World Acceptance (NASDAQ:WRLD) Shares Cross Above 200-Day Moving Average - Should You Sell?

Key Points

• World Acceptance shares moved above their 200-day moving average, reaching $172.38 before last trading at $170.07; the 200-day average is $170.32, while the 50-day average is $187.76.
• Analysts maintain a cautious outlook, with the stock carrying an average “Hold” rating. The company’s latest quarterly EPS of $2.12 substantially exceeded the $0.58 consensus estimate, though revenue of $127.79 million fell short of expectations.
• Insiders sold $26.6 million worth of shares over the past three months, including a significant reduction by Prescott General Partners. Institutional investors own 83.63% of the company, while insiders retain a 38% ownership stake.

World Acceptance Corporation (NASDAQ:WRLD - Get Free Report)'s share price passed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $170.32 and traded as high as $172.38. World Acceptance shares last traded at $170.07, with a volume of 51,942 shares changing hands.

Analysts Set New Price Targets

Several research firms have recently commented on WRLD. Weiss Ratings reissued a "hold (c)" rating on shares of World Acceptance in a report on Monday. Wall Street Zen cut shares of World Acceptance from a "strong-buy" rating to a "buy" rating in a research note on Monday, August 10th. Two equities research analysts have rated the stock with a Hold rating, According to MarketBeat, World Acceptance presently has an average rating of "Hold".

World Acceptance Stock Performance

The company has a market capitalization of $792.53 million, a P/E ratio of 20.10 and a beta of 1.14. The business has a 50 day moving average of $187.76 and a 200 day moving average of $170.32. The company has a quick ratio of 13.49, a current ratio of 13.49 and a debt-to-equity ratio of 1.29.

World Acceptance (NASDAQ:WRLD - Get Free Report) last released its quarterly earnings data on Friday, July 24th. The credit services provider reported $2.12 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.58 by $1.54. The business had revenue of $127.79 million for the quarter, compared to the consensus estimate of $143.90 million. World Acceptance had a return on equity of 12.13% and a net margin of 6.71%.

Insider Buying and Selling

In related news, insider John Calmes, Jr. sold 2,000 shares of the company's stock in a transaction on Thursday, July 30th. The shares were sold at an average price of $186.00, for a total transaction of $372,000.00. Following the sale, the insider owned 48,334 shares of the company's stock, valued at $8,990,124. This represents a 3.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Prescott General Partners Llc sold 133,199 shares of the company's stock in a transaction on Friday, August 14th. The shares were sold at an average price of $187.69, for a total transaction of $25,000,120.31. Following the sale, the insider directly owned 31,148 shares in the company, valued at approximately $5,846,168.12. The trade was a 81.05% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 140,896 shares of company stock valued at $26,568,401 in the last three months. Corporate insiders own 38.00% of the company's stock.

Institutional Trading of World Acceptance

A number of large investors have recently made changes to their positions in the business. Bank of New York Mellon Corp bought a new position in shares of World Acceptance in the 2nd quarter valued at about $4,577,000. Bank of America Corp DE increased its stake in World Acceptance by 97.5% during the first quarter. Bank of America Corp DE now owns 20,545 shares of the credit services provider's stock worth $2,774,000 after acquiring an additional 10,140 shares during the last quarter. Public Employees Retirement System of Ohio bought a new stake in World Acceptance during the second quarter worth approximately $1,239,000. Jennison Associates LLC purchased a new stake in World Acceptance during the first quarter valued at approximately $680,000. Finally, Squarepoint Ops LLC raised its position in World Acceptance by 82.5% during the second quarter. Squarepoint Ops LLC now owns 7,004 shares of the credit services provider's stock valued at $1,568,000 after purchasing an additional 3,166 shares during the period. 83.63% of the stock is currently owned by institutional investors.

About World Acceptance

World Acceptance Corporation is a consumer finance company that provides small, short-term installment loans and related financial services to individuals who may have limited access to traditional credit. The company primarily serves customers through a network of branch offices operating under the World Finance name.

Its products generally include personal installment loans, with loan proceeds commonly used for household expenses, emergency needs and other personal purposes. Depending on the market and applicable regulations, World Acceptance may also offer optional credit-related products and ancillary services, such as insurance products and tax preparation services.

Founded in 1962 and headquartered in Greenville, South Carolina, World Acceptance serves customers primarily in the United States, with operations concentrated in the Southeast and other regions where its branch network is established.

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