Americans are driving again, and that's bad news for Progressive's stock, Morgan Stanley says

Heavy outgoing traffic moves toward the Chesapeake Bay Bridge on the eve of Memorial Day long weekend May 28, 2021 in Annapolis, Maryland.
Alex Wong | Getty Images

The return of car travel in the United States has created significant downside for insurance stocks like Progressive, according to Morgan Stanley.

Analyst Michael Phillips downgraded the stock to underweight from equal weight, saying in a note to clients Monday that weaker-than-expected margins in Progressive's April results were not a temporary blip. The stock has traded sideways in the two weeks since that report was released.

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