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Here’s what drove PROG Holdings’ (PRG) earnings and free cash flow

Here’s what drove PROG Holdings’ (PRG) earnings and free cash flow

Investment management company Vulcan Value Partners recently published its investor letter for the third quarter of 2024. A copy of the letter can be downloaded here. Although the company is pleased with the results, quarterly results were mixed during the quarter. The company took advantage of stock price volatility by allocating capital to companies with better value for money. For the quarter, the fund’s large-cap composite returned a net return of 8.2%, its small-cap composite returned a net return of 9.1%, its focus composite returned a net return of 5.6%, its focus plus Composite a return of 5.9% and the all-cap composite a return of 8.1% net. For more information on the fund’s best stocks in 2024, see the top five holdings.

Vulcan Value Partners highlighted stocks like PROG Holdings, Inc. (NYSE:PRG) in its third quarter 2023 investor letter. PROG Holdings, Inc. (NYSE:PRG), based in Draper, Utah, is a financial technology holding company. PROG Holdings, Inc. (NYSE:PRG)’s one-month return was 1.39%, and its shares have gained 69.58% of their value over the past 52 weeks. On October 16, 2024, PROG Holdings, Inc. (NYSE:PRG) stock closed at $49.50 per share with a market cap of $2.095 billion.

Vulcan Value Partners stated the following regarding PROG Holdings, Inc. (NYSE:PRG) in its third quarter 2024 investor letter:

PROG Holdings, Inc. (NYSE:PRG) is a lease-to-own provider of financing solutions for non-prime borrowers with a national dealer partner network. Recently, top lenders have tightened their underwriting standards as consumer conditions tighten. These consumers have turned to PROG Holdings, which has increased company earnings and free cash flow.”

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PROG Holdings, Inc. (NYSE:PRG) is not on our list of the 31 most popular stocks among hedge funds. According to our database, there were 25 hedge fund portfolios owned by PROG Holdings, Inc. (NYSE:PRG) at the end of the second quarter, up from 18 in the previous quarter. Although we consider PROG Holdings, Inc. (NYSE:PRG)’s potential as a Recognizing investment, we believe AI stocks are more promising to deliver higher returns, within a shorter time frame. If you’re looking for an AI stock that has the same promise as NVIDIA but costs less than five times its earnings, check out our report on it cheapest AI stock.

You can also find additional investor letters from hedge funds and other leading investors on our Q3 2024 Hedge Fund Investor Letters page.

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Disclosure: None. This article was originally published on Insider Monkey.