Progress Software (NASDAQ:PRGS) Shares Down 6.3% – Time to Sell?

Progress Software Corporation (NASDAQ:PRGS) traded down 6.3% on Thursday. The company traded as low as $37.87 and last traded at $37.4610. Approximately 256,000 shares changed hands during trading, a decline of 70% from the average daily volume of 840,973 shares. The stock had previously closed at $39.97.

Key Headlines Impacting Progress Software

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

• Positive Sentiment: Progress reported fiscal third-quarter adjusted EPS of $1.69, above the $1.49 consensus estimate, while GAAP operating income increased 6% year over year and operating cash flow rose 20% to $88 million. Progress Software Beats Q3 Earnings Estimates
• Positive Sentiment: The company raised its fiscal 2026 adjusted EPS outlook to $6.15-$6.23, broadly in line with the $6.18 analyst estimate, following the completion of its acquisition of Domo’s AI and Data Platform business. Progress Software Lifts Outlook After Domo AI Acquisition
• Positive Sentiment: Progress introduced expanded Agentic RAG capabilities designed to connect enterprise data across business systems and support AI agents without requiring customers to rebuild existing deployments, reinforcing its AI growth strategy. Progress Software Announces New Agentic RAG Capabilities
• Neutral Sentiment: Fiscal third-quarter revenue was approximately $246 million, essentially matching estimates but declining about 1.5%-2% year over year. Annualized recurring revenue rose only 1% on a constant-currency basis, suggesting limited underlying growth momentum. Progress Software Fiscal Third Quarter 2026 Results
• Negative Sentiment: Fourth-quarter adjusted EPS guidance of $1.24-$1.33 was below the $1.37 consensus estimate. The cautious profit outlook, together with integration and execution risks from the Domo acquisition, appears to be outweighing the quarterly earnings beat.

Wall Street Analysts Forecast Growth

PRGS has been the subject of a number of recent analyst reports. Jefferies Financial Group raised Progress Software to a “hold” rating in a research report on Friday, September 25th. Weiss Ratings upgraded Progress Software from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Tuesday, August 11th. Guggenheim reaffirmed a “buy” rating and set a $83.00 price target on shares of Progress Software in a report on Wednesday, July 1st. DA Davidson lifted their price objective on shares of Progress Software from $45.00 to $55.00 and gave the stock a “buy” rating in a research report on Wednesday, August 12th. Finally, Oppenheimer decreased their price objective on shares of Progress Software from $57.00 to $50.00 and set an “outperform” rating on the stock in a report on Wednesday, July 1st. Five research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, Progress Software currently has an average rating of “Moderate Buy” and an average price target of $52.17.

Progress Software Trading Down 4.4%

The company has a market capitalization of $1.57 billion, a price-to-earnings ratio of 18.59, a price-to-earnings-growth ratio of 1.66 and a beta of 0.82. The company has a debt-to-equity ratio of 2.55, a quick ratio of 0.81 and a current ratio of 0.81. The firm has a fifty day moving average price of $42.10 and a 200-day moving average price of $35.08.

Progress Software (NASDAQ:PRGS) last posted its quarterly earnings results on Tuesday, June 30th. The software maker reported $1.62 EPS for the quarter, beating analysts’ consensus estimates of $1.46 by $0.16. Progress Software had a return on equity of 43.07% and a net margin of 8.87%.The business had revenue of $253.47 million during the quarter, compared to the consensus estimate of $242.74 million. During the same quarter in the previous year, the firm earned $1.40 earnings per share. Progress Software’s revenue for the quarter was up 6.8% compared to the same quarter last year. As a group, equities analysts anticipate that Progress Software Corporation will post 4.77 EPS for the current year.

Hedge Funds Weigh In On Progress Software

Hedge funds and other institutional investors have recently made changes to their positions in the company. QRG Capital Management Inc. boosted its position in shares of Progress Software by 27.7% during the 2nd quarter. QRG Capital Management Inc. now owns 12,598 shares of the software maker’s stock worth $423,000 after acquiring an additional 2,732 shares in the last quarter. Tidal Investments LLC increased its stake in Progress Software by 203.3% in the second quarter. Tidal Investments LLC now owns 24,802 shares of the software maker’s stock valued at $833,000 after acquiring an additional 16,625 shares during the last quarter. Engineers Gate Manager LP raised its position in Progress Software by 321.6% during the second quarter. Engineers Gate Manager LP now owns 54,940 shares of the software maker’s stock valued at $1,845,000 after purchasing an additional 41,910 shares in the last quarter. Integrated Wealth Concepts LLC acquired a new position in Progress Software during the second quarter valued at approximately $61,000. Finally, Allworth Financial LP lifted its stake in Progress Software by 647.2% during the second quarter. Allworth Financial LP now owns 2,406 shares of the software maker’s stock worth $81,000 after purchasing an additional 2,084 shares during the last quarter.

Progress Software Company Profile

Progress Software Corporation (NASDAQ: PRGS) develops enterprise software designed to help organizations build, deploy, manage and secure business applications and digital services. Its portfolio supports application development, data connectivity, integration, file transfer, application performance monitoring and network management across cloud, hybrid and on-premises environments.

The company’s products and brands include OpenEdge for developing and deploying business applications; DataDirect for data connectivity; MOVEit for managed file transfer; WhatsUp Gold and Flowmon for network monitoring and visibility; Chef for infrastructure and application automation; Sitefinity for digital experience management; and Telerik and Kendo UI for user interface and development tools.