World Acceptance (NASDAQ:WRLD) Sees Large Volume Increase After Analyst Upgrade

Key Points

• World Acceptance Corporation experienced a significant increase in trading volume, jumping 64% after an upgrade from Weiss Ratings from a hold rating to a buy rating.
• Insider transactions showed major selling activity, with Prescott General Partners selling over 347,000 shares, indicating a decrease of nearly 89.25% in their stock ownership.
• Despite the recent upgrade, other analysts have varying ratings, with one calling it a buy, while two maintain a hold rating, suggesting mixed sentiment around the stock's future performance.

World Acceptance Corporation (NASDAQ:WRLD - Get Free Report) saw unusually-strong trading volume on Thursday after Weiss Ratings upgraded the stock from a hold (c+) rating to a buy (b-) rating. Approximately 64,612 shares were traded during mid-day trading, an increase of 64% from the previous session's volume of 39,440 shares.The stock last traded at $179.64 and had previously closed at $184.21.

Other equities research analysts have also recently issued reports about the company. Wall Street Zen cut World Acceptance from a "strong-buy" rating to a "hold" rating in a report on Saturday, July 26th. Zacks Research upgraded World Acceptance from a "strong sell" rating to a "hold" rating in a report on Monday, September 22nd. One investment analyst has rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $10.00.

Insider Buying and Selling at World Acceptance

In related news, insider Prescott General Partners Llc sold 347,064 shares of the firm's stock in a transaction dated Thursday, September 4th. The stock was sold at an average price of $172.88, for a total transaction of $60,000,424.32. Following the transaction, the insider owned 41,804 shares of the company's stock, valued at $7,227,075.52. This trade represents a 89.25% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Charles D. Way sold 402 shares of the firm's stock in a transaction dated Wednesday, August 6th. The stock was sold at an average price of $160.00, for a total value of $64,320.00. Following the transaction, the director directly owned 15,395 shares in the company, valued at approximately $2,463,200. This represents a 2.54% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 356,559 shares of company stock valued at $61,548,969. 41.60% of the stock is owned by insiders.

Hedge Funds Weigh In On World Acceptance

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Bridgeway Capital Management LLC lifted its position in World Acceptance by 33.1% in the second quarter. Bridgeway Capital Management LLC now owns 57,928 shares of the credit services provider's stock valued at $9,565,000 after purchasing an additional 14,406 shares during the period. AQR Capital Management LLC lifted its position in World Acceptance by 51.1% in the second quarter. AQR Capital Management LLC now owns 41,380 shares of the credit services provider's stock valued at $6,833,000 after purchasing an additional 13,999 shares during the period. American Century Companies Inc. lifted its position in World Acceptance by 20.9% in the second quarter. American Century Companies Inc. now owns 74,973 shares of the credit services provider's stock valued at $12,380,000 after purchasing an additional 12,954 shares during the period. Basswood Capital Management L.L.C. acquired a new stake in World Acceptance in the second quarter valued at about $1,887,000. Finally, HRT Financial LP acquired a new stake in shares of World Acceptance during the 2nd quarter valued at approximately $1,808,000. Hedge funds and other institutional investors own 83.63% of the company's stock.

World Acceptance Stock Performance

The stock's 50-day moving average price is $169.81 and its 200-day moving average price is $154.89. The company has a debt-to-equity ratio of 1.10, a quick ratio of 17.83 and a current ratio of 17.83. The company has a market capitalization of $979.09 million, a price-to-earnings ratio of 12.12 and a beta of 1.35.

World Acceptance (NASDAQ:WRLD - Get Free Report) last issued its quarterly earnings data on Thursday, July 24th. The credit services provider reported $0.25 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.44 by ($2.19). World Acceptance had a return on equity of 18.95% and a net margin of 14.29%.The company had revenue of $132.45 million for the quarter, compared to analyst estimates of $122.38 million. As a group, equities research analysts expect that World Acceptance Corporation will post 14 earnings per share for the current year.

About World Acceptance

World Acceptance Corporation engages in consumer finance business in the United States. The company provides short-term small installment loans, medium-term larger installment loans, related credit insurance, and ancillary products and services to individuals. It offers income tax return preparation and filing services; and automobile club memberships.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.