Prentiss Smith & Company Loads Up on Progressive (NYSE: PGR) Shares on the Dip: Is the Stock a Buy?
Key Points
Prentiss Smith added 17,537 shares in Progressive; estimated trade value of approximately $4.32 million, based on the average price for the third quarter of 2025.
The transaction represents 2.44% of Prentiss Smith's 13F reportable assets under management.
Post-trade stake: 23,094 shares valued at $5.70 million as of September 30, 2025.
The Progressive position now accounts for 3.22% of fund AUM, which places it outside the fund's top five holdings.
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Prentiss Smith & Company increased its holding in Progressive (NYSE:PGR) by 17,537 shares during the third quarter of 2025, an estimated $4.32 million trade.
What happened
Prentiss Smith disclosed a purchase of 17,537 shares of Progressive in its Form 13-F for the period ended September 30, 2025, filed with the Securities and Exchange Commission on October 20, 2025.
The estimated trade size was approximately $4,323,238 for 17,537 shares.
The fund now holds 23,094 shares, worth $5.70 million.
What else to know
This was a buy; Progressive makes up 3.22% of Prentiss Smith's reportable equity holdings after the trade.
The firm's top five holdings after the filing:
- Alphabet: $10.3 million (5.8% of AUM) as of September 30, 2025
- Microsoft: $9.94 million (5.6% of AUM) as of September 30, 2025
- Cisco Systems: $9.61 million (5.4% of AUM) as of September 30, 2025
- Gorman-Rupp: $7.92 million (4.5% of AUM) as of September 30, 2025
- Johnson & Johnson: $7.84 million (4.4% of AUM) as of September 30, 2025
As of October 17, 2025, shares of Progressive were priced at $225.61, down 10.24% over the year ending October 20, 2025.
The stock underperformed the S&P 500 by 24 percentage points over the one-year period ending October 20, 2025.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $85.17 billion |
| Net Income (TTM) | $10.71 billion |
| Dividend Yield | 2.23% |
| Price (as of market close October 17, 2025) | $225.61 |
Company Snapshot
Progressive:
- Offers personal and commercial auto insurance, residential and commercial property insurance, general liability, and specialty insurance products across the United States.
- Generates revenue primarily by underwriting insurance policies and collecting premiums.
- Serves individuals, small businesses, and property owners through direct channels and independent insurance agencies.
With a diversified portfolio spanning auto, property, and specialty lines, Progressive's scale and multi-channel distribution enable broad market reach and risk diversification.
Foolish take
In just the last decade, Progressive's stock has risen more than sixfold. However, in the last six months, its share price has dropped 24% from its high -- and Prentiss Smith was ready to "buy the dip."
Prentiss Smith had previously devoted about a 0.5% portfolio to allocation over the last two years, but upped this to a hefty 3.2% in the previous quarter. This purchase made Progressive the firm's 10th-largest holding.
Despite the fact that Progressive is now a $130 billion powerhouse operating across the auto, commercial, and property insurance industries, the company remains something of a growth stock.
The company has grown sales by 14% or higher in each of the last 10 quarters, helping to quadruple its revenue compared to a decade ago.
Even with this immense growth, Progressive's combined ratio remains best-in-class at 86%, versus an industry average somewhere around 97% to 100%.
This top-tier profitability makes the insurer a powerful compounding machine, which has helped provide investors with multibagger returns over the years.
Progressive's double-digit sales growth, persistent profitability, and track record of weathering numerous macroeconomic environments make it a great investment following its recent sell-off.
Glossary
13F reportable assets: Assets that investment managers must disclose in quarterly SEC filings if they exceed a certain threshold.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Form 13-F: A quarterly SEC filing by institutional investment managers disclosing their equity holdings.
Stake: The amount or percentage of ownership an investor or fund holds in a particular company.
Dividend yield: Annual dividends per share divided by the share price, expressed as a percentage.
Underwriting: The process by which an insurer evaluates and assumes risk in exchange for premiums.
Premiums: Payments made by policyholders to insurance companies for coverage under an insurance policy.
Multi-channel distribution: Selling products or services through multiple methods, such as direct sales and independent agents.
Risk diversification: Spreading investments or exposures across different assets or sectors to reduce overall risk.
TTM: The 12-month period ending with the most recent quarterly report.
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Josh Kohn-Lindquist has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Cisco Systems, Microsoft, and Progressive. The Motley Fool recommends Johnson & Johnson and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
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