PRA Group Inc. (PRAA) Upgraded to Hold by Zacks Investment Research
PRA Group Inc. (NASDAQ:PRAA) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued to clients and investors on Thursday.
According to Zacks, “PRA Group remains optimistic about growth given the brimming acquisition pipeline in Europe and renewed supply of non-performing loans in the U.S. It seeks to leverage its access to low cost capital, low operation costs, scale and underwriting ability in each market for growth, as well as generate long term profitability. Its strategic acquisitions and purchase of finance receivables, strong balance sheet and inorganic growth strategies remain the major positives. However, high non-cash charges and steady fall in cash collections in Americas-insolvency business raised caution for the company in recent quarters. Moreover, difficult operations in competitive accounts receivable management industry, and drop in total estimated collections per unit of purchase price ratio, with higher interest expenses remain major headwinds for PRA Group.”
Several other equities research analysts have also issued reports on the stock. William Blair restated an “outperform” rating on shares of PRA Group in a research note on Tuesday. First Analysis assumed coverage on shares of PRA Group in a research note on Tuesday, June 7th. They set an “overweight” rating for the company. Five equities research analysts have rated the stock with a hold rating and three have issued a buy rating to the company. The stock has an average rating of “Hold” and an average target price of $32.25.
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Shares of PRA Group (NASDAQ:PRAA) traded up 0.282% on Thursday, hitting $33.815. 87,405 shares of the stock traded hands. The firm has a market cap of $1.57 billion, a P/E ratio of 12.585 and a beta of 1.41. The stock has a 50-day moving average price of $30.36 and a 200 day moving average price of $28.56. PRA Group has a 52 week low of $20.00 and a 52 week high of $56.00.
PRA Group (NASDAQ:PRAA) last issued its quarterly earnings results on Monday, August 8th. The company reported $0.83 earnings per share (EPS) for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.83. PRA Group had a net margin of 13.89% and a return on equity of 19.50%. The company earned $228.50 million during the quarter, compared to analyst estimates of $227.92 million. During the same quarter last year, the business posted $1.06 EPS. PRA Group’s quarterly revenue was down 3.7% compared to the same quarter last year. Equities research analysts predict that PRA Group will post $2.96 EPS for the current fiscal year.
In related news, insider Michael J. Petit sold 3,000 shares of the firm’s stock in a transaction that occurred on Friday, July 22nd. The shares were sold at an average price of $28.11, for a total value of $84,330.00. Following the completion of the transaction, the insider now directly owns 125,157 shares of the company’s stock, valued at approximately $3,518,163.27. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Michael J. Petit sold 8,300 shares of the firm’s stock in a transaction that occurred on Tuesday, August 9th. The stock was sold at an average price of $28.93, for a total transaction of $240,119.00. Following the completion of the transaction, the insider now directly owns 116,857 shares of the company’s stock, valued at $3,380,673.01. The disclosure for this sale can be found here. 1.70% of the stock is currently owned by corporate insiders.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in PRAA. Mason Street Advisors LLC acquired a new position in PRA Group during the second quarter valued at approximately $219,000. Royal Bank of Canada increased its position in shares of PRA Group by 21.8% in the second quarter. Royal Bank of Canada now owns 901,080 shares of the company’s stock valued at $21,752,000 after buying an additional 161,570 shares during the last quarter. Lebenthal Holdings LLC increased its position in shares of PRA Group by 2.5% in the second quarter. Lebenthal Holdings LLC now owns 60,723 shares of the company’s stock valued at $1,466,000 after buying an additional 1,476 shares during the last quarter. Stifel Financial Corp purchased a new position in shares of PRA Group during the second quarter valued at approximately $809,000. Finally, Fiera Capital Corp purchased a new position in shares of PRA Group during the second quarter valued at approximately $7,212,000.
About PRA Group
PRA Group, Inc (PRA Group), formerly Portfolio Recovery Associates, Inc, is a financial and business services company with operations in the Americas and Europe. The Company is engaged in the acquisition and collection of nonperforming loans in the Americas and Europe. Its business focuses upon the acquisition, collection, and processing of both unpaid and normal-course accounts receivable originally owed to credit grantors, government entities and others.
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