PRA Group (NASDAQ:PRAA) Hits New 12-Month Low Following Weak Earnings

Posted by Defense World Staff on May 10th, 2023

PRA Group, Inc. (NASDAQ:PRAA – Get Rating)’s stock price hit a new 52-week low during trading on Tuesday following a weaker than expected earnings announcement. The stock traded as low as $23.66 and last traded at $23.69, with a volume of 181543 shares. The stock had previously closed at $34.39.

The business services provider reported ($1.50) earnings per share for the quarter, missing the consensus estimate of $0.45 by ($1.95). The company had revenue of $155.50 million for the quarter, compared to the consensus estimate of $223.52 million. PRA Group had a net margin of 12.12% and a return on equity of 9.26%. The business’s revenue for the quarter was down 35.4% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.97 EPS.

Analyst Upgrades and Downgrades

Several equities analysts have commented on PRAA shares. JMP Securities cut their price objective on PRA Group from $50.00 to $42.00 in a research report on Tuesday. TheStreet downgraded PRA Group from a “b-” rating to a “c+” rating in a research report on Tuesday, May 2nd. StockNews.com began coverage on PRA Group in a research report on Thursday, March 16th. They issued a “hold” rating on the stock. Finally, Truist Financial dropped their price target on PRA Group from $50.00 to $42.00 in a research report on Tuesday.

Insider Transactions at PRA Group

In related news, Chairman Steven D. Fredrickson sold 10,000 shares of the company’s stock in a transaction on Tuesday, February 28th. The stock was sold at an average price of $42.52, for a total transaction of $425,200.00. Following the completion of the sale, the chairman now directly owns 103,920 shares in the company, valued at approximately $4,418,678.40. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 2.00% of the company’s stock.

Institutional Investors Weigh In On PRA Group

A number of hedge funds have recently made changes to their positions in PRAA. Group One Trading L.P. raised its stake in PRA Group by 106.7% in the first quarter. Group One Trading L.P. now owns 700 shares of the business services provider’s stock valued at $32,000 after buying an additional 11,133 shares during the last quarter. MetLife Investment Management LLC raised its stake in PRA Group by 56.0% in the first quarter. MetLife Investment Management LLC now owns 22,934 shares of the business services provider’s stock valued at $1,034,000 after buying an additional 8,236 shares during the last quarter. Rhumbline Advisers raised its stake in PRA Group by 0.8% in the first quarter. Rhumbline Advisers now owns 124,510 shares of the business services provider’s stock valued at $5,613,000 after buying an additional 977 shares during the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS raised its stake in PRA Group by 14.1% in the first quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 37,599 shares of the business services provider’s stock valued at $1,695,000 after buying an additional 4,636 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its stake in PRA Group by 1.6% in the first quarter. Dimensional Fund Advisors LP now owns 1,890,693 shares of the business services provider’s stock valued at $85,233,000 after buying an additional 30,304 shares during the last quarter.

PRA Group Price Performance

The business has a fifty day moving average price of $38.35 and a two-hundred day moving average price of $36.61. The firm has a market capitalization of $938.12 million, a price-to-earnings ratio of 8.20 and a beta of 1.16.

PRA Group Company Profile

(Get Rating)

PRA Group, Inc engages in the purchase, collection and management of portfolios of nonperforming loans. The firm purchase portfolios of nonperforming loans at a discount in two broad categories: Core and Insolvency. It also provides fee-based services on class action claims recoveries and by servicing consumer bankruptcy accounts in the United States.