PRA Group (NASDAQ:PRAA) Shares Gap Up - Here's What Happened

Key Points

• Gapped up: PRA Group shares opened at $22.09 after closing at $21.15 and last traded at $22.1750 on a volume of 15,404 shares.
• Earnings beat: The company reported Q4 EPS of $1.46 versus $0.50 expected and revenue of $333.39M versus $288.86M, despite a negative net margin of 25.39%.
• Analyst stance is cautious after several downgrades, with a MarketBeat consensus rating of Hold and a $25.00 price target; the stock has a market cap of about $860M and a negative P/E of -2.87.

PRA Group, Inc. (NASDAQ:PRAA - Get Free Report)'s stock price gapped up before the market opened on Tuesday . The stock had previously closed at $21.15, but opened at $22.09. PRA Group shares last traded at $22.1750, with a volume of 15,404 shares traded.

Analyst Ratings Changes

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

PRA Group Stock Performance

The firm's 50-day moving average is $17.35 and its 200 day moving average is $16.04. The stock has a market cap of $860.23 million, a PE ratio of -2.87 and a beta of 1.14.

PRA Group (NASDAQ:PRAA - Get Free Report) last issued its quarterly earnings results on Thursday, February 26th. The business services provider reported $1.46 earnings per share for the quarter, topping analysts' consensus estimates of $0.50 by $0.96. The firm had revenue of $333.39 million during the quarter, compared to analysts' expectations of $288.86 million. PRA Group had a negative net margin of 25.39% and a positive return on equity of 10.50%. On average, sell-side analysts predict that PRA Group, Inc. will post 2.35 EPS for the current fiscal year.

Hedge Funds Weigh In On PRA Group

Hedge funds and other institutional investors have recently made changes to their positions in the stock. The Manufacturers Life Insurance Company lifted its holdings in shares of PRA Group by 5.6% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 14,523 shares of the business services provider's stock valued at $214,000 after buying an additional 768 shares during the period. Arizona State Retirement System grew its holdings in PRA Group by 7.1% during the third quarter. Arizona State Retirement System now owns 11,728 shares of the business services provider's stock worth $181,000 after acquiring an additional 781 shares during the period. Focus Partners Wealth grew its holdings in PRA Group by 1.0% during the fourth quarter. Focus Partners Wealth now owns 94,900 shares of the business services provider's stock worth $1,679,000 after acquiring an additional 927 shares during the period. SG Americas Securities LLC raised its position in PRA Group by 8.8% in the fourth quarter. SG Americas Securities LLC now owns 12,051 shares of the business services provider's stock worth $213,000 after acquiring an additional 974 shares in the last quarter. Finally, Mariner LLC lifted its holdings in PRA Group by 3.2% in the third quarter. Mariner LLC now owns 31,045 shares of the business services provider's stock valued at $479,000 after acquiring an additional 975 shares during the period. Hedge funds and other institutional investors 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.