World Acceptance (NASDAQ:WRLD) Lowered to "Hold" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded World Acceptance's stock from a "strong-buy" to a "hold" rating, impacting investor sentiment.
• World Acceptance reported a missed earnings per share estimate of $2.44, with actual EPS at only $0.25, though revenue exceeded expectations at $132.45 million.
• Insider transactions included significant sales by directors, with a total of 3,560 shares sold in the past quarter, indicating potential shifts in insider confidence.

Wall Street Zen lowered shares of World Acceptance (NASDAQ:WRLD - Free Report) from a strong-buy rating to a hold rating in a research note published on Saturday morning.

World Acceptance Stock Down 2.0%

Shares of World Acceptance stock traded down $3.18 during trading on Friday, hitting $159.13. 77,739 shares of the stock were exchanged, compared to its average volume of 61,330. The stock has a market cap of $867.26 million, a price-to-earnings ratio of 10.74 and a beta of 1.35. The firm's 50-day moving average price is $160.95 and its 200 day moving average price is $142.10. World Acceptance has a 12-month low of $101.85 and a 12-month high of $177.25. The company has a debt-to-equity ratio of 1.10, a current ratio of 17.83 and a quick ratio of 19.32.

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

Insider Activity

In other World Acceptance news, Director Darrell E. Whitaker sold 2,500 shares of the company's stock in a transaction dated Monday, June 2nd. The shares were sold at an average price of $155.73, for a total value of $389,325.00. Following the sale, the director owned 5,074 shares of the company's stock, valued at $790,174.02. This represents a 33.01% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Alice Lindsay Caulder sold 1,010 shares of the company's stock in a transaction that occurred on Wednesday, May 21st. The shares were sold at an average price of $150.00, for a total transaction of $151,500.00. Following the transaction, the senior vice president directly owned 10,315 shares in the company, valued at $1,547,250. The trade was a 8.92% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 3,560 shares of company stock worth $548,875 over the last 90 days. 41.60% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On World Acceptance

Several large investors have recently made changes to their positions in the business. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in World Acceptance during the 2nd quarter valued at $233,000. Allianz Asset Management GmbH grew its holdings in World Acceptance by 47.0% during the 2nd quarter. Allianz Asset Management GmbH now owns 3,528 shares of the credit services provider's stock valued at $583,000 after purchasing an additional 1,128 shares in the last quarter. CWM LLC grew its holdings in World Acceptance by 163.4% during the 2nd quarter. CWM LLC now owns 848 shares of the credit services provider's stock valued at $140,000 after purchasing an additional 526 shares in the last quarter. KLP Kapitalforvaltning AS grew its holdings in World Acceptance by 60.0% during the 2nd quarter. KLP Kapitalforvaltning AS now owns 800 shares of the credit services provider's stock valued at $132,000 after purchasing an additional 300 shares in the last quarter. Finally, Janney Montgomery Scott LLC bought a new position in World Acceptance during the 2nd quarter valued at $522,000. Institutional investors and hedge funds own 83.63% of the company's stock.

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.