PRA Group (NASDAQ:PRAA) Stock Crosses Below 200-Day Moving Average Following Weak Earnings

Key Points

• PRA Group missed quarterly expectations: EPS was $0.39 versus the $0.80 consensus, while revenue of $286.27 million fell short of the $307.40 million estimate.
• Following the weak results, shares fell below their 200-day moving average of $17.59, reaching an intraday low of $12.67 and last trading at $12.92.
• Analyst sentiment is cautious: MarketBeat reports an average “Reduce” rating, with three analysts at Hold and one at Sell.

Shares of PRA Group, Inc. (NASDAQ:PRAA - Get Free Report) crossed below its 200-day moving average during trading on Friday after the company announced weaker than expected quarterly earnings. The stock has a 200-day moving average of $17.59 and traded as low as $12.67. PRA Group shares last traded at $12.92, with a volume of 1,772,632 shares changing hands.

The business services provider reported $0.39 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.80 by ($0.41). PRA Group had a negative net margin of 19.91% and a positive return on equity of 15.56%. The company had revenue of $286.27 million during the quarter, compared to the consensus estimate of $307.40 million.

Analysts Set New Price Targets

Several equities analysts recently commented on the stock. Weiss Ratings raised shares of PRA Group from a "sell (d)" rating to a "sell (d+)" rating in a research report on Thursday, October 8th. Wall Street Zen downgraded PRA Group from a "strong-buy" rating to a "buy" rating in a research note on Sunday, November 1st. Finally, Zacks Research lowered shares of PRA Group from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, October 6th. Three analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, PRA Group has an average rating of "Reduce".

Institutional Trading of PRA Group

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Russell Investments Group Ltd. boosted its position in PRA Group by 5.0% during the third quarter. Russell Investments Group Ltd. now owns 94,224 shares of the business services provider's stock worth $1,836,000 after acquiring an additional 4,496 shares during the last quarter. Blueprint Investment Partners LLC purchased a new position in PRA Group in the third quarter valued at approximately $326,000. Blueprint Financial Advisors LLC acquired a new position in shares of PRA Group during the 3rd quarter valued at $326,000. Financial Management Professionals Inc. purchased a new stake in shares of PRA Group in the third quarter worth about $30,000. Finally, Simplicity Wealth LLC acquired a new stake in PRA Group in the third quarter valued at approximately $264,000. 97.22% of the stock is owned by institutional investors and hedge funds.

PRA Group Stock Performance

The firm has a market capitalization of $486.44 million, a price-to-earnings ratio of 3.16 and a beta of 1.15. The stock's fifty day moving average is $19.55 and its two-hundred day moving average is $17.59.

PRA Group Company Profile

PRA Group, Inc is a global financial services company that purchases and manages portfolios of defaulted consumer accounts. The company works with individuals to help resolve outstanding obligations and provides account management, customer service and debt recovery solutions for acquired portfolios.

The company serves consumers and financial institutions across North America, Europe and Australia. Its activities include acquiring nonperforming consumer debt from banks, credit card companies and other financial institutions, as well as servicing portfolios on behalf of third parties in selected markets.

PRA Group was founded in 1996 and is headquartered in Norfolk, Virginia.

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