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

Shares of PRA Group, Inc. (NASDAQ:PRAA) gapped up before the market opened on Tuesday following a stronger than expected earnings report. The stock had previously closed at $14.48, but opened at $15.65. PRA Group shares last traded at $16.38, with a volume of 41,654 shares changing hands.

The business services provider reported ($0.31) EPS for the quarter, topping the consensus estimate of ($0.39) by $0.08. The business had revenue of $216.40 million for the quarter, compared to analyst estimates of $205.24 million. PRA Group had a negative net margin of 2.61% and a negative return on equity of 1.76%. The company’s revenue for the quarter was down 11.6% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.63 earnings per share.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on PRAA. StockNews.com began coverage on shares of PRA Group in a research report on Thursday, October 5th. They issued a “hold” rating on the stock. TheStreet lowered shares of PRA Group from a “c-” rating to a “d” rating in a research report on Tuesday, August 1st.

Insider Buying and Selling

In other news, Chairman Steven D. Fredrickson bought 26,000 shares of the firm’s stock in a transaction that occurred on Tuesday, August 29th. The shares were acquired at an average price of $19.31 per share, with a total value of $502,060.00. Following the acquisition, the chairman now owns 139,709 shares of the company’s stock, valued at approximately $2,697,780.79. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 2.00% of the stock is currently owned by insiders.

Hedge Funds Weigh In On PRA Group

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Boston Partners grew its stake in PRA Group by 21.2% in the 1st quarter. Boston Partners now owns 903,121 shares of the business services provider’s stock worth $34,700,000 after buying an additional 158,068 shares in the last quarter. Peregrine Capital Management LLC grew its stake in PRA Group by 24.7% in the 2nd quarter. Peregrine Capital Management LLC now owns 375,877 shares of the business services provider’s stock worth $8,589,000 after buying an additional 74,494 shares in the last quarter. Stephens Investment Management Group LLC grew its stake in PRA Group by 0.8% in the 1st quarter. Stephens Investment Management Group LLC now owns 1,949,621 shares of the business services provider’s stock worth $75,957,000 after buying an additional 15,233 shares in the last quarter. WINTON GROUP Ltd purchased a new position in PRA Group in the 1st quarter worth approximately $550,000. Finally, Louisiana State Employees Retirement System grew its stake in PRA Group by 13.2% in the 2nd quarter. Louisiana State Employees Retirement System now owns 20,600 shares of the business services provider’s stock worth $471,000 after buying an additional 2,400 shares in the last quarter. Hedge funds and other institutional investors own 97.06% of the company’s stock.

PRA Group Stock Performance

The firm has a market cap of $662.76 million, a PE ratio of -30.16 and a beta of 1.28. The stock’s 50 day simple moving average is $17.76 and its 200 day simple moving average is $21.31.

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 in the Americas, Europe, and Australia. 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.