Shares are down 35% this year. Institutional investors take differing bets on the firm
BY RON SHINKMAN
Progyny has grown dramatically in recent years, is comfortably in the black and continues to expand.
For 2025, the company reported net income of $58.5 million on revenue of $1.3 billion. That compares to 2024’s net income of $54.3 million on revenue of $1.2 billion. Net cash flow rose to $210.2 million last year, compared to $179.1 million in 2024. Cycles topped 65,000 last year, up from about 61,100 in 2024, an increase of
But despite the strong news, its stock is in the doldrums, down more than 35% this year and more than 56% since 2024.
What gives?
After 13% revenue loss from Amazon departure, company fixed client concentration issue
There are a few reasons why Progyny shares are depressed. The company lost Amazon as an account at the end of 2024, which represented roughly 13% of its revenue at the time. The loss caused shares to tumble about 40%, from which they have yet to fully recover.
The company’s business model – which relies heavily on providing IVF benefits to those within self-insured employer groups – could also be subject to turbulence, particularly if corporate America decides to pare back on benefits during economic downturns.
During its fourth quarter and full 2025 earnings call, Chief Executive Officer Pete Anevski signaled at the company’s vulnerabilities and the adjustments it has made. There are no longer clients that comprise double-digit percentages of the company’s revenue, he noted, and no specific industry represents more than 15% of Progyny’s revenue.
The company is also expanding its client base to include fully-insured employers, which tend to be smaller (less than 1,000 workers) than large corporate clients. That will expand business opportunities, but would likely provide smaller revenue bumps.
Meanwhile, the publication Inside Wall Street believes Progyny stock is undervalued, and in a recent report suggested the fair value of its shares is nearly $70. CFRA Equity Research also issued a strong buy recommendation for Progyny stock on April 3, noting that its price to earnings and cash flow make it undervalued.
Some Institutional Investors Sold, While Others Bought
Overall, there have been nine analysts making buy ratings for Progyny, and four have recommended holding on to shares without buying any more.
There has been some recent movement toward accumulating shares. Several institutional investors have loaded up on Progyny stock in recent months. They include Wellington Management Group, which purchased 1.6 million shares late last year, increasing its total holding to 2.2 million shares. Citadel Advisors also purchased 1.2 million shares. Allianz Asset Management, Arrowstreet Capital and Loomis and Sayles purchased smaller blocs that nonetheless totaled 2.5 million shares combined.
By contrast Black Rock, the largest single investor in Progyny with 13 million shares, sold 1.9 million shares late last year. JP Morgan Chase, Bank of America and other institutional investors also sold off some of their holdings.
According to the publication Marketwatch, the consensus is a “moderate buy” for the stock. Its target price is $28 a share later this year. That would be a nearly 66% rise compared to its price in early April of about $16.90 a share.