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

Key Points

• Shares gapped up — WRLD opened at $150.47 after a $141.38 close and was last trading around $153.67, following the premarket gap on Tuesday.
• Quarterly earnings missed expectations — World Acceptance reported Q results with EPS of ($0.19) vs. consensus $0.58 and revenue $128.47M vs. $133.49M, indicating weaker-than-expected performance.
• Mixed sentiment and concentrated ownership — the consensus analyst rating is "Hold," insiders own 41.6% (including a recent insider sale) and institutional investors hold about 83.63% of the stock.

Shares of World Acceptance Corporation (NASDAQ:WRLD - Get Free Report) gapped up before the market opened on Tuesday . The stock had previously closed at $141.38, but opened at $150.47. World Acceptance shares last traded at $153.6710, with a volume of 8,572 shares changing hands.

Wall Street Analyst Weigh In

A number of research analysts recently commented on the company. Weiss Ratings restated a "hold (c)" rating on shares of World Acceptance in a research note on Friday, March 27th. Zacks Research upgraded World Acceptance from a "strong sell" rating to a "hold" rating in a research note on Monday, December 22nd. Two research analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the company has an average rating of "Hold".

World Acceptance Stock Performance

The stock has a market capitalization of $745.03 million, a P/E ratio of 19.35 and a beta of 1.17. The stock has a 50 day moving average of $136.52 and a 200 day moving average of $142.14. The company has a debt-to-equity ratio of 1.64, a quick ratio of 25.01 and a current ratio of 25.01.

World Acceptance (NASDAQ:WRLD - Get Free Report) last issued its quarterly earnings data on Tuesday, January 27th. The credit services provider reported ($0.19) EPS for the quarter, missing analysts' consensus estimates of $0.58 by ($0.77). The company had revenue of $128.47 million for the quarter, compared to the consensus estimate of $133.49 million. World Acceptance had a return on equity of 10.80% and a net margin of 7.46%.

Insider Activity

In other news, insider John L. Calmes, Jr. sold 1,000 shares of the stock in a transaction on Tuesday, March 10th. The stock was sold at an average price of $141.88, for a total value of $141,880.00. Following the completion of the transaction, the insider owned 50,334 shares of the company's stock, valued at approximately $7,141,387.92. This represents a 1.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Insiders own 41.60% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. iSAM Funds UK Ltd bought a new position in shares of World Acceptance in the third quarter worth $30,000. Russell Investments Group Ltd. grew its stake in shares of World Acceptance by 241.2% in the third quarter. Russell Investments Group Ltd. now owns 331 shares of the credit services provider's stock worth $56,000 after purchasing an additional 234 shares in the last quarter. Tower Research Capital LLC TRC grew its stake in shares of World Acceptance by 103.2% in the second quarter. Tower Research Capital LLC TRC now owns 569 shares of the credit services provider's stock worth $94,000 after purchasing an additional 289 shares in the last quarter. Aquatic Capital Management LLC bought a new position in shares of World Acceptance in the third quarter worth $138,000. Finally, Wealth Enhancement Advisory Services LLC bought a new position in shares of World Acceptance in the third quarter worth $215,000. Institutional investors own 83.63% of the company's stock.

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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