Zacks Research Upgrades World Acceptance (NASDAQ:WRLD) to "Hold"

Key Points

• Zacks Research has upgraded World Acceptance (NASDAQ:WRLD) from a "strong sell" to a "hold" rating, coinciding with a similar downgrade to hold by Wall Street Zen.
• The company's recent earnings report showed a significant miss, with earnings per share at $0.25 compared to a consensus estimate of $2.44, although revenue surpassed expectations at $132.45 million.
• Insider trading activity has increased, with significant stock sales by insiders, indicating potential shifts in confidence among company executives, as they sold a combined 4,704 shares and 3,389 shares in recent transactions.

World Acceptance (NASDAQ:WRLD - Get Free Report) was upgraded by investment analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a report issued on Monday,Zacks.com reports.

Separately, Wall Street Zen lowered World Acceptance from a "strong-buy" rating to a "hold" rating in a research note on Saturday, July 26th. Two analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $10.00.

World Acceptance Trading Down 0.4%

NASDAQ:WRLD opened at $175.41 on Monday. World Acceptance has a 1-year low of $104.99 and a 1-year high of $178.41. The business's 50-day moving average price is $166.94 and its two-hundred day moving average price is $150.99. The company has a current ratio of 17.83, a quick ratio of 17.83 and a debt-to-equity ratio of 1.10. The firm has a market capitalization of $955.98 million, a price-to-earnings ratio of 11.84 and a beta of 1.28.

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

Insider Transactions at World Acceptance

In other World Acceptance news, insider Daniel Clinton Dyer sold 4,704 shares of the firm's stock in a transaction that occurred on Wednesday, July 30th. The stock was sold at an average price of $159.50, for a total value of $750,288.00. Following the completion of the transaction, the insider directly owned 42,714 shares in the company, valued at $6,812,883. This trade represents a 9.92% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Ken R. Bramlett, Jr. sold 3,389 shares of the firm's stock in a transaction that occurred on Wednesday, September 10th. The shares were sold at an average price of $167.19, for a total value of $566,606.91. Following the completion of the transaction, the director owned 32,205 shares of the company's stock, valued at approximately $5,384,353.95. This represents a 9.52% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 356,559 shares of company stock valued at $61,548,969. 41.60% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. boosted its stake in shares of World Acceptance by 2.2% during the 1st quarter. Vanguard Group Inc. now owns 349,238 shares of the credit services provider's stock worth $44,196,000 after acquiring an additional 7,429 shares during the period. Geode Capital Management LLC lifted its holdings in World Acceptance by 6.1% during the 2nd quarter. Geode Capital Management LLC now owns 84,846 shares of the credit services provider's stock worth $14,011,000 after purchasing an additional 4,869 shares during the last quarter. American Century Companies Inc. lifted its holdings in World Acceptance by 20.9% during the 2nd quarter. American Century Companies Inc. now owns 74,973 shares of the credit services provider's stock worth $12,380,000 after purchasing an additional 12,954 shares during the last quarter. Bridgeway Capital Management LLC lifted its holdings in World Acceptance by 33.1% during the 2nd quarter. Bridgeway Capital Management LLC now owns 57,928 shares of the credit services provider's stock worth $9,565,000 after purchasing an additional 14,406 shares during the last quarter. Finally, Ingalls & Snyder LLC lifted its holdings in World Acceptance by 0.9% during the 2nd quarter. Ingalls & Snyder LLC now owns 53,171 shares of the credit services provider's stock worth $8,780,000 after purchasing an additional 495 shares during the last quarter. 83.63% of the stock is currently owned by institutional investors.

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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