PRA Group (NASDAQ:PRAA) Shares Gap Down – Should You Sell?

PRA Group, Inc. (NASDAQ:PRAA) gapped down before the market opened on Wednesday. The stock had previously closed at $20.05, but opened at $19.33. PRA Group shares last traded at $19.4250, with a volume of 19,714 shares trading hands.

PRA Group News Roundup

Here are the key news stories impacting PRA Group this week:

• Positive Sentiment: PRA Group priced a $400 million offering of 8.500% senior notes due 2033. The proceeds are expected to help repay borrowings under its revolving credit facility, extending maturities and reducing near-term refinancing and floating-rate risk. PRA Group Announces Pricing of Offering of $400.0 Million of 8.500% Senior Notes due 2033
• Positive Sentiment: An investment analysis rated PRAA a “Buy,” citing resilient credit collections—particularly in Europe—disciplined loan purchases, improving nonperforming-loan pricing and a substantial discount to book value. The analysis also noted leverage of approximately 2.7x and strong labor markets that could support future cash recoveries. PRA Group: Outsized Discount to Book Value Given Resilient Recoveries
• Neutral Sentiment: Sell-side brokerages assigned PRA Group a “Hold” rating, indicating that some analysts remain cautious despite the recent operational and financing improvements. PRA Group Stock Now Rated Hold by Sell-Side Brokerages
• Negative Sentiment: The new notes carry an 8.500% coupon, which is expensive and could keep interest costs elevated. Investors may therefore weigh the benefits of longer maturities and improved liquidity against the potential pressure on earnings and cash flow from higher financing costs. PRA Group Announces Pricing of Offering of $400 Million of 8.500% Senior Notes Due 2033

Wall Street Analyst Weigh In

PRAA has been the topic of several recent research reports. Zacks Research raised PRA Group from a “hold” rating to a “strong-buy” rating in a research note on Monday, August 10th. Wall Street Zen raised shares of PRA Group from a “buy” rating to a “strong-buy” rating in a report on Saturday. Finally, Weiss Ratings restated a “sell (d)” rating on shares of PRA Group in a report on Monday, September 21st. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $26.00.

PRA Group Price Performance

The business has a 50-day moving average of $19.06 and a two-hundred day moving average of $18.13. The company has a market cap of $726.27 million, a P/E ratio of -2.87 and a beta of 1.11.

PRA Group (NASDAQ:PRAA) last issued its quarterly earnings data on Thursday, August 6th. The business services provider reported $1.51 EPS for the quarter, beating the consensus estimate of $0.52 by $0.99. The firm had revenue of $372.17 million during the quarter, compared to analyst estimates of $299.99 million. PRA Group had a positive return on equity of 15.56% and a negative net margin of 19.91%. Equities analysts anticipate that PRA Group, Inc. will post 3.93 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of PRAA. EverSource Wealth Advisors LLC grew its position in shares of PRA Group by 145.6% during the 4th quarter. EverSource Wealth Advisors LLC now owns 2,481 shares of the business services provider’s stock valued at $44,000 after acquiring an additional 1,471 shares during the period. Meeder Asset Management Inc. purchased a new position in PRA Group during the second quarter worth about $49,000. Fifth Third Bancorp lifted its stake in PRA Group by 7,735.7% during the 1st quarter. Fifth Third Bancorp now owns 9,011 shares of the business services provider’s stock worth $158,000 after acquiring an additional 8,896 shares in the last quarter. The Manufacturers Life Insurance Company acquired a new position in shares of PRA Group in the second quarter worth $192,000. Finally, Globeflex Capital L P purchased a new stake in shares of PRA Group in the 2nd quarter valued at approximately $208,000. 97.22% of the stock is owned by institutional investors and hedge funds.

About PRA Group

PRA Group, Inc is a global financial services company that purchases portfolios of accounts receivable from banks, credit unions, consumer finance companies and other creditors. These portfolios generally consist of nonperforming or distressed consumer accounts, including unpaid credit card balances, personal loans and other forms of unsecured debt.

After acquiring receivables, PRA Group works directly with consumers to establish repayment arrangements and resolve outstanding obligations.