World Acceptance Corp sees $24 million stock sale by major shareholder

Published 20/02/2025, 22:04
World Acceptance Corp sees $24 million stock sale by major shareholder

Prescott General Partners LLC, a significant shareholder of World Acceptance Corp (NASDAQ:WRLD), has offloaded a substantial portion of its stake in the company. According to the recent SEC filing, the firm sold 162,712 shares of the personal credit institution’s common stock on February 18, 2025. The shares were sold at a price of $147.50 each, totaling approximately $24 million. The transaction comes as World Acceptance, currently valued at $777.5 million, trades at an attractive P/E ratio of 9.8 and has shown strong momentum with a 32% return over the past six months.

Following this transaction, Prescott General Partners retains ownership of 1,245,016 shares through Prescott Associates L.P., and additional shares through Prescott International Partners L.P. and Idoya Partners L.P. The firm has stated that it disclaims beneficial ownership of the shares beyond its pecuniary interest. According to InvestingPro, World Acceptance maintains excellent financial health with strong liquidity ratios and demonstrates robust profitability metrics. For deeper insights into WRLD’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, World Acceptance Corporation reported a strong performance in its Q3 2025 earnings, with earnings per share (EPS) of $2.45, significantly surpassing analyst expectations of $1.23. The company’s revenue reached $138.6 million, exceeding the projected $136.67 million. This earnings report reflects World Acceptance’s strategic focus on smaller loan products, contributing to a 6.6% growth in its portfolio. In another development, S&P Global Ratings upgraded World Acceptance’s outlook to stable from negative, highlighting the company’s improved asset quality and stronger covenant cushion. The company’s asset quality improved, with net charge-offs dropping to 17.1% of net receivables. Additionally, World Acceptance announced a $25 million stock buyback program, which includes remaining amounts from previous authorizations. This initiative aligns with the company’s strategy to efficiently manage capital and deliver value to shareholders. These developments indicate World Acceptance’s ongoing efforts to strengthen its financial position and operational performance.

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