PRA Group (NASDAQ:PRAA) Stock Falls 3.8% – What’s Next?

PRA Group, Inc. (NASDAQ:PRAA)’s stock price fell 3.8% during trading on Tuesday. The stock traded as low as $19.24 and last traded at $19.2880. Approximately 17,810 shares were traded during trading, a decline of 97% from the average session volume of 521,226 shares. The stock had previously closed at $20.05.

Key Stories Impacting PRA Group

Here are the key news stories impacting PRA Group this week:

• Positive Sentiment: PRA Group priced a private offering of $400 million of 8.500% senior notes due 2033. The proceeds are expected to repay borrowings under its revolving credit facility, extending maturities, improving liquidity and reducing near-term refinancing risk. PRA Group Announces Pricing of Offering of $400.0 Million of 8.500% Senior Notes due 2033
• Positive Sentiment: An investment analysis rated PRAA a “Buy,” citing resilient credit recoveries—particularly in Europe—disciplined purchasing of nonperforming loans, improving loan pricing and strong labor markets that support collections. The company’s leverage was reported at approximately 2.7x, while the stock remains at a substantial discount to book value. PRA Group: Outsized Discount To Book Value Given Resilient Recoveries
• Neutral Sentiment: The debt offering carries a relatively high 8.500% coupon, which provides funding certainty but could keep interest expense elevated. Its ultimate benefit will depend on how effectively PRA Group deploys capital and improves recoveries.
• Neutral Sentiment: Some sell-side brokerages recently initiated or maintained a “Hold” rating on PRAA, presenting a more cautious view than the bullish valuation analysis. PRA Group Stock Now Rated Hold by Sell-Side Brokerages

Wall Street Analyst Weigh In

Several analysts recently issued reports on the company. Wall Street Zen upgraded PRA Group from a “buy” rating to a “strong-buy” rating in a report on Saturday, September 26th. Zacks Research raised PRA Group from a “hold” rating to a “strong-buy” rating in a research report on Monday, August 10th. Finally, Weiss Ratings reissued a “sell (d)” rating on shares of PRA Group in a report on Monday, September 21st. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $26.00.

PRA Group Price Performance

The business has a 50-day simple moving average of $19.11 and a two-hundred day simple moving average of $18.15. The stock has a market cap of $733.80 million, a price-to-earnings ratio of -2.90 and a beta of 1.11.

PRA Group (NASDAQ:PRAA) last posted its quarterly earnings results on Thursday, August 6th. The business services provider reported $1.51 earnings per share for the quarter, beating analysts’ consensus estimates of $0.52 by $0.99. PRA Group had a positive return on equity of 15.56% and a negative net margin of 19.91%.The business had revenue of $372.17 million for the quarter, compared to analysts’ expectations of $299.99 million. As a group, equities analysts anticipate that PRA Group, Inc. will post 3.93 earnings per share for the current fiscal year.

Institutional Trading of PRA Group

Hedge funds and other institutional investors have recently modified their holdings of the stock. EverSource Wealth Advisors LLC raised its holdings in PRA Group by 49.6% in the 1st quarter. EverSource Wealth Advisors LLC now owns 3,711 shares of the business services provider’s stock valued at $65,000 after acquiring an additional 1,230 shares during the period. Meeder Asset Management Inc. acquired a new position in shares of PRA Group in the second quarter valued at approximately $49,000. Inspire Investing LLC increased its stake in shares of PRA Group by 11.1% during the first quarter. Inspire Investing LLC now owns 29,446 shares of the business services provider’s stock worth $515,000 after purchasing an additional 2,941 shares during the period. SG Americas Securities LLC increased its stake in shares of PRA Group by 27.1% during the first quarter. SG Americas Securities LLC now owns 15,318 shares of the business services provider’s stock worth $268,000 after purchasing an additional 3,267 shares during the period. Finally, Counterpoint Mutual Funds LLC lifted its holdings in PRA Group by 12.0% during the 1st quarter. Counterpoint Mutual Funds LLC now owns 32,416 shares of the business services provider’s stock worth $567,000 after purchasing an additional 3,479 shares during the last quarter. Institutional investors own 97.22% of the company’s stock.

About PRA Group

PRA Group, Inc is a global financial services company that purchases portfolios of accounts receivable from banks, credit unions, consumer finance companies and other creditors. These portfolios generally consist of nonperforming or distressed consumer accounts, including unpaid credit card balances, personal loans and other forms of unsecured debt.

After acquiring receivables, PRA Group works directly with consumers to establish repayment arrangements and resolve outstanding obligations.