PRA Group (NASDAQ:PRAA) Shares Gap Up Following Earnings Beat

PRA Group, Inc. (NASDAQ:PRAA) shares gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $25.33, but opened at $28.00. PRA Group shares last traded at $25.67, with a volume of 48,674 shares trading hands.

The business services provider reported $0.09 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.15) by $0.24. PRA Group had a negative net margin of 10.40% and a negative return on equity of 6.82%. The company had revenue of $255.59 million for the quarter, compared to analysts’ expectations of $233.37 million. During the same quarter in the previous year, the company earned ($1.50) earnings per share. PRA Group’s quarterly revenue was up 64.4% on a year-over-year basis.

Analysts Set New Price Targets

A number of research firms have recently commented on PRAA. JMP Securities restated a “market outperform” rating and issued a $33.00 target price on shares of PRA Group in a research note on Tuesday. StockNews.com raised PRA Group from a “hold” rating to a “buy” rating in a research report on Wednesday.

Insider Activity

In related news, CEO Vikram A. Atal sold 5,830 shares of the firm’s stock in a transaction that occurred on Monday, April 15th. The stock was sold at an average price of $24.39, for a total transaction of $142,193.70. Following the completion of the transaction, the chief executive officer now owns 155,625 shares of the company’s stock, valued at approximately $3,795,693.75. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Company insiders own 2.00% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Wilbanks Smith & Thomas Asset Management LLC raised its holdings in PRA Group by 192.2% in the 4th quarter. Wilbanks Smith & Thomas Asset Management LLC now owns 293,583 shares of the business services provider’s stock worth $7,692,000 after acquiring an additional 193,117 shares during the last quarter. Illinois Municipal Retirement Fund bought a new position in shares of PRA Group during the third quarter valued at $432,000. UBS Group AG boosted its position in shares of PRA Group by 3,462.8% during the third quarter. UBS Group AG now owns 963,521 shares of the business services provider’s stock valued at $18,509,000 after buying an additional 936,477 shares during the last quarter. Jacobs Levy Equity Management Inc. boosted its position in shares of PRA Group by 42.3% during the third quarter. Jacobs Levy Equity Management Inc. now owns 450,193 shares of the business services provider’s stock valued at $8,648,000 after buying an additional 133,774 shares during the last quarter. Finally, Dark Forest Capital Management LP bought a new stake in PRA Group in the 3rd quarter worth about $1,263,000. Institutional investors own 97.22% of the company’s stock.

PRA Group Stock Performance

The stock has a 50-day simple moving average of $24.73 and a two-hundred day simple moving average of $22.58. The firm has a market cap of $996.00 million, a PE ratio of -11.88 and a beta of 1.47.

PRA Group Company Profile

PRA Group, Inc, a financial and business services company, engages in the purchase, collection, and management of portfolios of nonperforming loans worldwide. It is involved in the purchase of accounts that are primarily the unpaid obligations of individuals owed to credit originators, which include banks and other types of consumer, retail, and auto finance companies.