World Acceptance (NASDAQ:WRLD) Shares Gap Down on Disappointing Earnings

World Acceptance Corporation (NASDAQ:WRLD)’s share price gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $142.58, but opened at $126.50. World Acceptance shares last traded at $114.5820, with a volume of 33,735 shares trading hands.

The credit services provider reported ($0.19) earnings per share for the quarter, missing analysts’ consensus estimates of $0.58 by ($0.77). World Acceptance had a net margin of 10.00% and a return on equity of 13.65%.

Analysts Set New Price Targets

A number of equities research analysts have commented on the stock. Weiss Ratings reaffirmed a “hold (c)” rating on shares of World Acceptance in a research report on Monday, December 29th. Zacks Research upgraded shares of World Acceptance from a “strong sell” rating to a “hold” rating in a research note on Monday, December 22nd. Two investment analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the stock presently has a consensus rating of “Hold”.

Insiders Place Their Bets

In related news, insider John L. Calmes, Jr. sold 1,000 shares of the company’s stock in a transaction on Wednesday, December 17th. The stock was sold at an average price of $149.21, for a total value of $149,210.00. Following the transaction, the insider directly owned 54,395 shares of the company’s stock, valued at $8,116,277.95. This represents a 1.81% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Daniel Clinton Dyer sold 8,857 shares of the stock in a transaction that occurred on Tuesday, December 16th. The stock was sold at an average price of $149.00, for a total transaction of $1,319,693.00. Following the completion of the transaction, the insider owned 33,640 shares in the company, valued at approximately $5,012,360. This trade represents a 20.84% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 9,946 shares of company stock valued at $1,482,253. 41.60% of the stock is owned by company insiders.

Hedge Funds Weigh In On World Acceptance

Large investors have recently added to or reduced their stakes in the stock. American Century Companies Inc. grew its holdings in shares of World Acceptance by 14.2% during the third quarter. American Century Companies Inc. now owns 85,622 shares of the credit services provider’s stock worth $14,482,000 after buying an additional 10,649 shares in the last quarter. Geode Capital Management LLC raised its holdings in World Acceptance by 6.1% in the 2nd quarter. Geode Capital Management LLC now owns 84,846 shares of the credit services provider’s stock valued at $14,011,000 after buying an additional 4,869 shares during the period. Bridgeway Capital Management LLC lifted its holdings in shares of World Acceptance by 9.0% in the 3rd quarter. Bridgeway Capital Management LLC now owns 63,120 shares of the credit services provider’s stock worth $10,676,000 after acquiring an additional 5,192 shares during the last quarter. Ingalls & Snyder LLC lifted its stake in World Acceptance by 0.9% during the second 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 in the last quarter. Finally, AQR Capital Management LLC lifted its stake in World Acceptance by 51.1% during the 2nd quarter. AQR Capital Management LLC now owns 41,380 shares of the credit services provider’s stock worth $6,833,000 after acquiring an additional 13,999 shares in the last quarter. 83.63% of the stock is currently owned by institutional investors and hedge funds.

World Acceptance Price Performance

The firm has a market cap of $574.82 million, a price-to-earnings ratio of 11.07 and a beta of 1.12. The company has a quick ratio of 24.16, a current ratio of 24.16 and a debt-to-equity ratio of 1.60. The company’s 50-day moving average price is $145.25 and its 200-day moving average price is $156.56.

About World Acceptance

World Acceptance Corporation (NASDAQ: WRLD) is a consumer finance company headquartered in Greenville, South Carolina. Founded in 1972, the company provides credit solutions to underserved customers who may have limited access to traditional banking services. Over the decades, World Acceptance has built a reputation for tailored lending that emphasizes responsible underwriting and personalized customer service.

The company’s core product offerings include short-term installment loans designed to meet the immediate financial needs of its clients.