PRA plunges after third-quarter earnings miss, revenue up but EPS well below estimates

What happened

PRA (PRAA) fell 36.7% on November 6, 2026, because the company reported third-quarter results that missed consensus earnings estimates. The stock closed at $12.92 after opening 21.5% below the previous close and traded at high volume, with trading volume 4.4 times its 20-day average. Market breadth was not the driver: the S&P 500 rose 0.3% on the day while the Financial Services sector median fell 0.1%.

How big was the move

The decline was 5.8 times a typical daily move for this stock, and the change was 36.6 percentage points worse than the sector median. Over the last five sessions the stock fell 33.7%, while the S&P 500 over five sessions fell 2.7%. The stock’s market sensitivity is a beta of 1.04, meaning the stock tends to move about as much as the market.

The technical picture

The stock sits 33.6% below its 20-day moving average, 33.9% below its 50-day moving average and 26.8% below its 200-day moving average. The 50-day average is above the 200-day average, a sign of an established uptrend, yet the Relative Strength Index (14 days) is 22, below 30, a level often called oversold. The stock is 42.7% below the 52-week high and has fallen 36.4% over one month and 31.9% over three months. Volatility is 100% annualized over 60 days, the highest reading of the past five years.

Fundamentals and valuation

For the four quarters through September 30, 2026, revenue was $1.34 billion, which grew 13.9% from a year earlier. Diluted earnings per share for that period were $4.09 and gross margin was 111.1%, compared with 61.5% a year earlier. Operating margin was 69.4%, up from 5.3% a year earlier, and return on invested capital was 221.2%. The balance sheet shows net cash of $111.8 million, and share count over one year decreased by 2.7%.

Valuation is strikingly low on common metrics: the stock trades at 3.2 times trailing earnings and 3.9 times expected earnings. The price to trailing earnings is the lowest reading of the past five years, with a five-year median of 11.3 times earnings. PromtFinance scores rank Value 100 (Exceptional) and Quality 100 (Exceptional), while Growth is 23 (Very weak) and Momentum is 23 (Very weak). Those scores signal a company that looks cheap by traditional measures but whose recent operating momentum and growth profile are weak.

Earnings and analyst expectations

PRA’s last report, on November 5, 2026, showed quarterly earnings of $0.39 per share, which missed the Zacks Consensus Estimate of $1.07, according to Zacks Investment Research. The company reported third-quarter 2026 results showing $15M of net income attributable to the company. Management said lower operating costs helped boost adjusted earnings and reduce leverage while the firm continued investing in legal collections and technology under its PRA 3.0 strategy, according to MarketBeat and PRNewsWire.

The stock has recorded consecutive quarters beating estimates: 0, and the average surprise over the last four reports is 92.9% above estimates. Typical two-day reaction after recent reports has been rose 2.8%.

Analysts’ consensus rating is Hold, based on 13 analysts with a rating. The consensus price target is $25.00, which is 93.5% above the closing price. Thirty-eight percent of analysts rate the stock Buy or Strong Buy.

What to watch

• November 9, 2026: Next report date.
• November 5, 2026: Last report showed earnings per share of $0.39 against $1.07 expected, 51.2% below estimates (Zacks Investment Research).
• Trading volume 4.4 times its 20-day average on November 6, 2026, and volatility 100% annualized over 60 days (highest of the past five years).
• Price to trailing earnings 3.2 times trailing earnings, the lowest reading of the past five years (five-year median: 11.3 times earnings).
• Balance sheet: net cash of $111.8 million.