World Acceptance (NASDAQ:WRLD) Trading Down 7.4% on Disappointing Earnings

Key Points

• Shares of World Acceptance fell 7.4% after the company reported quarterly EPS of $7.70, missing consensus of $7.74, and traded as low as $138.01 from a prior close of $153.25 on below-average volume.
• Analysts maintain a consensus Hold rating (Weiss reaffirmed a "hold (c)"), while insider John L. Calmes Jr. sold 1,000 shares; insiders own about 41.6% and institutional investors about 83.6% of the stock.
• Key metrics: market cap ≈ $704M, P/E 18.26, return on equity 10.8%, net margin 7.46%, and debt-to-equity 1.64.

World Acceptance Corporation (NASDAQ:WRLD - Get Free Report) shares fell 7.4% on Thursday following a weaker than expected earnings announcement. The company traded as low as $138.01 and last traded at $141.97. 88,626 shares were traded during mid-day trading, a decline of 32% from the average session volume of 129,940 shares. The stock had previously closed at $153.25.

The credit services provider reported $7.70 earnings per share for the quarter, missing analysts' consensus estimates of $7.74 by ($0.04). World Acceptance had a return on equity of 10.80% and a net margin of 7.46%.

Analyst Ratings Changes

Separately, Weiss Ratings reaffirmed a "hold (c)" rating on shares of World Acceptance in a research report on Friday, March 27th. Two investment analysts have rated the stock with a Hold rating, Based on data from MarketBeat, World Acceptance has a consensus rating of "Hold".

Insiders Place Their Bets

In related news, insider John L. Calmes, Jr. sold 1,000 shares of the company's stock in a transaction dated Tuesday, March 10th. The shares were sold at an average price of $141.88, for a total value of $141,880.00. Following the sale, the insider owned 50,334 shares of the company's stock, valued at $7,141,387.92. The trade was a 1.95% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 41.60% of the stock is currently owned by insiders.

Institutional Trading of World Acceptance

Large investors have recently added to or reduced their stakes in the company. Intech Investment Management LLC grew its stake in World Acceptance by 677.8% during the third quarter. Intech Investment Management LLC now owns 11,582 shares of the credit services provider's stock worth $1,959,000 after buying an additional 10,093 shares during the last quarter. WINTON GROUP Ltd grew its stake in World Acceptance by 138.1% during the third quarter. WINTON GROUP Ltd now owns 20,241 shares of the credit services provider's stock worth $3,424,000 after buying an additional 11,741 shares during the last quarter. CX Institutional bought a new stake in World Acceptance during the third quarter worth about $6,258,000. American Century Companies Inc. grew its stake in World Acceptance by 14.2% during the third quarter. American Century Companies Inc. now owns 85,622 shares of the credit services provider's stock worth $14,482,000 after buying an additional 10,649 shares during the last quarter. Finally, Empirical Financial Services LLC d.b.a. Empirical Wealth Management bought a new stake in World Acceptance during the third quarter worth about $948,000. 83.63% of the stock is owned by institutional investors.

World Acceptance Price Performance

The company has a debt-to-equity ratio of 1.64, a current ratio of 25.01 and a quick ratio of 25.01. The stock has a market capitalization of $704.04 million, a P/E ratio of 18.26 and a beta of 1.17. The company's 50 day simple moving average is $139.59 and its two-hundred day simple moving average is $141.21.

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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