PRA Group (NASDAQ:PRAA) Stock Price Crosses Above 200-Day Moving Average - Should You Sell?

Key Points

• PRA Group shares crossed above its 200-day moving average (200‑day = $15.48), trading as high as $18.67 and last at $17.81 on volume of about 319,182 shares — a technical bullish signal.
• Analysts' consensus is a Hold (1 Buy, 3 Hold, 1 Sell) with a consensus target price of $25.00, and several firms have recently downgraded the stock.
• PRA reported a strong quarter, beating estimates with $1.46 EPS vs. $0.50 expected and $333.4M revenue vs. $288.9M expected, though the company still shows a negative trailing net margin and a negative PE ratio.

PRA Group, Inc. (NASDAQ:PRAA - Get Free Report) shares crossed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $15.48 and traded as high as $18.67. PRA Group shares last traded at $17.81, with a volume of 319,182 shares trading hands.

Analyst Ratings Changes

Several research firms have commented on PRAA. Weiss Ratings reissued a "sell (d)" rating on shares of PRA Group in a report on Monday, December 29th. Citizens Jmp lowered PRA Group from a "market outperform" rating to a "market perform" rating in a research note on Wednesday, January 28th. Zacks Research cut PRA Group from a "strong-buy" rating to a "hold" rating in a report on Monday, January 5th. Finally, Citigroup downgraded PRA Group from an "outperform" rating to a "market perform" rating in a research note on Wednesday, January 28th. One investment analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Hold" and a consensus target price of $25.00.

PRA Group Trading Down 3.1%

The firm's 50-day moving average price is $14.63 and its 200-day moving average price is $15.48. The stock has a market capitalization of $684.79 million, a PE ratio of -2.28 and a beta of 1.23.

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

Hedge Funds Weigh In On PRA Group

Several large investors have recently modified their holdings of the stock. Los Angeles Capital Management LLC purchased a new stake in PRA Group during the 4th quarter valued at $27,000. GAMMA Investing LLC boosted its stake in PRA Group by 301.0% during the third quarter. GAMMA Investing LLC now owns 1,684 shares of the business services provider's stock worth $26,000 after buying an additional 1,264 shares during the period. EverSource Wealth Advisors LLC boosted its stake in PRA Group by 145.6% during the fourth quarter. EverSource Wealth Advisors LLC now owns 2,481 shares of the business services provider's stock worth $44,000 after buying an additional 1,471 shares during the period. Larson Financial Group LLC increased its position in PRA Group by 146.8% during the fourth quarter. Larson Financial Group LLC now owns 2,848 shares of the business services provider's stock valued at $50,000 after acquiring an additional 1,694 shares during the last quarter. Finally, CWM LLC increased its position in PRA Group by 140.0% during the third quarter. CWM LLC now owns 4,618 shares of the business services provider's stock valued at $71,000 after acquiring an additional 2,694 shares during the last quarter. 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.

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