PRA Group, Inc. $PRAA Shares Sold by AlphaQuest LLC

PRA Group, Inc. (PRAA) experienced notable institutional investor movements, with AlphaQuest LLC decreasing its stake by 55.3%, while other major firms like Principal Financial Group and Capital Management Corp VA significantly increased their holdings, contributing to 97.22% institutional ownership. Analyst sentiment is mixed but averages a "Moderate Buy" rating with a consensus price target of $25.00. The company recently reported Q3 earnings of $0.53 per share, exceeding analyst estimates, though revenue of $247.08 million missed expectations, with the stock currently trading around $13.56 at a P/E ratio of 5.82.

Analysis

AlphaQuest LLC significantly reduced its PRA Group (PRAA) position by 55.3%, selling 6,095 shares, valuing its remaining holdings at $73,000. Conversely, Principal Financial Group (+2.7%), Envestnet Asset Management Inc. (+3.3%), and Capital Management Corp VA (+58.5%) increased their stakes, alongside new positions from Y Intercept Hong Kong Ltd and Universal Beteiligungs und Servicegesellschaft mbH. This mixed institutional activity contributes to a substantial 97.22% institutional ownership, indicating varied professional interest.

Analyst sentiment for PRAA is mixed, ranging from a "sell (d+)" from Weiss Ratings to "buy" and "outperform" from Truist Financial, JMP Securities, and Citigroup. The consensus rating is a "Moderate Buy" with an average price target of $25.00, significantly above the current $13.56 trading price. Truist Financial recently cut its target from $33.00 to $26.00, suggesting some re-evaluation of future potential.

PRA Group reported Q3 EPS of $0.53, exceeding consensus estimates of $0.50, but revenue of $247.08 million fell short of expectations ($295.77 million). The company trades at a P/E ratio of 5.82 and has a market capitalization of $529.84 million, with a beta of 1.41. The stock's current price of $13.56 is below its 50-day ($15.32) and 200-day ($15.49) moving averages, near its 1-year low of $12.29.

Key Decisions for Investors

• Monitor future revenue trends closely given the recent miss despite an EPS beat, as this could impact long-term growth prospects.
• Evaluate the stock's current valuation (P/E of 5.82) against the mixed analyst sentiment and the consensus price target of $25.00 to assess potential upside or downside.
• Consider the implications of high institutional ownership (97.22%) and the stock's beta of 1.41, which suggests higher volatility, when adjusting portfolio allocations.