PRAA - Why PRA Group Stock Is Moving Higher Today
2024-02-16 10:30:50 ET
In a moment when investors are focused on the health of the consumer, markets are sure to take a close look at the performance of one of the nation's largest collection agencies. Shares of PRA Group (NASDAQ: PRAA) soared 25% at the open Friday after the company reported better-than-expected results and said it sees further opportunities up ahead.
PRA is in the business of acquiring and collecting nonperforming loans, doing business both in the United States and Europe. When a loan goes south, a lender will often be willing to sell it for pennies on the dollar, creating an opportunity for a company like PRA that is willing to do the legwork to get the borrower back on schedule.
PRA lost $0.22 per share in the fourth quarter on revenue of $221.42 million, coming in ahead of Wall Street expectations for a $0.37 per share loss on sales of $208 million. The company purchased $1.2 billion worth of loans in 2023, up 36%, with its U.S. business up 84%. The company has been working to revamp its U.S. business, and CEO Vikram Atal said in a statement that work is starting to pay off.
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Why PRA Group Stock Is Moving Higher Today