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

PRA Group, Inc. (NASDAQ:PRAA) gapped up prior to trading on Tuesday following a stronger than expected earnings report. 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 analysts’ consensus estimates 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 business had revenue of $255.59 million for the quarter, compared to analyst estimates of $233.37 million. During the same quarter in the prior year, the business posted ($1.50) EPS. PRA Group’s revenue for the quarter was up 64.4% compared to the same quarter last year.

Analyst Upgrades and Downgrades

A number of analysts have commented on PRAA shares. StockNews.com raised PRA Group from a “sell” rating to a “hold” rating in a research report on Friday, February 16th. JMP Securities reaffirmed a “market outperform” rating and issued a $33.00 price objective on shares of PRA Group in a report on Tuesday.

Insider Transactions at PRA Group

In other news, CEO Vikram A. Atal sold 5,830 shares of the firm’s stock in a transaction that occurred on Monday, April 15th. The shares were sold at an average price of $24.39, for a total transaction of $142,193.70. Following the sale, the chief executive officer now owns 155,625 shares of the company’s stock, valued at approximately $3,795,693.75. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 2.00% of the company’s stock.

Institutional Investors Weigh In On PRA Group

Several hedge funds have recently modified their holdings of PRAA. CWM LLC boosted its position in PRA Group by 90.5% during the fourth quarter. CWM LLC now owns 1,189 shares of the business services provider’s stock worth $31,000 after purchasing an additional 565 shares in the last quarter. PNC Financial Services Group Inc. lifted its position in shares of PRA Group by 1,032.9% during the 3rd quarter. PNC Financial Services Group Inc. now owns 3,512 shares of the business services provider’s stock valued at $67,000 after buying an additional 3,202 shares in the last quarter. SG Americas Securities LLC acquired a new stake in PRA Group in the 1st quarter valued at $103,000. Zurcher Kantonalbank Zurich Cantonalbank increased its holdings in PRA Group by 40.5% in the 3rd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 9,447 shares of the business services provider’s stock worth $181,000 after acquiring an additional 2,722 shares in the last quarter. Finally, Jump Financial LLC acquired a new position in PRA Group during the third quarter worth $217,000. 97.22% of the stock is owned by hedge funds and other institutional investors.

PRA Group Price Performance

The firm has a market capitalization of $985.32 million, a PE ratio of -11.76 and a beta of 1.47. The company’s fifty day simple moving average is $24.73 and its 200-day simple moving average is $22.56.

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.