DA Davidson Reaffirms “Buy” Rating for Progress Software (NASDAQ:PRGS)

Progress Software (NASDAQ:PRGS)‘s stock had its “buy” rating restated by equities researchers at DA Davidson in a report issued on Friday, Benzinga reports. They currently have a $55.00 price target on the software maker’s stock. DA Davidson’s price target points to a potential upside of 51.75% from the stock’s previous close.

Other equities research analysts also recently issued research reports about the stock. Oppenheimer decreased their price target on shares of Progress Software from $57.00 to $50.00 and set an “outperform” rating on the stock in a research note on Wednesday, July 1st. Weiss Ratings raised shares of Progress Software from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Tuesday, August 11th. Guggenheim reaffirmed a “buy” rating and set a $83.00 target price on shares of Progress Software in a report on Wednesday, July 1st. Finally, Jefferies Financial Group raised shares of Progress Software to a “hold” rating in a report on Friday, September 25th. Five equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $52.17.

Progress Software Stock Down 0.9%

Shares of NASDAQ PRGS traded down $0.34 during mid-day trading on Friday, reaching $36.24. 292,060 shares of the company’s stock traded hands, compared to its average volume of 847,394. The business has a 50-day simple moving average of $42.09 and a 200 day simple moving average of $35.10. The company has a debt-to-equity ratio of 2.55, a current ratio of 0.81 and a quick ratio of 0.81. Progress Software has a 1-year low of $23.82 and a 1-year high of $47.37. The stock has a market cap of $1.49 billion, a P/E ratio of 16.67, a PEG ratio of 1.68 and a beta of 0.89.

Progress Software (NASDAQ:PRGS) last released its quarterly earnings results on Wednesday, September 30th. The software maker reported $1.69 earnings per share for the quarter, beating the consensus estimate of $1.52 by $0.17. The firm had revenue of $246.01 million for the quarter, compared to analysts’ expectations of $247.33 million. Progress Software had a return on equity of 43.68% and a net margin of 9.24%.The company’s revenue was down 1.5% compared to the same quarter last year. During the same quarter last year, the firm posted $0.44 EPS. Progress Software has set its Q4 2026 guidance at 1.240-1.330 EPS and its FY 2026 guidance at 6.150-6.230 EPS. On average, analysts expect that Progress Software will post 4.77 EPS for the current fiscal year.

Institutional Investors Weigh In On Progress Software

Several hedge funds have recently modified their holdings of the stock. Moody National Bank Trust Division raised its position in Progress Software by 1.3% during the second quarter. Moody National Bank Trust Division now owns 28,230 shares of the software maker’s stock valued at $948,000 after purchasing an additional 357 shares in the last quarter. GAMMA Investing LLC increased its holdings in shares of Progress Software by 23.9% in the second quarter. GAMMA Investing LLC now owns 2,126 shares of the software maker’s stock worth $71,000 after buying an additional 410 shares during the period. Hantz Financial Services Inc. increased its holdings in shares of Progress Software by 194.1% in the fourth quarter. Hantz Financial Services Inc. now owns 747 shares of the software maker’s stock worth $32,000 after buying an additional 493 shares during the period. Wedbush Securities Inc. increased its holdings in shares of Progress Software by 4.4% in the second quarter. Wedbush Securities Inc. now owns 12,884 shares of the software maker’s stock worth $433,000 after buying an additional 545 shares during the period. Finally, Parallel Advisors LLC grew its stake in shares of Progress Software by 142.0% in the first quarter. Parallel Advisors LLC now owns 1,113 shares of the software maker’s stock worth $29,000 after purchasing an additional 653 shares during the last quarter.

Key Stories Impacting Progress Software

Here are the key news stories impacting Progress Software this week:

• Positive Sentiment: Progress reported fiscal Q3 adjusted EPS of $1.69, exceeding analyst estimates by $0.17. GAAP net income rose 17% year over year, operating income increased 6%, and operating cash flow climbed 20% to $88 million. Progress Software Q3 earnings and guidance
• Positive Sentiment: The company raised or reaffirmed its fiscal 2026 adjusted EPS outlook to $6.15-$6.23, broadly in line with the $6.18 FactSet consensus and above some earlier estimates. The outlook incorporates contributions from the Domo AI and Data Platform acquisition. Progress Software fiscal 2026 outlook
• Positive Sentiment: Progress launched new Agentic RAG capabilities designed to connect enterprise data across business systems for AI agents and large language models. The release supports management’s strategy to reposition the company as an AI infrastructure provider. Progress Software Agentic RAG announcement
• Neutral Sentiment: Management highlighted an AI-led shift and the Domo acquisition on its earnings call. Investors are looking for evidence that the transaction can accelerate growth and improve recurring revenue, which rose only 1% year over year on a constant-currency basis. Progress Software earnings call highlights
• Negative Sentiment: Q3 revenue of $246 million came in slightly below the $247.3 million consensus and declined about 1.5%-2% year over year. More importantly, fourth-quarter adjusted EPS guidance of $1.24-$1.33 was below the $1.37 analyst estimate, creating a near-term earnings concern despite projected revenue of $297-$305 million. Progress Software Q4 2026 earnings guidance
• Negative Sentiment: Some investors and analysts remain concerned that AI-related execution and integration risks warrant a lower valuation discount, particularly while core revenue growth remains muted. Progress Software AI risk analysis

Progress Software Company Profile

Progress Software Corporation develops enterprise software that helps organizations build, deploy, integrate, and manage business applications and digital services. Its offerings are designed to support application development, data connectivity, integration, messaging, user experiences, and infrastructure performance across on-premises, cloud, and hybrid environments.

The company’s product portfolio includes OpenEdge for application development and deployment, DataDirect for data connectivity, MOVEit for managed file transfer, WhatsUp Gold for network monitoring, and Sitefinity for digital experience management.