Why The Progressive Corp. (PGR) Went Down On Thursday?

We recently published a list of Pulse of the Market: Wednesday’s 10 Worst Performers. In this article, we are going to take a look at where The Progressive Corp. (NYSE:PGR) stands against other Wednesday’s worst performers.

Shares on Wall Street bounced back from a bloodbath, with all main indices ending in the green on Wednesday, as investors cheered the Federal Reserve’s decision to keep interest rates unchanged.

The tech-heavy Nasdaq led the gains, rallying 1.41 percent, followed by the S&P 500 with a 1.08 percent gain, and the Dow Jones, by 0.92 percent.

Meanwhile, 10 companies defied overall market optimism, booking losses during the trading session. In this article, let’s take a look at the 10 worst-performing stocks and explore the reasons behind their drop.

To come up with the list, we considered only the companies with a $2-billion market capitalization and $5 million in trading volume.

A team of accountants in a boardroom, discussing strategic moves of an insurance company.

The Progressive Corp. (NYSE:PGR)

Progressive Corp. declined for a second straight day on Wednesday, shedding 3.53 percent to end at $273.29 each after an investment firm downgraded its rating for the company.

On Wednesday, Bank of America lowered its price target for the company to $300 from $318 previously, albeit maintaining its “buy” rating on the firm.

Meanwhile, PGR earned a better outlook from Keefe, Bruyette & Woods, with a new price target of $300, higher than the $294 previously. It also assigned an “outperform” rating for the company.

The new price target is based on a multiple of 20.8 times the firm’s projected 2026 EPS for the company.

PGR is an American insurance company, which offers various financial services and insurance products on vehicles, property, personal, and businesses.

Overall, PGR ranks 6th on our list of Wednesday’s worst performers. While we acknowledge the potential of PGR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as PGR but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.