Americans are driving again, and that’s bad news for Progressive stocks, Morgan Stanley says
Heavy outgoing traffic heads towards the Chesapeake Bay Bridge on the eve of Memorial Day long weekend, May 28, 2021 in Annapolis, Maryland.
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The return of road trips to the United States led to a significant decline in insurance stocks as Progressive, according to Morgan Stanley.
Analyst Michael Phillips downgraded the stock to an underweight to equal weight, saying in a note to clients on Monday that the weaker-than-expected margins in Progressive’s April earnings were not an incident temporary. The stock traded sideways in the two weeks following the release of this report.