PRA Group (NASDAQ:PRAA) Shares Gap Up Following Better-Than-Expected Earnings

PRA Group, Inc. (NASDAQ:PRAA)’s share price gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $18.15, but opened at $20.33. PRA Group shares last traded at $20.7990, with a volume of 48,410 shares.

The business services provider reported $1.51 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.52 by $0.99. The firm had revenue of $372.17 million for the quarter, compared to analysts’ expectations of $299.99 million. PRA Group had a positive return on equity of 13.19% and a negative net margin of 22.51%.

Analyst Ratings Changes

Several analysts have recently issued reports on PRAA shares. Weiss Ratings restated a “sell (d)” rating on shares of PRA Group in a research report on Wednesday, June 24th. Wall Street Zen downgraded PRA Group from a “strong-buy” rating to a “buy” rating in a research report on Sunday, June 7th. One investment analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, PRA Group presently has an average rating of “Hold” and an average target price of $26.00.

Institutional Trading of PRA Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Los Angeles Capital Management LLC purchased a new position in shares of PRA Group during the fourth quarter valued at approximately $27,000. EverSource Wealth Advisors LLC raised its holdings in shares of PRA Group by 145.6% in the fourth quarter. EverSource Wealth Advisors LLC now owns 2,481 shares of the business services provider’s stock worth $44,000 after buying an additional 1,471 shares during the period. Larson Financial Group LLC raised its holdings in shares of PRA Group by 146.8% in the fourth quarter. Larson Financial Group LLC now owns 2,848 shares of the business services provider’s stock worth $50,000 after buying an additional 1,694 shares during the period. Tower Research Capital LLC TRC lifted its stake in shares of PRA Group by 375.1% during the 2nd quarter. Tower Research Capital LLC TRC now owns 4,784 shares of the business services provider’s stock worth $71,000 after acquiring an additional 3,777 shares during the last quarter. Finally, CWM LLC boosted its holdings in PRA Group by 39.0% during the 4th quarter. CWM LLC now owns 6,420 shares of the business services provider’s stock valued at $114,000 after acquiring an additional 1,802 shares during the period. 97.22% of the stock is owned by hedge funds and other institutional investors.

PRA Group Stock Performance

The stock has a fifty day moving average of $17.00 and a 200-day moving average of $16.58. The company has a market cap of $782.88 million, a PE ratio of -2.87 and a beta of 1.11.

About PRA Group

PRA Group, Inc is a global specialty finance company focused on the acquisition and management of nonperforming loans. Founded in 1996 as Portfolio Recovery Associates, the company purchases defaulted consumer and commercial receivables at discounted rates from financial institutions, utilities and other creditors. By combining rigorous analytics with a consumer-centric ethos, PRA Group seeks to maximize recoveries while maintaining respectful and compliant interactions with debtors.

The company’s core activities include first-party and third-party collections across a range of asset classes such as credit cards, auto loans and utility receivables.