PRA Group, Inc. $PRAA Holdings Raised by Hsbc Holdings PLC

Key Points

• Institutional ownership increased: HSBC Holdings raised its PRA Group stake by 91.2% to 123,822 shares, while several other investment firms also increased holdings. Hedge funds and institutions collectively own 97.22% of the company.
• Quarterly results beat expectations: PRA Group reported earnings of $1.51 per share versus the $0.52 consensus estimate, and revenue of $372.17 million compared with expectations of $299.99 million.
• Analyst sentiment remains mixed: Ratings range from Strong Buy to Sell, producing a consensus “Hold” rating and an average price target of $26, compared with the stock’s reported price of $18.93.

Hsbc Holdings PLC raised its stake in shares of PRA Group, Inc. (NASDAQ:PRAA - Free Report) by 91.2% in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 123,822 shares of the business services provider's stock after buying an additional 59,071 shares during the period. Hsbc Holdings PLC owned about 0.33% of PRA Group worth $2,275,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also modified their holdings of PRAA. BlackRock Inc. purchased a new stake in shares of PRA Group during the 2nd quarter worth about $84,183,000. Topline Capital Management LLC grew its stake in shares of PRA Group by 168.3% in the 2nd quarter. Topline Capital Management LLC now owns 2,250,629 shares of the business services provider's stock valued at $33,197,000 after buying an additional 1,411,707 shares in the last quarter. State Street Corp grew its stake in shares of PRA Group by 0.3% in the 4th quarter. State Street Corp now owns 1,499,488 shares of the business services provider's stock valued at $26,526,000 after buying an additional 4,895 shares in the last quarter. Wellington Management Group LLP increased its holdings in PRA Group by 13.7% in the fourth quarter. Wellington Management Group LLP now owns 1,296,830 shares of the business services provider's stock worth $22,941,000 after buying an additional 156,520 shares during the last quarter. Finally, Invesco Ltd. increased its holdings in PRA Group by 15.5% in the second quarter. Invesco Ltd. now owns 819,742 shares of the business services provider's stock worth $12,091,000 after buying an additional 109,857 shares during the last quarter. 97.22% of the stock is currently owned by hedge funds and other institutional investors.

PRA Group Stock Performance

Shares of PRAA opened at $18.93 on Friday. The company has a 50-day simple moving average of $18.54 and a 200-day simple moving average of $17.73. PRA Group, Inc. has a 52 week low of $10.25 and a 52 week high of $22.55. The firm has a market capitalization of $712.71 million, a P/E ratio of -2.81 and a beta of 1.11.

PRA Group (NASDAQ:PRAA - Get Free Report) last released its earnings results on Thursday, August 6th. The business services provider reported $1.51 earnings per share for the quarter, topping analysts' consensus estimates of $0.52 by $0.99. PRA Group had a positive return on equity of 15.56% and a negative net margin of 19.91%.The business had revenue of $372.17 million for the quarter, compared to the consensus estimate of $299.99 million. As a group, equities analysts forecast that PRA Group, Inc. will post 3.93 earnings per share for the current year.

Analyst Ratings Changes

Several analysts have commented on the stock. Wall Street Zen downgraded shares of PRA Group from a "strong-buy" rating to a "buy" rating in a research report on Saturday, September 5th. Zacks Research upgraded shares of PRA Group from a "hold" rating to a "strong-buy" rating in a report on Monday, August 10th. Finally, Weiss Ratings reaffirmed a "sell (d)" rating on shares of PRA Group in a research note on Wednesday, June 24th. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $26.00.

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.

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