Breach Inlet Capital Management, a Charleston, S.C.-based investment firm, published a presentation arguing that shares of PROG Holdings, Inc. (NYSE: PRG) are materially undervalued, according to a press release from the firm.

Breach Inlet Capital disclosed ownership of approximately 2.7% to 3.0% of PRG's shares outstanding, describing itself as a top 10 shareholder of the company. The firm suggested that PRG could spin off what it described as a high-growth business as a potential step toward correcting what it views as a mispricing of the stock.

The firm was founded in 2016 by Chris Colvin and focuses on small-cap companies it considers to be undergoing transformation.