Is PRA Stock a Good Investment?

PRA Investment Advice

PRAA

To provide specific investment advice or recommendations on PRA Group stock, we recommend investors consider the following general factors when evaluating PRA Group. This will help you to make an informed decision on whether to include PRA in one of your diversified portfolios:

Examine PRA's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research PRA's leadership team and their track record. Good management can help PRA navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Consumer Finance space and any emerging trends that could impact PRA's business and its evolving consumer preferences.
Compare PRA's performance and market position to its competitors. Analyze how PRA is positioned in terms of product offerings, innovation, and market share.
Check if PRA pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about PRA's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in PRA Group stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if PRA Group is a good investment.

Sell

Buy

Strong Sell

Our advice module complements current analysts and expert consensus on PRA Group. It analyzes the company potential to grow using all fundamental, technical, and market related data available now. To make sure PRA Group is not overpriced, please check all PRA Group fundamentals, including its current valuation, price to book, cash and equivalents, as well as the relationship between the shares owned by institutions and gross profit . Given that PRA Group has a price to earning of 10.40 X, we recommend you to check out PRA market performance and probability of bankruptcy to ensure the company can sustain itself next year given your latest risk tolerance and investing horizon.

Market Performance	Insignificant	Details
Volatility	Not too volatile	Details
Hype Condition	Stale	Details
Current Valuation	Overvalued	Details
Odds Of Distress	Below Average	Details
Economic Sensitivity	Responds to the market	Details
Investor Sentiment	Interested	Details
Analyst Consensus	Buy	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unavailable	Details

Examine PRA Stock

Researching PRA's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 97.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 0.82. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. PRA Group recorded a loss per share of 2.13. The entity last dividend was issued on the 7th of May 2007. The firm had 3:1 split on the 2nd of August 2013.

To determine if PRA is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding PRA's research are outlined below:

	PRA Group had very high historical volatility over the last 90 days
	The company reported the previous year's revenue of 825.71 M. Net Loss for the year was (83.48 M) with profit before overhead, payroll, taxes, and interest of 966.52 M.
	PRA Group currently holds about 89.58 M in cash with (97.53 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.3.
	Over 97.0% of the company shares are owned by institutional investors
	Latest headline from news.google.com: 19600 Shares in PRA Group, Inc. Acquired by Louisiana State Employees Retirement System - Defense World

PRA Quarterly Liabilities And Stockholders Equity

4.53 Billion

PRA uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in PRA Group. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to PRA's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	15th of February 2024 Upcoming Quarterly Report	View
	13th of May 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	15th of February 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	31st of December 2022 Last Financial Announcement	View

Earnings surprises can significantly impact PRA's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises PRA's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2003-07-30	2003-06-30	0.1	0.11	0.01	10
2003-02-10	2002-12-31	0.07	0.08	0.01	14
2003-04-23	2003-03-31	0.08	0.1	0.02	25
2010-02-11	2009-12-31	0.24	0.27	0.03	12
2009-04-28	2009-03-31	0.25	0.22	-0.03	12
2023-08-07	2023-06-30	-0.14	-0.1	0.04	28
2018-02-27	2017-12-31	0.34	0.3	-0.04	11
2009-10-29	2009-09-30	0.26	0.22	-0.04	15

Know PRA's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as PRA is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading PRA Group backward and forwards among themselves. PRA's institutional investor refers to the entity that pools money to purchase PRA's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Royce & Associates, Lp	2023-12-31	817.7 K
Charles Schwab Investment Management Inc	2023-12-31	666.4 K
Royal Bank Of Canada	2023-12-31	633.3 K
Chartwell Investment Partners, Llc	2023-12-31	484 K
Jacobs Levy Equity Management, Inc.	2023-09-30	450.2 K
Northern Trust Corp	2023-12-31	436 K
Morgan Stanley - Brokerage Accounts	2023-12-31	413.6 K
Bank Of America Corp	2023-12-31	400.9 K
D. E. Shaw & Co Lp	2023-09-30	398.9 K
Blackrock Inc	2023-12-31	6.5 M
Vanguard Group Inc	2023-12-31	4.3 M

Note, although PRA's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

PRA's market capitalization trends

The company currently falls under 'Small-Cap' category with a current market capitalization of 981.83 M. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate PRA's market, we take the total number of its shares issued and multiply it by PRA's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and those looking for more risk prefer small-cap and mid-cap equities.

