Debt buyer PRA Group hits more than 1 year-low after Q1 miss

Debt buyer PRA Group's PRAA.O shares plunge as much as 31.5%, hitting their lowest since November 2023

PRAA late Monday posted Q1 profit well below Wall Street expectations, its first miss in about two years

Co says it saw a shortfall in cash collections during the reported quarter, relative to PRAA's internal models

"Historically, our first quarter cash collections in the U.S. have experienced seasonality increases, typically driven by consumer tax refunds, that didn't materialize this quarter to the extent that we modeled, resulting in lower profitability compared to prior quarters" - CEO Vikram Atal

PRAA also expects return on average tangible equity, a closely watched profitability gauge, to be at a lower level in 2025 than its previous target of about 12%

Two of 4 brokerages rate the stock "buy" or higher and 2 "hold"; median PT $23 - data compiled by LSEG

As of last close, PRAA stock down 8.1% YTD