PROG Holdings, Inc. (PRG) stock plummeted 5.01% during the trading session on Wednesday, underperforming the broader market. The decline can be attributed to a couple of key factors:

Firstly, Jefferies downgraded PROG Holdings from "Buy" to "Hold" and slashed its price target from $58 to $29. The brokerage firm cited growing evidence of a delayed industry recovery, PROG Holdings' exposure to challenged retail segments, and mixed credit trends as reasons for the downgrade.

Secondly, PROG Holdings' recent forecast of annual adjusted earnings per share and revenue falling short of Wall Street expectations, along with higher delinquencies and growth headwinds, has raised concerns about the company's near-term performance. Jefferies noted that it was anticipating signals of lower-income Americans accelerating discretionary spending, but this has yet to materialize.