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

PRA Group, Inc. (NASDAQ:PRAA) shares gapped up prior to trading on Tuesday after the company announced better than expected quarterly earnings. 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, topping the consensus estimate of ($0.15) by $0.24. The company had revenue of $255.59 million for the quarter, compared to analysts’ expectations of $233.37 million. PRA Group had a negative return on equity of 6.82% and a negative net margin of 10.40%. PRA Group’s revenue was up 64.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($1.50) earnings per share.

Analyst Ratings Changes

PRAA has been the subject of several recent research reports. StockNews.com upgraded PRA Group from a “hold” rating to a “buy” rating in a report on Wednesday. JMP Securities restated a “market outperform” rating and issued a $33.00 price target on shares of PRA Group in a report on Tuesday.

Insider Activity

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. SG Americas Securities LLC purchased a new position in PRA Group in the third quarter worth $179,000. Bank of New York Mellon Corp grew its stake in PRA Group by 9.6% during the 3rd quarter. Bank of New York Mellon Corp now owns 1,337,568 shares of the business services provider’s stock worth $25,695,000 after buying an additional 116,789 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank increased its position in PRA Group by 40.5% during the 3rd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 9,447 shares of the business services provider’s stock valued at $181,000 after buying an additional 2,722 shares in the last quarter. Assenagon Asset Management S.A. purchased a new stake in PRA Group in the third quarter valued at about $377,000. Finally, Illinois Municipal Retirement Fund acquired a new stake in PRA Group in the third quarter worth about $432,000. Hedge funds and other institutional investors own 97.22% of the company’s stock.

PRA Group Stock Up 1.1 %

The firm has a market cap of $996.00 million, a PE ratio of -11.88 and a beta of 1.47. The stock has a 50 day moving average price of $24.73 and a two-hundred day moving average price of $22.58.

About PRA Group

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.