PRA Group Inc. (NASDAQ:PRAA) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued to investors on Thursday.
According to Zacks, “PRA Group remains optimistic about growth given the brimming acquisition pipeline in Europe and renewed supply of non-performing loans in the U.S. It seeks to leverage its access to low cost capital, low operation costs, scale and underwriting ability in each market for growth, as well as generate long term profitability. Its strategic acquisitions and purchase of finance receivables, strong balance sheet and inorganic growth strategies remain the major positives. However, high non-cash charges and steady fall in cash collections in Americas-insolvency business raised caution for the company in recent quarters. Moreover, difficult operations in competitive accounts receivable management industry, and drop in total estimated collections per unit of purchase price ratio, with higher interest expenses remain major headwinds for PRA Group.”
A number of other research analysts have also issued reports on PRAA. First Analysis initiated coverage on shares of PRA Group in a report on Tuesday, June 7th. They issued an “overweight” rating on the stock. William Blair reaffirmed an “outperform” rating on shares of PRA Group in a research note on Tuesday, September 20th. Five analysts have rated the stock with a hold rating and three have issued a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and an average price target of $32.25.
PRA Group (NASDAQ:PRAA) opened at 33.89 on Thursday. PRA Group has a 1-year low of $20.00 and a 1-year high of $56.00. The stock has a 50 day moving average of $30.74 and a 200 day moving average of $28.62. The stock has a market cap of $1.57 billion, a price-to-earnings ratio of 12.61 and a beta of 1.41.
PRA Group (NASDAQ:PRAA) last released its earnings results on Monday, August 8th. The company reported $0.83 earnings per share (EPS) for the quarter, meeting the Zacks’ consensus estimate of $0.83. The company had revenue of $228.50 million for the quarter, compared to analyst estimates of $227.92 million. PRA Group had a net margin of 13.89% and a return on equity of 19.50%. The firm’s quarterly revenue was down 3.7% on a year-over-year basis. During the same period in the prior year, the firm earned $1.06 EPS. Equities analysts expect that PRA Group will post $2.95 earnings per share for the current year.
In related news, insider Michael J. Petit sold 8,300 shares of the stock in a transaction that occurred on Tuesday, August 9th. The shares were sold at an average price of $28.93, for a total transaction of $240,119.00. Following the completion of the sale, the insider now owns 116,857 shares of the company’s stock, valued at approximately $3,380,673.01. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Michael J. Petit sold 3,000 shares of the stock in a transaction that occurred on Friday, July 22nd. The stock was sold at an average price of $28.11, for a total transaction of $84,330.00. Following the sale, the insider now directly owns 125,157 shares of the company’s stock, valued at approximately $3,518,163.27. The disclosure for this sale can be found here. Insiders own 1.70% of the company’s stock.
A number of hedge funds have recently bought and sold shares of PRAA. Advisor Group Inc. acquired a new stake in PRA Group during the second quarter worth about $113,000. PineBridge Investments L.P. increased its stake in PRA Group by 3.7% in the second quarter. PineBridge Investments L.P. now owns 5,876 shares of the company’s stock worth $141,000 after buying an additional 211 shares during the period. Tower Research Capital LLC TRC increased its stake in PRA Group by 401.9% in the second quarter. Tower Research Capital LLC TRC now owns 6,244 shares of the company’s stock worth $151,000 after buying an additional 5,000 shares during the period. Teacher Retirement System of Texas increased its stake in PRA Group by 11.7% in the second quarter. Teacher Retirement System of Texas now owns 6,575 shares of the company’s stock worth $159,000 after buying an additional 688 shares during the period. Finally, IMS Capital Management increased its stake in PRA Group by 4.3% in the second quarter. IMS Capital Management now owns 8,524 shares of the company’s stock worth $206,000 after buying an additional 350 shares during the period.
About PRA Group
PRA Group, Inc (PRA Group), formerly Portfolio Recovery Associates, Inc, is a financial and business services company with operations in the Americas and Europe. The Company is engaged in the acquisition and collection of nonperforming loans in the Americas and Europe. Its business focuses upon the acquisition, collection, and processing of both unpaid and normal-course accounts receivable originally owed to credit grantors, government entities and others.
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