NEW YORK (TheStreet) -- Shares of Progressive Corp. (PGR) are up 0.64% to $26.93 as a higher Gainshare factor suggests a favorable dividend announcement on the horizon, MKM Partners analysts said, maintaining their "buy" rating and $32 price target.
"Progressive's year-to-date Gainshare factor, which is used to determine the company's annual dividend, now stands at 1.31, better than the 1.2 in November 2013," analysts said about the Ohio-based insurance company.
"Last year, the company paid a Gainshare dividend of 49.29 cents and a special dividend of $1 per share. This year, we may see a similar dividend announcement by the time the company reports December results on January 28, 2015," analysts added.
Additionally, Progressive reported November operating income yesterday of 14 cents per share, in line with MKM estimates.
Separately, TheStreet Ratings team rates PROGRESSIVE CORP-OHIO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate PROGRESSIVE CORP-OHIO (PGR) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, notable return on equity, growth in earnings per share and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."