World Acceptance (NASDAQ:WRLD) Shares Gap Down Following Weak Earnings

Key Points

• World Acceptance Corporation shares dropped from a previous closing price of $177.75 to $170.18 after the company reported a significantly lower than expected earnings per share (EPS) of ($0.38).
• Despite the weak earnings announcement, analysts have mixed views, with Zacks Research upgrading the stock to a "hold" while Weiss Ratings upgraded it to "buy," but Wall Street Zen downgraded from "strong-buy" to "hold."
• Insiders have sold a total of 356,559 shares worth approximately $61.5 million over the last three months, indicating potential decreased confidence among key stakeholders.

World Acceptance Corporation (NASDAQ:WRLD - Get Free Report) gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $177.75, but opened at $170.18. World Acceptance shares last traded at $155.03, with a volume of 6,578 shares.

The credit services provider reported ($0.38) EPS for the quarter, missing the consensus estimate of $1.87 by ($2.25). World Acceptance had a return on equity of 18.95% and a net margin of 14.29%.

Analyst Upgrades and Downgrades

WRLD has been the subject of several research analyst reports. Zacks Research raised World Acceptance from a "strong sell" rating to a "hold" rating in a research note on Monday, September 22nd. Weiss Ratings raised World Acceptance from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday, October 8th. Finally, Wall Street Zen lowered World Acceptance from a "strong-buy" rating to a "hold" rating in a research note on Saturday, July 26th. One investment analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $10.00.

Insider Buying and Selling at World Acceptance

In other World Acceptance news, SVP Alice Lindsay Caulder sold 1,000 shares of the company's stock in a transaction that occurred on Wednesday, September 17th. The stock was sold at an average price of $167.33, for a total transaction of $167,330.00. Following the completion of the transaction, the senior vice president owned 16,515 shares of the company's stock, valued at $2,763,454.95. This represents a 5.71% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Ken R. Bramlett, Jr. sold 3,389 shares of the company's stock in a transaction that occurred on Wednesday, September 10th. The stock was sold at an average price of $167.19, for a total value of $566,606.91. Following the transaction, the director owned 32,205 shares in the company, valued at $5,384,353.95. This trade represents a 9.52% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 356,559 shares of company stock worth $61,548,969 over the last three months. 41.60% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. GAMMA Investing LLC grew its stake in shares of World Acceptance by 570.9% in the 1st quarter. GAMMA Investing LLC now owns 369 shares of the credit services provider's stock worth $47,000 after buying an additional 314 shares during the last quarter. Magnetar Financial LLC bought a new position in World Acceptance in the 1st quarter worth $308,000. Principal Financial Group Inc. raised its holdings in World Acceptance by 2.4% in the 1st quarter. Principal Financial Group Inc. now owns 16,162 shares of the credit services provider's stock worth $2,045,000 after purchasing an additional 386 shares during the period. American Century Companies Inc. raised its holdings in World Acceptance by 17.0% in the 1st quarter. American Century Companies Inc. now owns 62,019 shares of the credit services provider's stock worth $7,849,000 after purchasing an additional 9,005 shares during the period. Finally, Vanguard Group Inc. raised its holdings in World Acceptance by 2.2% in the 1st quarter. Vanguard Group Inc. now owns 349,238 shares of the credit services provider's stock worth $44,196,000 after purchasing an additional 7,429 shares during the period. Hedge funds and other institutional investors own 83.63% of the company's stock.

World Acceptance Trading Down 8.7%

The stock has a fifty day moving average of $172.51 and a 200 day moving average of $158.20. The company has a market capitalization of $884.81 million, a P/E ratio of 10.91 and a beta of 1.35. The company has a debt-to-equity ratio of 1.10, a quick ratio of 17.83 and a current ratio of 17.83.

World Acceptance Company Profile

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.

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