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

Shares of PRA Group, Inc. (NASDAQ:PRAA) gapped up prior to trading on Friday following a better than expected earnings announcement. 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 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.50 by $0.96. The firm had revenue of $333.39 million during the quarter, compared to the consensus estimate of $288.86 million. PRA Group had a negative net margin of 25.39% and a positive return on equity of 10.11%.

PRA Group News Roundup

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

• Positive Sentiment: Q4 results materially beat estimates — EPS $1.46 vs. consensus ~$0.50 and revenue $333.4M vs. ~$288.9M; cash collections rose ~13.6% and portfolio income improved, giving near‑term earnings and cashflow credibility. PRA Group Q4 Earnings Beat Estimates on Strong Portfolio Income
• Positive Sentiment: Management highlighted record cash collections and a strategic push on IT (automation/analytics) and selective buying that could boost margin and future collections conversion if execution holds. PRA Group Inc (PRAA) Q4 2025 Earnings Call Highlights
• Neutral Sentiment: Analyst commentary views the quarter as a constructive step but emphasizes this is an early stage of recovery; slide deck and call materials provide more detail for modeling assumptions. MarketBeat Q4 materials and call
• Negative Sentiment: PRAA still lags peer Encore Capital on portfolio yields and collections efficiency — analysts warn sustained stock upside requires improved acquisition execution, better collections yields and margin recovery. PRA Group: A Better Quarter Is Welcome, But A Lot Of Work Remains
• Negative Sentiment: Short interest jumped ~61.6% in February (to ~1.27M shares, ~3.3% of float), a potential source of selling pressure or volatility if execution doubts persist. (Short-interest data reflected mid‑Feb positions.)

Wall Street Analyst Weigh In

Several brokerages have issued reports on PRAA. Zacks Research downgraded PRA Group from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 5th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of PRA Group in a report on Monday, December 29th. Citigroup lowered shares of PRA Group from an “outperform” rating to a “market perform” rating in a report on Wednesday, January 28th. Citizens Jmp cut shares of PRA Group from a “market outperform” rating to a “market perform” rating in a research report on Wednesday, January 28th. Finally, Truist Financial reduced their target price on shares of PRA Group from $33.00 to $26.00 and set a “buy” rating on the stock in a research report on Tuesday, November 4th. One equities research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Hold” and an average target price of $25.00.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in PRAA. The Manufacturers Life Insurance Company grew its position in shares of PRA Group by 5.6% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 14,523 shares of the business services provider’s stock worth $214,000 after buying an additional 768 shares during the period. Arizona State Retirement System boosted its stake in PRA Group by 7.1% in the third quarter. Arizona State Retirement System now owns 11,728 shares of the business services provider’s stock valued at $181,000 after acquiring an additional 781 shares during the last quarter. Focus Partners Wealth boosted its stake in PRA Group by 1.0% in the fourth quarter. Focus Partners Wealth now owns 94,900 shares of the business services provider’s stock valued at $1,679,000 after acquiring an additional 927 shares during the last quarter. SG Americas Securities LLC grew its holdings in PRA Group by 8.8% during the 4th quarter. SG Americas Securities LLC now owns 12,051 shares of the business services provider’s stock worth $213,000 after acquiring an additional 974 shares during the period. Finally, Mariner LLC raised its position in shares of PRA Group by 3.2% during the 3rd quarter. Mariner LLC now owns 31,045 shares of the business services provider’s stock valued at $479,000 after acquiring an additional 975 shares during the last quarter. 97.22% of the stock is currently owned by institutional investors and hedge funds.

PRA Group Stock Performance

The firm’s 50-day simple moving average is $14.56 and its 200 day simple moving average is $15.40. The company has a market cap of $614.41 million, a P/E ratio of -2.02 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.