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

PRA Group, Inc. (NASDAQ:PRAA)’s share price gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $20.56, but opened at $22.20. PRA Group shares last traded at $22.52, with a volume of 79,270 shares traded.

The business services provider reported $0.69 EPS for the quarter, topping the consensus estimate of $0.32 by $0.37. PRA Group had a return on equity of 0.33% and a net margin of 0.40%. The firm had revenue of $281.48 million for the quarter, compared to analyst estimates of $262.20 million. During the same period in the previous year, the company posted ($0.31) EPS. PRA Group’s revenue for the quarter was up 30.1% on a year-over-year basis.

Analysts Set New Price Targets

PRAA has been the topic of a number of recent research reports. Truist Financial reduced their price target on shares of PRA Group from $42.00 to $28.00 and set a “buy” rating on the stock in a research report on Tuesday, August 20th. StockNews.com raised PRA Group from a “hold” rating to a “buy” rating in a report on Wednesday, October 16th.

Insider Activity at PRA Group

In related news, Director Geir Olsen purchased 11,750 shares of PRA Group stock in a transaction dated Wednesday, August 7th. The stock was acquired at an average cost of $21.39 per share, with a total value of $251,332.50. Following the completion of the transaction, the director now directly owns 11,750 shares of the company’s stock, valued at $251,332.50. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 2.00% of the company’s stock.

Institutional Trading of PRA Group

Several hedge funds and other institutional investors have recently modified their holdings of the company. Point72 Asia Singapore Pte. Ltd. purchased a new stake in shares of PRA Group during the 2nd quarter worth about $29,000. nVerses Capital LLC lifted its holdings in PRA Group by 700.0% in the 2nd quarter. nVerses Capital LLC now owns 1,600 shares of the business services provider’s stock worth $31,000 after purchasing an additional 1,400 shares during the last quarter. Innealta Capital LLC bought a new stake in PRA Group during the second quarter worth approximately $57,000. SG Americas Securities LLC bought a new position in shares of PRA Group in the first quarter valued at approximately $103,000. Finally, Quest Partners LLC lifted its stake in shares of PRA Group by 14.2% in the second quarter. Quest Partners LLC now owns 10,179 shares of the business services provider’s stock worth $200,000 after buying an additional 1,267 shares during the last quarter. 97.22% of the stock is currently owned by hedge funds and other institutional investors.

PRA Group Stock Performance

The firm has a market capitalization of $940.17 million, a price-to-earnings ratio of 236.72 and a beta of 1.50. The business’s 50 day moving average is $21.34 and its 200-day moving average is $22.03.

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.