World Acceptance Corporation (NASDAQ:WRLD) Sees Large Growth in Short Interest

Key Points

• World Acceptance saw a large rise in short interest, increasing 24.2% in March to 434,180 shares (about 15.1% of shares shorted) with a days-to-cover of 2.6.
• The company missed quarterly estimates, reporting EPS of -$0.19 vs. $0.58 expected and revenue of $128.47M vs. $133.49M, and the stock was down ~2.9% (market cap ≈ $664.7M, P/E ~17.2).
• Insider John L. Calmes Jr. sold 1,000 shares recently, institutional ownership is high at ~83.6%, and analysts' consensus rating is Hold.

World Acceptance Corporation (NASDAQ:WRLD - Get Free Report) was the target of a large growth in short interest during the month of March. As of March 31st, there was short interest totaling 434,180 shares, a growth of 24.2% from the March 15th total of 349,634 shares. Currently, 15.1% of the shares of the company are short sold. Based on an average trading volume of 167,312 shares, the days-to-cover ratio is presently 2.6 days.

World Acceptance Stock Down 2.9%

Shares of WRLD stock opened at $134.55 on Thursday. The company has a market capitalization of $664.68 million, a price-to-earnings ratio of 17.23 and a beta of 1.17. World Acceptance has a one year low of $110.00 and a one year high of $185.48. The company's fifty day moving average price is $135.34 and its 200-day moving average price is $142.96. The company has a debt-to-equity ratio of 1.64, a current ratio of 25.01 and a quick ratio of 25.01.

World Acceptance (NASDAQ:WRLD - Get Free Report) last announced its quarterly earnings data on Tuesday, January 27th. The credit services provider reported ($0.19) EPS for the quarter, missing the consensus estimate of $0.58 by ($0.77). The firm had revenue of $128.47 million for the quarter, compared to the consensus estimate of $133.49 million. World Acceptance had a net margin of 7.46% and a return on equity of 10.80%. Sell-side analysts expect that World Acceptance will post 14 EPS for the current fiscal year.

Insider Buying and Selling at World Acceptance

In other news, insider John L. Calmes, Jr. sold 1,000 shares of World Acceptance stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $141.88, for a total transaction of $141,880.00. Following the transaction, the insider owned 50,334 shares in the company, valued at $7,141,387.92. This trade represents a 1.95% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. 41.60% of the stock is owned by corporate insiders.

Institutional Trading of World Acceptance

Institutional investors and hedge funds have recently modified their holdings of the company. iSAM Funds UK Ltd bought a new stake in shares of World Acceptance during the 3rd quarter valued at $30,000. Russell Investments Group Ltd. raised its position in shares of World Acceptance by 241.2% during the 3rd quarter. Russell Investments Group Ltd. now owns 331 shares of the credit services provider's stock valued at $56,000 after purchasing an additional 234 shares during the period. Tower Research Capital LLC TRC increased its holdings in World Acceptance by 103.2% in the 2nd quarter. Tower Research Capital LLC TRC now owns 569 shares of the credit services provider's stock valued at $94,000 after acquiring an additional 289 shares during the last quarter. Aquatic Capital Management LLC bought a new stake in World Acceptance in the 3rd quarter valued at $138,000. Finally, Wealth Enhancement Advisory Services LLC bought a new stake in World Acceptance in the 3rd quarter valued at $215,000. 83.63% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several research analysts have recently weighed in on WRLD shares. Zacks Research upgraded shares of World Acceptance from a "strong sell" rating to a "hold" rating in a research note on Monday, December 22nd. Weiss Ratings reiterated a "hold (c)" rating on shares of World Acceptance in a research note on Friday, March 27th. Two research analysts have rated the stock with a Hold rating, According to MarketBeat, the stock has an average rating of "Hold".

About World Acceptance

World Acceptance Corporation NASDAQ: WRLD is a consumer finance company headquartered in Greenville, South Carolina. Founded in 1972, the company provides credit solutions to underserved customers who may have limited access to traditional banking services. Over the decades, World Acceptance has built a reputation for tailored lending that emphasizes responsible underwriting and personalized customer service.

The company's core product offerings include short-term installment loans designed to meet the immediate financial needs of its clients.

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