World Acceptance (NASDAQ:WRLD) Shares Gap Up - Still a Buy?

Key Points

• World Acceptance shares opened sharply higher, rising from a previous close of $169.65 to $178.32 before trading around $169.75; the company has a market capitalization of approximately $778.8 million.
• Analysts maintain a generally neutral outlook, with a consensus “Hold” rating from two analysts. Wall Street Zen recently downgraded the stock from “strong buy” to “buy,” while Zacks upgraded it to “hold.”
• The company beat quarterly EPS expectations, reporting $2.12 versus the $0.58 consensus, although revenue of $127.79 million missed estimates. Insiders sold roughly $25.8 million in shares over the past 90 days, while institutional investors own 83.63% of the stock.

World Acceptance Corporation (NASDAQ:WRLD - Get Free Report)'s share price gapped up prior to trading on Friday. The stock had previously closed at $169.65, but opened at $178.32. World Acceptance shares last traded at $169.75, with a volume of 34,916 shares trading hands.

Analyst Ratings Changes

WRLD has been the topic of a number of analyst reports. Weiss Ratings reaffirmed a "hold (c)" rating on shares of World Acceptance in a research note on Monday, September 21st. Zacks Research raised shares of World Acceptance to a "hold" rating in a research note on Monday, October 5th. Finally, 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 data from MarketBeat, World Acceptance presently has a consensus rating of "Hold".

World Acceptance Stock Performance

The stock has a 50 day simple moving average of $180.93 and a two-hundred day simple moving average of $175.87. The company has a market capitalization of $778.76 million, a price-to-earnings ratio of 19.61 and a beta of 1.17. The company has a debt-to-equity ratio of 1.29, a current ratio of 13.49 and a quick ratio of 13.49.

World Acceptance (NASDAQ:WRLD - Get Free Report) last released its quarterly earnings results on Friday, July 24th. The credit services provider reported $2.12 EPS for the quarter, topping the consensus estimate of $0.58 by $1.54. The company had revenue of $127.79 million for the quarter, compared to analyst estimates of $143.90 million. World Acceptance had a return on equity of 12.13% and a net margin of 6.71%. As a group, analysts anticipate that World Acceptance Corporation will post 13.18 earnings per share for the current year.

Insider Buying and Selling

In other World Acceptance news, insider John L. Calmes, Jr. sold 2,000 shares of the company's stock in a transaction dated Thursday, July 30th. The stock was sold at an average price of $186.00, for a total transaction of $372,000.00. Following the completion of the sale, the insider directly owned 48,334 shares in the company, valued at $8,990,124. This represents a 3.97% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Prescott General Partners Llc sold 133,199 shares of the stock in a transaction that occurred on Friday, August 14th. The stock was 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 of the company's stock, valued at approximately $5,846,168.12. This trade represents a 81.05% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 137,199 shares of company stock worth $25,753,600. 38.00% of the stock is owned by insiders.

Institutional Investors Weigh In On World Acceptance

A number of large investors have recently modified their holdings of the stock. IFP Advisors Inc increased its holdings in shares of World Acceptance by 158.7% in the 2nd quarter. IFP Advisors Inc now owns 119 shares of the credit services provider's stock valued at $27,000 after acquiring an additional 73 shares during the last quarter. EverSource Wealth Advisors LLC increased its position in World Acceptance by 102.4% in the 1st quarter. EverSource Wealth Advisors LLC now owns 255 shares of the credit services provider's stock valued at $34,000 after acquiring an additional 129 shares during the period. Allworth Financial LP increased its position in World Acceptance by 51.9% in the 2nd quarter. Allworth Financial LP now owns 433 shares of the credit services provider's stock valued at $97,000 after acquiring an additional 148 shares during the period. GAMMA Investing LLC increased its position in World Acceptance by 10.6% in the 3rd quarter. GAMMA Investing LLC now owns 606 shares of the credit services provider's stock valued at $103,000 after acquiring an additional 58 shares during the period. Finally, Integrated Wealth Concepts LLC bought a new stake in World Acceptance during the 2nd quarter valued at $184,000. Institutional investors and hedge funds own 83.63% of the company's stock.

About World Acceptance

World Acceptance Corporation is a consumer finance company that provides small-dollar personal installment loans and related financial services through its World Finance branch network and online channels. The company primarily serves consumers who may have limited access to traditional bank credit.

Its products and services generally include personal loans, tax return preparation and filing, and certain ancillary financial products. Loan proceeds may be used for expenses such as household needs, medical bills, automobile repairs, or other personal obligations, subject to applicable lending requirements.

Founded in 1962, World Acceptance is headquartered in Greenville, South Carolina.

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