Why PRA Group Stock Is Dropping Today

PRA Group PRAA shares are trading lower after the company reported a year-over-year decrease in Q1 EPS and sales results. Following earnings, multiple analysts lowered their respective price target on the stock.

What to Know: On Monday following market closure, PRA reported its earnings for the period ended March 31, 2023. The company reported quarterly earnings (losses) of $(1.50) per share compared to earnings of $0.97 during the same period last year, representing a 254.6% decrease year over year. The company reported quarterly sales of $155.47 million compared to sales of $240.60 million during the same period last year, representing a 35.4% decrease year over year.

The company attributes the unfavorable decrease in bottom and topline figures as a result of the current economic environment, and a softer-than-expected U.S. Tax season. Total cash collections decreased 11.6% year over year on a constant currency-adjusted basis.

"We also had another strong purchasing quarter, investing $230 million in portfolios, which was up 56% year-over-year, as we further capitalize on what we believe to be an increasingly improving supply environment,” said Vikram Atal, president, and chief executive officer.

As a global leader in acquiring and collecting nonperforming loans, PRA Group, Inc. returns capital to banks and other creditors to help expand financial services for consumers in the Americas, Europe, and Australia.

Price Action: According to data from Benzinga Pro, PRA Group shares were down 38.1%, trading at $21.21 at the time of publication. The stock has a 52-week high of $43.34 and a 52-week low of $29.73.

As the sell-off continues, the stock is seeing abnormal volume. 1.62 million shares exchanged hands as of last check compared to the 100-day average of 222,862 shares.