World Acceptance (NASDAQ:WRLD) Trading Up 15% Following Strong Earnings

Key Points

• World Acceptance shares jumped 15% after the company reported quarterly earnings well above expectations, with EPS of $2.12 versus the $0.58 consensus estimate. The stock traded as high as $198.99 and was last around $208.20.
• Analyst sentiment remains cautious, as recent brokerage updates included a downgrade from Wall Street Zen to hold and a reaffirmed hold rating from Weiss Ratings. MarketBeat’s data shows an overall average rating of Hold.
• Insider selling and heavy institutional ownership were also noted, including recent sales by Director Charles D. Way and insider Luke J. Umstetter. Hedge funds and other institutions currently own 83.63% of the stock.

World Acceptance Corporation (NASDAQ:WRLD - Get Free Report) shares rose 15% on Friday after the company announced better than expected quarterly earnings. The stock traded as high as $198.99 and last traded at $208.1960. Approximately 15,948 shares changed hands during mid-day trading, a decline of 88% from the average session volume of 134,016 shares. The stock had previously closed at $181.08.

The credit services provider reported $2.12 EPS for the quarter, beating the consensus estimate of $0.58 by $1.54. World Acceptance had a net margin of 5.98% and a return on equity of 9.36%.

Analysts Set New Price Targets

A number of brokerages have recently commented on WRLD. Wall Street Zen cut shares of World Acceptance from a "buy" rating to a "hold" rating in a report on Sunday, June 28th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of World Acceptance in a research note on Wednesday, June 24th. Two research analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the stock currently has an average rating of "Hold".

Insider Activity

In related news, Director Charles D. Way sold 833 shares of the stock in a transaction dated Tuesday, June 30th. The shares were sold at an average price of $225.00, for a total transaction of $187,425.00. Following the completion of the transaction, the director directly owned 12,729 shares of the company's stock, valued at $2,864,025. This represents a 6.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Luke J. Umstetter sold 1,000 shares of the firm's stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $181.66, for a total transaction of $181,660.00. Following the completion of the sale, the insider owned 28,245 shares of the company's stock, valued at approximately $5,130,986.70. The trade was a 3.42% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 5,576 shares of company stock worth $1,149,890 over the last quarter. Insiders own 41.60% of the company's stock.

Institutional Trading of World Acceptance

A number of institutional investors have recently modified their holdings of the business. iSAM Funds UK Ltd purchased a new stake in shares of World Acceptance during the 3rd quarter worth $30,000. EverSource Wealth Advisors LLC raised its position in shares of World Acceptance by 102.4% during the 1st quarter. EverSource Wealth Advisors LLC now owns 255 shares of the credit services provider's stock worth $34,000 after purchasing an additional 129 shares during the last quarter. Russell Investments Group Ltd. lifted its position 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 valued at $56,000 after acquiring an additional 234 shares in the last quarter. GAMMA Investing LLC lifted its holdings in World Acceptance by 15.4% in the 2nd quarter. GAMMA Investing LLC now owns 548 shares of the credit services provider's stock valued at $123,000 after purchasing an additional 73 shares in the last quarter. Finally, Tower Research Capital LLC TRC lifted its stake 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 valued at $94,000 after buying an additional 289 shares during the period. 83.63% of the stock is currently owned by hedge funds and other institutional investors.

World Acceptance Price Performance

The stock has a market capitalization of $980.15 million, a price-to-earnings ratio of 28.27 and a beta of 1.13. The company has a quick ratio of 22.99, a current ratio of 22.99 and a debt-to-equity ratio of 1.26. The company has a 50 day moving average of $182.26 and a 200 day moving average of $153.63.

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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