Why Progressive Stock Wilted on Wednesday

Core Viewpoint - Progressive's stock experienced a sell-off following a price target cut by an analyst, closing nearly 4% down, contrasting with the S&P 500's 1.1% rise [1] Group 1: Analyst Insights - Joshua Shanker of Bank of America Securities reduced Progressive's price target from $318 to$300 per share while maintaining a buy recommendation [2] - This is not the first price target reduction by Shanker, as he previously lowered it from $333 to$318 [2] Group 2: Company Performance - Progressive reported a 17% year-over-year increase in net premiums written, totaling $6.68 billion [3] - The combined ratio, a key performance metric for insurers, improved by 4.2 percentage points to 82.6%, indicating better operational efficiency [3][4] - A lower combined ratio is favorable in the insurance industry, suggesting Progressive's performance is strong despite the recent stock decline [4]