Progressive Corp Executive Sells $775K in Stock

In a recent event, Steven Broz, the Chief Information Officer of Progressive Corp, sold a portion of his shares in the company. Specifically, he sold 2,982 shares at a price of $260.00 each, totaling about $775,320.

This transaction took place on September 23, 2024, and was disclosed through a Form 4 filing with the Securities and Exchange Commission. The filing indicated that this sale was executed as part of a pre-arranged 10b5-1 trading plan that Broz had established on January 26, 2024.

Post-transaction, Broz retains ownership of 29,334.283 shares of Progressive Corp. While this sale marks a considerable divestment, he still holds a significant stake in the company.

Insider sales are often interpreted by investors and market analysts as indicators of an executive’s confidence in the company’s valuation and future trajectory. However, trades conducted under a 10b5-1 plan are scheduled in advance to mitigate concerns over insider trading, suggesting that Broz had planned this sale long before its execution.

Progressive Corp is based in Mayfield Village, Ohio, and is a prominent provider of various insurance products, including auto, residential, and commercial insurance. At the time of the sale, the company’s stock was trading at $260.00 per share, which set the total transaction amount.

Market participants tracking Progressive Corp are likely to continue observing insider sales as part of their assessment of the company’s financial condition and leadership outlook.

Additionally, Progressive Corp has received several upward revisions of its stock price target from various financial institutions. For instance, Goldman Sachs raised its target to $280, citing anticipated improvements in the personal auto insurance sector, while Roth/MKM increased their target to $290 following a robust performance in August. Keefe, Bruyette & Woods also revised their target to $280, expressing confidence in the company’s financial growth.

These adjustments coincide with Progressive’s August earnings report, revealing an operating income of $1.45 per share, which significantly exceeded expectations. The company reported a net income of $935.3 million, with net premiums written totaling $6.5 billion. Furthermore, Progressive’s personal auto policies-in-force grew by 14.8% year-over-year, with a sequential increase of 1.8%.

Analysts from Wells Fargo, Barclays, and BofA Securities have provided favorable assessments of Progressive’s recent performance, maintaining ratings of Overweight, Equal Weight, and Buy respectively. In terms of leadership changes, the company announced the upcoming retirement of Vice President and Chief Accounting Officer, Mariann Wojtkun Marshall, in mid-2025, as well as the resignation of board member Danelle M. Barrett for health-related reasons.

For investors analyzing Progressive Corp, it is important to consider the company’s overall market presence. The company currently has a market capitalization of approximately $149.73 billion, underscoring its significant role in the insurance market.

Regarding valuation, Progressive Corp’s Price to Earnings (P/E) ratio is 21.79, with an adjusted P/E for the last twelve months of 21.84. This indicates stable earnings potential relative to the stock price. The Price to Book (P/B) ratio stands at 6.42, signaling that the stock is valued at a premium compared to its book value.

Investors may find encouragement in the company’s revenue growth, which is reported at 21.33% over the last twelve months. This growth trend suggests strong potential for profitability. Additionally, Progressive has maintained a record of consistent dividend payments for 15 years, reflecting financial stability and a commitment to returning value to shareholders.

Overall, Progressive Corp continues to be a focus for investors as they analyze its financial status and market potential.