Market Cap

1.71 Billion

PRA's profitablity analysis

PRA's profitability indicators refer to fundamental financial ratios that showcase PRA's ability to generate income relative to its revenue or operating costs. If, let's say, PRA is currently losing money, the management's focus should be on how to reverse that trend. However, when revenue exceeds expenses, PRA's executives or investors may be in less hurry to break that information down - which is where profitability analysis comes into play. Gaining a greater understanding of PRA's profitability requires more research than a typical breakdown of PRA's financial statements. By doing a profitability analysis, companies can identify areas needing attention, and investors can make a profitable trade.

	Last Reported	Projected for Next Year
Return On Tangible Assets	(0.02)	(0.02)
Return On Capital Employed	0.04	0.04
Return On Assets	(0.02)	(0.02)
Return On Equity	(0.07)	(0.07)

The company has Profit Margin (PM) of (0.1) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of 0.21 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.21.

Determining PRA's profitability involves analyzing its financial statements and using various financial metrics to determine if PRA is a good buy. For example, gross profit margin measures PRA's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of PRA's profitability and make more informed investment decisions.

The data published in PRA's official financial statements usually reflect PRA's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of PRA Group. For example, before you start analyzing numbers published by PRA accountants, it's critical to develop an understanding of what PRA's liquidity, profitability, and earnings quality are in the context of the Consumer Finance space in which it operates.

Please note, the presentation of PRA's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, PRA's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in PRA's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of PRA Group. Please utilize our Beneish M Score to check the likelihood of PRA's management manipulating its earnings.

Evaluate PRA's management efficiency

PRA Group has return on total asset (ROA) of 0.0152 % which means that it generated a profit of $0.0152 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.0528) %, meaning that it created substantial loss on money invested by shareholders. PRA's management efficiency ratios could be used to measure how well PRA manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Tangible Assets is expected to grow to -0.02. In addition to that, Return On Capital Employed is expected to decline to 0.04. At present, PRA's Total Assets are projected to increase significantly based on the last few years of reporting. The current year's Other Assets is expected to grow to about 3.9 B, whereas Non Current Assets Total are forecasted to decline to about 413.8 M.

	Last Reported	Projected for Next Year
Book Value Per Share	29.79	31.28
Net Current Asset Value	0.00	0.00
Tangible Asset Value	0.00	0.00
Tangible Book Value Per Share	20.62	21.65
Enterprise Value Over EBITDA	29.90	31.40
Price Book Value Ratio	0.88	0.84
Enterprise Value Multiple	29.90	31.40
Price Fair Value	0.88	0.84
Enterprise Value	1.9 B	2 B

The analysis of PRA's management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze PRA's future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of PRA Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.

Beta

1.46

Basic technical analysis of PRA Stock

As of the 5th of May, PRA owns the semi deviation of 3.06, and Market Risk Adjusted Performance of 0.0859. In relation to fundamental indicators, the technical analysis model allows you to check practical technical drivers of PRA Group, as well as the relationship between them. Strictly speaking, you can use this information to find out if the company will indeed mirror its model of historical prices and volume patterns, or the prices will eventually revert. We were able to analyze nineteen technical drivers for PRA, which can be compared to its peers in the sector. Please check PRA Group downside deviation, treynor ratio, expected short fall, as well as the relationship between the variance and potential upside to decide if PRA Group is priced fairly, providing market reflects its prevailing price of 24.95 per share. Given that PRA Group has jensen alpha of 0.0157, we recommend you to check out PRA's latest market performance to make sure the company can sustain itself at some point in the future.

PRA's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific PRA insiders, such as employees or executives, is commonly permitted as long as it does not rely on PRA's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases PRA insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

		Geir Olsen over three weeks ago Discretionary transaction by Geir Olsen of tradable shares of PRA subject to Rule 16b-3
		Marino Glenn P over a month ago Disposition of tradable shares by Marino Glenn P of PRA subject to Rule 16b-3
		Vikram Atal over a month ago Acquisition by Vikram Atal of 94824 shares of PRA subject to Rule 16b-3
		Laura White over six months ago Acquisition by Laura White of 9967 shares of PRA subject to Rule 16b-3
		Laura White over a year ago Acquisition by Laura White of 10851 shares of PRA subject to Rule 16b-3

