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 $19.7 million.
- PRAA has traded 51,284 shares today.
- PRAA is up 5.1% today.
- PRAA was down 15.8% 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 8. Currently there are 5 analysts that rate PRA Group a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for PRA Group has been 663,700 shares per day over the past 30 days. PRA Group has a market cap of $1.3 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.18 and a short float of 23.1% with 11.91 days to cover. Shares are down 34.8% year-to-date as of the close of trading on Friday.
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rates PRA Group as a
. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and feeble growth in the company's earnings per share.
Highlights from the ratings report include:
- PRAA, with its decline in revenue, slightly underperformed the industry average of 7.9%. Since the same quarter one year prior, revenues slightly dropped by 8.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- PRA GROUP INC's earnings per share declined by 7.5% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, PRA GROUP INC reported lower earnings of $3.47 versus $3.49 in the prior year. This year, the market expects an improvement in earnings ($4.61 versus $3.47).
- The change in net income from the same quarter one year ago has exceeded that of the Consumer Finance industry average, but is less than that of the S&P 500. The net income has decreased by 12.8% when compared to the same quarter one year ago, dropping from $46.99 million to $40.97 million.
- Looking at the price performance of PRAA's shares over the past 12 months, there is not much good news to report: the stock is down 50.52%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- You can view the full PRA Group Ratings Report.