PRA Group (NASDAQ:PRAA) Raised to Strong-Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded PRA Group from “buy” to “strong-buy,” while Zacks Research also issued a strong-buy upgrade. However, the broader analyst consensus remains “Hold,” with a $26 target price.
• PRA Group’s shares opened at $20.60, up 1.7%, after trading between $10.25 and $22.55 over the past year. The company recently reported quarterly EPS of $1.51, well above the $0.52 estimate, and revenue of $372.17 million versus expectations of $299.99 million.
• Institutional investors and hedge funds own 97.22% of PRA Group, with several firms—including HSBC Holdings, PDT Partners and Legal & General—establishing or adding positions during the second quarter.

PRA Group (NASDAQ:PRAA - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a research note issued on Saturday.

PRAA has been the topic of a number of other reports. Zacks Research upgraded PRA Group from a "hold" rating to a "strong-buy" rating in a research report on Monday, August 10th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of PRA Group in a research report on Wednesday, June 24th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, two have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $26.00.

PRA Group Stock Up 1.7%

Shares of PRAA opened at $20.60 on Friday. The firm has a market cap of $775.59 million, a price-to-earnings ratio of -3.06 and a beta of 1.11. The company's fifty day moving average is $17.56 and its 200-day moving average is $16.72. PRA Group has a 12 month low of $10.25 and a 12 month high of $22.55.

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

Institutional Investors Weigh In On PRA Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Jupiter Topco LLC acquired a new position in shares of PRA Group during the second quarter worth approximately $349,000. Hsbc Holdings PLC bought a new stake in shares of PRA Group during the second quarter valued at approximately $2,275,000. PDT Partners LLC acquired a new stake in shares of PRA Group in the second quarter valued at approximately $531,000. Canada Pension Plan Investment Board acquired a new stake in shares of PRA Group in the second quarter valued at approximately $313,000. Finally, Legal & General Group Plc bought a new position in PRA Group in the 2nd quarter worth approximately $537,000. Institutional investors and hedge funds own 97.22% of the company's stock.

About PRA Group

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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