World Acceptance (NASDAQ:WRLD) Trading Down 5.8% on Disappointing Earnings

Key Points

• World Acceptance Corporation's stock dropped 5.8% after the company reported disappointing earnings, with earnings per share of ($0.38) missing expectations significantly.
• Despite a revenue of $134.47 million, which exceeded estimates, the company has received downgrades from several analysts, including a shift from a "strong-buy" to a "hold" rating.
• Insider transactions show significant selling activity, with SVP Alice Lindsay Caulder selling 1,000 shares and reductions in ownership reported by other executives.

World Acceptance Corporation (NASDAQ:WRLD - Get Free Report) traded down 5.8% during mid-day trading on Friday following a dissappointing earnings announcement. The company traded as low as $150.41 and last traded at $145.95. 7,595 shares changed hands during mid-day trading, a decline of 81% from the average session volume of 40,378 shares. The stock had previously closed at $155.00.

The credit services provider reported ($0.38) earnings per share for the quarter, missing analysts' consensus estimates of $1.87 by ($2.25). The business had revenue of $134.47 million during the quarter, compared to the consensus estimate of $127.85 million. World Acceptance had a net margin of 14.29% and a return on equity of 18.95%.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on WRLD shares. Wall Street Zen downgraded World Acceptance from a "strong-buy" rating to a "hold" rating in a research report on Saturday, July 26th. Weiss Ratings reissued a "buy (b-)" rating on shares of World Acceptance in a research note on Friday. Finally, Zacks Research raised World Acceptance from a "strong sell" rating to a "hold" rating in a research note on Monday, September 22nd. One equities research analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $10.00.

Insider Buying and Selling at World Acceptance

In related news, SVP Alice Lindsay Caulder sold 1,000 shares of the company's stock in a transaction dated Wednesday, September 17th. The stock was sold at an average price of $167.33, for a total transaction of $167,330.00. Following the sale, the senior vice president owned 16,515 shares in the company, valued at approximately $2,763,454.95. This represents a 5.71% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Charles D. Way sold 402 shares of the company'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 sale, the director owned 15,395 shares in the company, valued at $2,463,200. The trade was a 2.54% 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 valued at $61,548,969 in the last ninety days. Insiders own 41.60% of the company's stock.

Institutional Trading of World Acceptance

Institutional investors and hedge funds have recently bought and sold shares of the business. GAMMA Investing LLC raised its stake in World Acceptance by 570.9% in the first quarter. GAMMA Investing LLC now owns 369 shares of the credit services provider's stock valued at $47,000 after buying an additional 314 shares during the period. Tower Research Capital LLC TRC lifted its holdings in shares of World Acceptance by 103.2% during the second quarter. Tower Research Capital LLC TRC now owns 569 shares of the credit services provider's stock worth $94,000 after buying an additional 289 shares in the last quarter. KLP Kapitalforvaltning AS lifted its holdings in shares of World Acceptance by 60.0% during the second quarter. KLP Kapitalforvaltning AS now owns 800 shares of the credit services provider's stock worth $132,000 after buying an additional 300 shares in the last quarter. Russell Investments Group Ltd. lifted its holdings in shares of World Acceptance by 876.2% during the first quarter. Russell Investments Group Ltd. now owns 820 shares of the credit services provider's stock worth $104,000 after buying an additional 736 shares in the last quarter. Finally, CWM LLC grew its position in World Acceptance by 163.4% during the second quarter. CWM LLC now owns 848 shares of the credit services provider's stock worth $140,000 after buying an additional 526 shares in the last quarter. Institutional investors own 83.63% of the company's stock.

World Acceptance Stock Performance

The stock has a fifty day simple moving average of $172.19 and a two-hundred day simple moving average of $158.47. The stock has a market cap of $806.14 million, a price-to-earnings ratio of 10.00 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.

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.

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