PRA Group (NASDAQ:PRAA) Shares Gap Up Following Better-Than-Expected Earnings

PRA Group, Inc. (NASDAQ:PRAA)’s stock price gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $18.15, but opened at $20.33. PRA Group shares last traded at $20.7990, with a volume of 48,410 shares changing hands.

The business services provider reported $1.51 EPS for the quarter, topping analysts’ consensus estimates of $0.52 by $0.99. The firm had revenue of $372.17 million for the quarter, compared to analysts’ expectations of $299.99 million. PRA Group had a negative net margin of 22.51% and a positive return on equity of 13.19%.

Analysts Set New Price Targets

Several equities research analysts have issued reports on PRAA shares. Weiss Ratings reissued a “sell (d)” rating on shares of PRA Group in a research report on Wednesday, June 24th. Wall Street Zen lowered shares of PRA Group from a “strong-buy” rating to a “buy” rating in a research report on Sunday, June 7th. One analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $26.00.

Hedge Funds Weigh In On PRA Group

Several institutional investors and hedge funds have recently added to or reduced their stakes in PRAA. Topline Capital Management LLC grew its holdings in PRA Group by 168.3% in the second quarter. Topline Capital Management LLC now owns 2,250,629 shares of the business services provider’s stock worth $33,197,000 after purchasing an additional 1,411,707 shares during the last quarter. Assenagon Asset Management S.A. lifted its holdings in shares of PRA Group by 401.6% during the 2nd quarter. Assenagon Asset Management S.A. now owns 601,444 shares of the business services provider’s stock valued at $11,421,000 after purchasing an additional 481,538 shares during the last quarter. Millennium Management LLC lifted its holdings in shares of PRA Group by 242.6% during the 4th quarter. Millennium Management LLC now owns 464,320 shares of the business services provider’s stock valued at $8,214,000 after purchasing an additional 328,804 shares during the last quarter. Jane Street Group LLC boosted its position in shares of PRA Group by 256.7% in the 4th quarter. Jane Street Group LLC now owns 397,207 shares of the business services provider’s stock worth $7,027,000 after purchasing an additional 285,858 shares in the last quarter. Finally, Ameriprise Financial Inc. grew its stake in PRA Group by 130.9% during the 2nd quarter. Ameriprise Financial Inc. now owns 428,135 shares of the business services provider’s stock worth $6,315,000 after buying an additional 242,721 shares during the last quarter. Hedge funds and other institutional investors own 97.22% of the company’s stock.

PRA Group Stock Performance

The company has a 50 day moving average of $17.00 and a two-hundred day moving average of $16.58. The stock has a market capitalization of $782.88 million, a PE ratio of -2.87 and a beta of 1.11.

PRA Group Company Profile

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.