PRA Group, Inc. (PRAA) Raised to Hold at Zacks Investment Research
Zacks Investment Research upgraded shares of PRA Group, Inc. (NASDAQ:PRAA) from a strong sell rating to a hold rating in a research note issued to investors on Tuesday morning.
According to Zacks, “PRA Group’s shares have outperformed the industry in last three months. Continued favorable performance of the fee-for-service business instills optimism. Several strategic acquisitions and alliances positioned the company well for long term growth. The company’s financial health also impresses. The company has seen the Zacks Consensus Estimate for 2017 and 2018 earnings being revised upward in last 30 days. However, its rising level of expenses continues to weigh on the bottom line. Rising level of interest expenses has also been putting pressure on the company's profitability. PRA Group is also witnessing softness in its Receivable Income & Cash Collection businesses that continue to affect its underwriting results. The company’s third-quarter 2017 earnings surpassed the Zacks Consensus Estimate but declined from the year-ago quarter due to lower revenues.”
Several other research firms have also weighed in on PRAA. BidaskClub lowered PRA Group from a buy rating to a hold rating in a research report on Friday, August 18th. Raymond James Financial, Inc. reissued an underperform rating on shares of PRA Group in a research report on Thursday, September 21st. Janney Montgomery Scott lowered PRA Group from a neutral rating to a sell rating in a research report on Wednesday, October 4th. Citigroup Inc. lowered PRA Group to an underperform rating in a research report on Thursday, September 21st. Finally, Keefe, Bruyette & Woods lowered PRA Group from an outperform rating to a market perform rating and lifted their price objective for the stock from $36.00 to $40.00 in a research report on Tuesday, October 10th. Two investment analysts have rated the stock with a sell rating and four have issued a hold rating to the stock. The company currently has a consensus rating of Hold and a consensus target price of $40.00.
PRA Group (NASDAQ:PRAA) last posted its quarterly earnings data on Wednesday, November 8th. The business services provider reported $0.34 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.38 by ($0.04). PRA Group had a return on equity of 2.98% and a net margin of 7.57%. The business had revenue of $201.00 million during the quarter, compared to the consensus estimate of $196.96 million. During the same period last year, the business posted $0.68 earnings per share. The business’s revenue was down 9.5% on a year-over-year basis. equities research analysts predict that PRA Group will post 1.38 EPS for the current year.
A number of institutional investors have recently modified their holdings of the stock. Amalgamated Bank increased its position in PRA Group by 2.5% in the 2nd quarter. Amalgamated Bank now owns 6,393 shares of the business services provider’s stock valued at $242,000 after buying an additional 154 shares in the last quarter. Huntington National Bank increased its position in PRA Group by 5.5% in the 2nd quarter. Huntington National Bank now owns 3,084 shares of the business services provider’s stock valued at $117,000 after buying an additional 162 shares in the last quarter. Advisor Group Inc. increased its position in PRA Group by 3.5% in the 2nd quarter. Advisor Group Inc. now owns 5,829 shares of the business services provider’s stock valued at $221,000 after buying an additional 196 shares in the last quarter. Texas Permanent School Fund increased its position in PRA Group by 0.8% in the 2nd quarter. Texas Permanent School Fund now owns 33,836 shares of the business services provider’s stock valued at $1,282,000 after buying an additional 283 shares in the last quarter. Finally, Zurcher Kantonalbank Zurich Cantonalbank increased its position in PRA Group by 12.0% in the 2nd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 2,829 shares of the business services provider’s stock valued at $107,000 after buying an additional 304 shares in the last quarter.
About PRA Group
PRA Group, Inc (PRA Group) is a financial and business services company with operations in the Americas and Europe. The Company’s primary business is the purchase, collection and management of portfolios of nonperforming loans. The Company operates through the account receivables management segment. It also provides fee-based services, such as vehicle location, skip tracing and collateral recovery for auto lenders, government entities and law enforcement; revenue administration, audit and revenue discovery/recovery services for local government entities; class action claims recovery services and purchases; servicing of consumer bankruptcy accounts in the United States, and contingent collections of nonperforming loans in Europe and South America.
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