PRA's Outstanding Corporate Bonds

PRA issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. PRA Group uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most PRA bonds can be classified according to their maturity, which is the date when PRA Group has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	US69354NAD84 Corp Bond US69354NAD84	View
	PRAA 8375 01 FEB 28 Corp Bond US69354NAE67	View
	PRA GROUP INC Corp Bond US69354NAC02	View

View All PRA Corporate Bonds

Understand PRA's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing PRA's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.0442
	Market Risk Adjusted Performance	0.0859
	Mean Deviation	2.39
	Semi Deviation	3.06
	Downside Deviation	3.2
	Coefficient Of Variation	1753.33
	Standard Deviation	3.42
	Variance	11.7
	Information Ratio	0.0338
	Jensen Alpha	0.0157
	Total Risk Alpha	(0.19)
	Sortino Ratio	0.0361
	Treynor Ratio	0.0759
	Maximum Drawdown	21.02
	Value At Risk	(4.24)
	Potential Upside	5.93
	Downside Variance	10.24
	Semi Variance	9.36
	Expected Short fall	(2.38)
	Skewness	0.9688
	Kurtosis	3.67

	Risk Adjusted Performance	0.0442
	Market Risk Adjusted Performance	0.0859
	Mean Deviation	2.39
	Semi Deviation	3.06
	Downside Deviation	3.2
	Coefficient Of Variation	1753.33
	Standard Deviation	3.42
	Variance	11.7
	Information Ratio	0.0338
	Jensen Alpha	0.0157
	Total Risk Alpha	(0.19)
	Sortino Ratio	0.0361
	Treynor Ratio	0.0759
	Maximum Drawdown	21.02
	Value At Risk	(4.24)
	Potential Upside	5.93
	Downside Variance	10.24
	Semi Variance	9.36
	Expected Short fall	(2.38)
	Skewness	0.9688
	Kurtosis	3.67

Consider PRA's intraday indicators

PRA intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of PRA stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	0.0309
	Daily Balance Of Power	0.3038
	Rate Of Daily Change	1.01
	Day Median Price	25.2
	Day Typical Price	25.11
	Market Facilitation Index	0.79
	Price Action Indicator	(0.13)
	Period Momentum Indicator	0.24

PRA Corporate Filings

	30th of April 2024 Other Reports	View Verify
	29th of April 2024 Other Reports	View Verify
F4	17th of April 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities	View Verify
F3	19th of March 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock	View Verify

PRA time-series forecasting models is one of many PRA's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary PRA's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

PRA Stock media impact

Far too much social signal, news, headlines, and media speculation about PRA that are available to investors today. That information is available publicly through PRA media outlets and privately through word of mouth or via PRA internal channels. However, regardless of the origin, that massive amount of PRA data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of PRA news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of PRA relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to PRA's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive PRA alpha.

PRA Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards PRA can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

PRA Maximum Pain Price across 2024-05-17 Option Contracts

PRA's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of PRA close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of PRA's options.

Be your own money manager

Our tools can tell you how much better you can do entering a position in PRA without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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PRA Corporate Directors

PRA corporate directors refer to members of a PRA board of directors. The board of directors generally takes responsibility for the PRA's affairs and long-term direction of the entity. A corporate director does not make decisions for the corporation on his own. As a member of the board of directors, she or he must function as a part of a group that makes decisions on behalf of the business only by the board of directors' meetings. To pass a resolution, a majority of PRA's board members must vote for the resolution. The PRA board of directors' duties also include the election, removal, and supervision of officers, including the adoption, amendment, and repeal of bylaws.

David Roberts	Lead Independent Director	Profile
Marjorie Connelly	Director	Profile
James Nussle	Independent Director	Profile
Scott Tabakin	Independent Director	Profile

How to buy PRA Stock?

Examine PRA's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research PRA's leadership team and their track record. Good management can help PRA navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Consumer Finance space and any emerging trends that could impact PRA's business and its evolving consumer preferences.
Compare PRA's performance and market position to its competitors. Analyze how PRA is positioned in terms of product offerings, innovation, and market share.
Check if PRA pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about PRA's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

Already Invested in PRA Group?

The danger of trading PRA Group is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of PRA is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than PRA. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile PRA Group is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.

When determining whether PRA Group offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of PRA's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Pra Group Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Pra Group Stock: