NEW YORK (TheStreet) -- PRA Group (PRAA) - Get Report stock is down by 16.62% to $22.42 in mid-afternoon trading on Friday after the company reported lower-than-expected revenue during the 2015 fourth quarter.
After the market close on Thursday, the financial and business service company reported earnings of $1.03 per share, in-line with analysts' forecasts. However, revenue of $230.2 million missed Wall Street's estimates for revenue of $237.99 million.
Additionally, PRA announced that it would acquire certain assets from Recovery Management Systems, including "most RMSC employees."
RMSC provides bankruptcy services and products to the commercial and consumer credit card industry. The terms of the deal were not disclosed.
So far today, 3.38 million shares of PRA Group have traded so far today, well above the company's 30-day average of about 666,000 shares.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rates this stock as a "hold" with a ratings score of C. The company's strengths can be seen in multiple areas, such as its notable return on equity and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and poor profit margins.
You can view the full analysis from the report here: PRAA