PRA Group (NASDAQ:PRAA) Stock Price Passes Above 200-Day Moving Average - Here's Why

Key Points

• PRA Group shares crossed above their 200-day moving average on Wednesday, trading as high as $17.92 before closing at $17.51. The 200-day average was $16.52, suggesting a short-term technical strength signal.
• Analyst sentiment remains mixed, with the stock carrying an average “Hold” rating and a consensus price target of $25.00. Recent notes included a downgrade from Wall Street Zen to Buy and a reissued Sell rating from Weiss Ratings.
• Recent earnings topped expectations, as PRA Group reported $0.73 EPS versus the $0.51 consensus and revenue of $314.53 million versus $295.90 million expected. Despite the beat, the company still posted a negative net margin of 22.51%.

PRA Group, Inc. (NASDAQ:PRAA - Get Free Report) crossed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $16.52 and traded as high as $17.92. PRA Group shares last traded at $17.51, with a volume of 431,256 shares trading hands.

Wall Street Analyst Weigh In

PRAA has been the subject of several research analyst reports. Wall Street Zen lowered shares of PRA Group from a "strong-buy" rating to a "buy" rating in a research report on Sunday, June 7th. Weiss Ratings reissued a "sell (d)" rating on shares of PRA Group in a research report on Wednesday, June 24th. 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. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $25.00.

PRA Group Price Performance

The company has a market cap of $667.83 million, a price-to-earnings ratio of -2.45 and a beta of 1.10. The company's 50-day simple moving average is $16.78 and its 200-day simple moving average is $16.52.

PRA Group (NASDAQ:PRAA - Get Free Report) last posted its earnings results on Thursday, May 7th. The business services provider reported $0.73 EPS for the quarter, topping analysts' consensus estimates of $0.51 by $0.22. The business had revenue of $314.53 million for the quarter, compared to analysts' expectations of $295.90 million. PRA Group had a negative net margin of 22.51% and a positive return on equity of 13.19%. Equities analysts predict that PRA Group, Inc. will post 2.52 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Los Angeles Capital Management LLC acquired a new stake in shares of PRA Group during the fourth quarter worth approximately $27,000. EverSource Wealth Advisors LLC raised its holdings in PRA Group by 145.6% in the fourth quarter. EverSource Wealth Advisors LLC now owns 2,481 shares of the business services provider's stock valued at $44,000 after acquiring an additional 1,471 shares in the last quarter. Larson Financial Group LLC boosted its stake in PRA Group by 146.8% during the 4th 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. Tower Research Capital LLC TRC boosted its stake in PRA Group by 375.1% during the 2nd quarter. Tower Research Capital LLC TRC now owns 4,784 shares of the business services provider's stock valued at $71,000 after acquiring an additional 3,777 shares during the last quarter. Finally, Globeflex Capital L P acquired a new position in PRA Group during the 2nd quarter worth $102,000. Hedge funds and other institutional investors own 97.22% of the company's stock.

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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