PRA Group (NASDAQ:PRAA) Sets New 12-Month High - Here's Why

Key Points

• PRA Group hit a new 52-week high — shares traded as high as $21.45 (last $21.3130) on volume of 259,702 shares.
• Quarterly earnings beat expectations — PRA reported EPS of $1.46 vs. $0.50 expected and revenue of $333.39M vs. $288.86M, while showing a negative net margin (−25.39%) but a 10.5% return on equity.
• Analyst sentiment is mixed with an overall "Hold" — one Buy, three Hold, one Sell and a consensus price target of $25, while institutional ownership is very high at 97.22% with several institutions increasing positions.

PRA Group, Inc. (NASDAQ:PRAA - Get Free Report) shares hit a new 52-week high on Monday . The company traded as high as $21.45 and last traded at $21.3130, with a volume of 259702 shares trading hands. The stock had previously closed at $21.09.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on PRAA. Citizens Jmp lowered PRA Group from a "market outperform" rating to a "market perform" rating in a research note on Wednesday, January 28th. Citigroup cut PRA Group from an "outperform" rating to a "market perform" rating in a research note on Wednesday, January 28th. Weiss Ratings reiterated a "sell (d)" rating on shares of PRA Group in a report on Friday, March 27th. Finally, Zacks Research lowered PRA Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, January 5th. One research analyst has rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $25.00.

PRA Group Price Performance

The company has a market cap of $814.56 million, a P/E ratio of -2.72 and a beta of 1.14. The stock's 50-day moving average is $16.12 and its two-hundred day moving average is $15.75.

PRA Group (NASDAQ:PRAA - Get Free Report) last issued its quarterly earnings data on Thursday, February 26th. The business services provider reported $1.46 earnings per share for the quarter, beating analysts' consensus estimates of $0.50 by $0.96. PRA Group had a negative net margin of 25.39% and a positive return on equity of 10.50%. The company had revenue of $333.39 million for the quarter, compared to the consensus estimate of $288.86 million. On average, analysts predict that PRA Group, Inc. will post 2.1 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of PRA Group by 4.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 23,081 shares of the business services provider's stock valued at $476,000 after purchasing an additional 1,020 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of PRA Group by 3.8% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 109,004 shares of the business services provider's stock valued at $2,248,000 after purchasing an additional 4,010 shares during the period. Cetera Investment Advisers raised its position in shares of PRA Group by 28.8% during the 2nd quarter. Cetera Investment Advisers now owns 14,446 shares of the business services provider's stock valued at $213,000 after purchasing an additional 3,229 shares during the period. JPMorgan Chase & Co. raised its position in shares of PRA Group by 59.1% during the 2nd quarter. JPMorgan Chase & Co. now owns 217,861 shares of the business services provider's stock valued at $3,213,000 after purchasing an additional 80,945 shares during the period. Finally, Invesco Ltd. raised its position in shares of PRA Group by 15.5% during the 2nd quarter. Invesco Ltd. now owns 819,742 shares of the business services provider's stock valued at $12,091,000 after purchasing an additional 109,857 shares during the period. 97.22% of the stock is currently owned by institutional investors.

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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