiring 21,730 shares at an average price of $23.75 for a total investment of $516,087. This represents more than a 15-fold increase in dollar value compared to his previous regular purchases. Upbound Group provides rental and financial solutions to underserved consumers through its brands including Rent-A-Center, Acima, and the recently acquired Brigit. With approximately 2,300 retail locations across the U.S., Mexico, and Puerto Rico, the company has experienced significant stock price volatility in recent months. Brown's substantial purchase stands in stark contrast to his consistent but smaller buying pattern over the past 10 months. He previously acquired 1,031 shares ($30,744) in July 2024, 1,065 shares ($31,151) in October 2024, 1,146 shares ($33,245) in January 2025, and 1,694 shares ($33,694) in April 2025. While these regular purchases demonstrated his long-term confidence in the company, May's large acquisition is particularly noteworthy both in scale and timing. Looking at the stock's performance, Upbound Group shares climbed above $36 in late July to early August 2024, then gradually declined, falling below $20 in April 2025. As of early May 2025, the stock has rebounded to approximately $24. Brown's major purchase occurred when the share price was near its one-year low. Interestingly, several high-ranking executives sold shares in August 2024 when the stock was trading near its peak. EVP Ralph Montrone sold 15,000 shares at $32.48 ($487,200) on August 5th, EVP Transient Taylor sold 15,127 shares at $34.00 ($514,318) on August 26th, and Officer Anthony Blasquez sold 2,500 shares at $33.17 ($82,932) on August 27th. This executive selling pattern contrasts sharply with Brown's recent substantial purchase. Another notable insider transaction was EVP Fahmi Karam's purchase of 11,500 shares at an average price of $25.82 ($296,930) on March 10, 2025, when the stock was experiencing significant decline. Regarding financial performance, Upbound Group reported solid results for Q1 2025. Adjusted earnings per share reached $1.00, exceeding expectations of $0.94, while total revenue increased by 7.3% year-over-year to $1,176.4 million. The Acima segment led growth with a 13.5% increase, and the recently acquired Brigit contributed $31.9 million in revenue for February and March. In December 2024, Upbound Group announced the $460 million cash-and-stock acquisition of financial technology company Brigit. This strategic acquisition was designed to enhance product offerings for credit-poor consumers. The deal structured with an initial payment of $325 million plus additional cash payments contingent on Brigit's performance over two years. An external factor worth noting is that consumer lending firms, including Upbound Group, saw stock increases following Donald Trump's election victory in November 2024, driven by expectations of regulatory easing. However, financial data indicates the company carries net senior debt of $1.09 billion, a leverage position that investors should monitor carefully. Analyzing the insider trading patterns collectively, Brown's consistent purchases and recent large acquisition, along with Karam's buying during the downturn, can be interpreted as positive signals that insiders have confidence in the company at current price levels. The fact that insiders are committing significant personal capital suggests conviction in the company's long-term growth prospects. Furthermore, the stock's more than 20% recovery from April lows indicates the market is gradually recognizing Upbound Group's growth story and improved performance. However, investors should remain mindful of potential risk factors, including the high debt level and declining revenues in the Rent-A-Center segment. Considering both insider trading patterns and financial performance, while Upbound Group's stock may experience short-term volatility, the confident insider buying provides a positive signal regarding the company's medium to long-term investment value.

You can receive notifications when news is published.

news-alarmnews-alarm

Sign up and access more data free.

Sign up and access more data free.

  • Access advanced features of insider transaction screener.

  • Read insider transaction news without any limits.