PRA Group (PRAA) Showing Signs Of A Dead Cat Bounce Today
Trade-Ideas LLC identified
(
) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified PRA Group as such a stock due to the following factors:
- PRAA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $64.0 million.
- PRAA has traded 123,946 shares today.
- PRAA is up 3.8% today.
- PRAA was down 13.8% yesterday.
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More details on PRAA:
PRA Group, Inc., a financial and business service company, engages in the purchase, collection, and management of portfolios of defaulted consumer receivables in North America and Europe. PRAA has a PE ratio of 11. Currently there are 4 analysts that rate PRA Group a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for PRA Group has been 597,100 shares per day over the past 30 days. PRA Group has a market cap of $1.8 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.78 and a short float of 32% with 7.14 days to cover. Shares are down 43.9% year-to-date as of the close of trading on Friday.
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Analysis:
rates PRA Group as a
. The company's strengths can be seen in multiple areas, such as its notable return on equity, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Consumer Finance industry and the overall market, PRA GROUP INC's return on equity exceeds that of both the industry average and the S&P 500.
- PRA GROUP INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PRA GROUP INC increased its bottom line by earning $3.49 versus $3.45 in the prior year. This year, the market expects an improvement in earnings ($4.28 versus $3.49).
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 4.2%. Since the same quarter one year prior, revenues slightly dropped by 4.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Despite the current debt-to-equity ratio of 1.92, it is still below the industry average, suggesting that this level of debt is acceptable within the Consumer Finance industry.
- You can view the full PRA Group Ratings Report.
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