PRA Group (NASDAQ:PRAA) Shares Gap Up Following Strong Earnings

PRA Group, Inc. (NASDAQ:PRAA - Get Free Report)'s stock price gapped up prior to trading on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $20.56, but opened at $22.20. PRA Group shares last traded at $22.52, with a volume of 79,270 shares traded.

The business services provider reported $0.69 EPS for the quarter, topping analysts' consensus estimates of $0.32 by $0.37. PRA Group had a return on equity of 0.33% and a net margin of 0.40%. The company had revenue of $281.48 million for the quarter, compared to analysts' expectations of $262.20 million. During the same quarter in the previous year, the firm posted ($0.31) earnings per share. The firm's quarterly revenue was up 30.1% on a year-over-year basis.

Analyst Upgrades and Downgrades

PRAA has been the subject of several recent research reports. Truist Financial increased their price objective on shares of PRA Group from $28.00 to $31.00 and gave the company a "buy" rating in a research report on Tuesday. StockNews.com raised shares of PRA Group from a "hold" rating to a "buy" rating in a report on Wednesday, October 16th.

Insider Activity at PRA Group

In related news, Director Geir Olsen purchased 11,750 shares of the company's stock in a transaction that occurred on Wednesday, August 7th. The stock was acquired at an average price of $21.39 per share, for a total transaction of $251,332.50. Following the completion of the purchase, the director now owns 11,750 shares in the company, valued at approximately $251,332.50. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 2.00% of the stock is currently owned by company insiders.

Institutional Trading of PRA Group

Several hedge funds and other institutional investors have recently bought and sold shares of PRAA. Point72 Asia Singapore Pte. Ltd. acquired a new position in shares of PRA Group in the 2nd quarter worth approximately $29,000. nVerses Capital LLC lifted its stake in PRA Group by 700.0% during the second quarter. nVerses Capital LLC now owns 1,600 shares of the business services provider's stock worth $31,000 after purchasing an additional 1,400 shares during the last quarter. Innealta Capital LLC bought a new position in PRA Group during the second quarter worth $57,000. SG Americas Securities LLC acquired a new position in PRA Group in the first quarter worth $103,000. Finally, Quest Partners LLC increased its stake in PRA Group by 14.2% during the second quarter. Quest Partners LLC now owns 10,179 shares of the business services provider's stock valued at $200,000 after purchasing an additional 1,267 shares during the last quarter. 97.22% of the stock is owned by institutional investors.

PRA Group Price Performance

The stock's fifty day simple moving average is $21.34 and its two-hundred day simple moving average is $22.03. The company has a market capitalization of $939.38 million, a price-to-earnings ratio of 238.32 and a beta of 1.50.

About PRA Group

PRA Group, Inc, a financial and business services company, engages in the purchase, collection, and management of portfolios of nonperforming loans worldwide. It is involved in the purchase of accounts that are primarily the unpaid obligations of individuals owed to credit originators, which include banks and other types of consumer, retail, and auto finance companies.