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

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 $12.67, but opened at $15.28. PRA Group shares last traded at $15.0530, with a volume of 817,680 shares trading hands.

The business services provider reported $1.46 EPS for the quarter, beating the consensus estimate of $0.50 by $0.96. PRA Group had a negative net margin of 29.55% and a positive return on equity of 7.03%. The firm had revenue of $333.39 million during the quarter, compared to analyst estimates of $288.86 million.

Analyst Ratings Changes

A number of equities analysts recently weighed in on the stock. Truist Financial cut their price target on shares of PRA Group from $33.00 to $26.00 and set a “buy” rating on the stock in a report on Tuesday, November 4th. Citigroup cut shares of PRA Group from an “outperform” rating to a “market perform” rating in a research note on Wednesday, January 28th. Zacks Research lowered shares of PRA Group from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 5th. Citizens Jmp cut shares of PRA Group from a “market outperform” rating to a “market perform” rating in a report on Wednesday, January 28th. Finally, Weiss Ratings reissued a “sell (d)” rating on shares of PRA Group in a report on Monday, December 29th. One equities research analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, PRA Group presently has a consensus rating of “Hold” and a consensus price target of $25.00.

Hedge Funds Weigh In On PRA Group

Several hedge funds have recently made changes to their positions in the stock. Los Angeles Capital Management LLC bought a new stake in shares of PRA Group during the 4th quarter valued at $27,000. GAMMA Investing LLC lifted its holdings in shares of PRA Group by 301.0% in the third quarter. GAMMA Investing LLC now owns 1,684 shares of the business services provider’s stock worth $26,000 after buying an additional 1,264 shares in the last quarter. EverSource Wealth Advisors LLC boosted its position 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 valued at $44,000 after acquiring an additional 1,471 shares during the period. Larson Financial Group LLC grew its stake in PRA Group by 146.8% during the fourth quarter. Larson Financial Group LLC now owns 2,848 shares of the business services provider’s stock valued at $50,000 after acquiring an additional 1,694 shares in the last quarter. Finally, CWM LLC increased its holdings in PRA Group by 140.0% during the 3rd quarter. CWM LLC now owns 4,618 shares of the business services provider’s stock worth $71,000 after acquiring an additional 2,694 shares during the period. 97.22% of the stock is currently owned by hedge funds and other institutional investors.

PRA Group Stock Performance

The company’s 50 day simple moving average is $14.58 and its 200-day simple moving average is $15.40. The firm has a market capitalization of $607.42 million, a PE ratio of -1.77 and a beta of 1.29.

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.