Progress Stock Story


USD 46.95  0.28  0.59%   

Today we will sum up Progress Software. Why are we still confident in our hopes for a recovery. Progress Software is at this time traded for 50.83. The entity has historical hype elasticity of -0.12. The average price elasticity to hype of competition is about 2.41. The firm is forecasted to decline in value after the next headline, with the price expected to drop to 50.71. The average volatility of media hype impact on the company stock price is huge, making predictions on the news or social media along less reliable. The price decrease on the next news is expected to be -0.24%, whereas the daily expected return is at this time at 0.18 percent. The volatility of related hype on Progress Software is about 16.79% with expected price after next announcement by competition of 53.24 Given the investment horizon of 90 days the next forecasted press release will be in about 11 days.
Published over a month ago
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Will Progress Software (NASDAQ:PRGS) continue to spike?

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Progress Software has an asset utilization ratio of 73.52 percent. This connotes that the company is making $0.74 for each dollar of assets. An increasing asset utilization means that Progress Software is more efficient with each dollar of assets it utilizes for everyday operations.
The company has Profit Margin (PM) of 14.4 %, which can signify that it executes well on its competitive strategies and has good control over its expenditures. This is very large. Similarly, it shows Operating Margin (OM) of 33.92 %, which suggests for every 100 dollars of sales, it generated a net operating income of 0.34.
The successful prediction of Progress Software stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Progress Software, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Progress Software based on Progress Software hews, social hype, general headline patterns, and widely used predictive technical indicators.
We also calculate exposure to Progress Software's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Progress Software's related companies.

Use Technical Analysis to project Progress expected Price

Progress Software technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Progress Software technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Progress Software trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

How does Progress utilize its cash?

To perform a cash flow analysis of Progress Software, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Progress Software is receiving and how much cash it distributes out in a given period. The Progress Software cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Progress Software Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. Progress Software reported last year Net Cash Flow from Operations of 160.68 Million

What is driving Progress Software Investor Appetite?

The modest gains experienced by current holders of Progress Software may encourage retail investors to take a closer look at the company as it is trading at a share price of 50.83 on 298,457 in trading volume. The company executives have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in May. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.25. The current volatility is consistent with the ongoing market swings in May 2022 as well as with Progress Software unsystematic, company-specific events.
 2015 2021 2022 (projected)
Interest Expense4.18 M3.76 M3.66 M
Gross Profit339.63 M305.67 M293.04 M

Deferred Revenue Breakdown

Progress Software Deferred Revenue yearly trend continues to be relatively stable with very little volatility. Deferred Revenue is likely to drop to about 114.1 M. Deferred Revenue usually refers to a component of Total Liabilities representing the carrying amount of consideration received or receivable on potential earnings that were not recognized as revenue; including sales; license fees; and royalties; but excluding interest income. Progress Software Deferred Revenue is relatively stable at the moment as compared to the past year. Progress Software reported last year Deferred Revenue of 123.98 Million
201064.46 Million
2011106.74 Million
201297.54 Million
201396.24 Million
2014134.07 Million
2015137.76 Million
2021123.98 Million
2022114.08 Million

How will Progress retail investors react to the next fall?

Latest total risk alpha is at 0.44. Progress Software currently demonstrates below-average downside deviation. It has Information Ratio of 0.16 and Jensen Alpha of 0.38. However, we advise investors to further question Progress Software expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Progress Software's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Progress Software's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Progress Software Implied Volatility

Progress Software's implied volatility exposes the market's sentiment of Progress Software stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Progress Software's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Progress Software stock will not fluctuate a lot when Progress Software's options are near their expiration.

Our Final Perspective on Progress Software

While some firms under the software—application industry are still a bit expensive, Progress Software may offer a potential longer-term growth to retail investors. To summarize, as of the 27th of June 2022, we believe that at this point, Progress Software is very steady with below average probability of financial unrest within the next 2 years. From a slightly different point of view, the entity appears to be undervalued. Our latest 90 days buy-or-sell advice on the enterprise is Strong Buy.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Progress Software. Please refer to our Terms of Use for any information regarding our disclosure principles.

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