PRA Group's 15min chart shows KDJ Golden Cross, bullish Marubozu formation.

PRA Group's 15-minute chart has recently exhibited a significant bullish trend, as evidenced by the occurrence of a KDJ Golden Cross and a Bullish Marubozu at 08/14/2025 13:15. This suggests that the momentum of the stock price is shifting decidedly in favor of an upward trajectory, with a potential for further increases. The dominance of buyers in the market is a strong indicator that bullish momentum is likely to continue.

PRA Group's 15-minute chart has recently exhibited a significant bullish trend, as evidenced by the occurrence of a KDJ Golden Cross and a Bullish Marubozu at 08/14/2025 13:15. This suggests that the momentum of the stock price is shifting decidedly in favor of an upward trajectory, with a potential for further increases. The dominance of buyers in the market is a strong indicator that bullish momentum is likely to continue.

Strong Q2 Earnings and Strategic Initiatives

PRA Group's Q2 2025 earnings report underscored the company's robust financial performance. The company reported a net income of $42 million, up from $4 million in Q1, driven by a 62.4% cash efficiency ratio and strategic operational turnaround [2]. This significant improvement highlights the company's ability to balance aggressive collections with prudent expense management.

The company's cash collections rose 13.2% year-over-year to $536.3 million, outpacing the Zacks Consensus Estimate of $519 million. This growth was driven by robust performance in both the U.S. and European markets, with the U.S. legal channel alone contributing a 24% increase to $119 million [2].

Strategic U.S. Transformation

Under the leadership of CEO Martin Sjolund, PRA is executing a three-pillar strategy to reshape its U.S. business. This includes optimizing high-return NPL portfolios, expanding legal collections, and managing expenses to drive long-term growth. Sjolund's track record in revitalizing PRA's European operations lends credibility to the U.S. turnaround [2].

Undervalued Recovery Play

PRA Group's share repurchases and strategic focus on shareholder value creation suggest management's conviction in its long-term prospects. The company's trailing twelve months Adjusted EBITDA of $1.24 billion (up 20% YoY) highlights its scalability, despite its Zacks Rank #3 status [2].

Technical Analysis and Momentum

Technical analysis of PRA Group's stock also suggests a bullish trend. The 15-minute chart exhibited a KDJ Golden Cross and Bullish Marubozu pattern on August 5, 2022, indicating a shift in momentum towards the upside. As of August 8, 2025, 11:45, the Bollinger Bands were expanding downward, suggesting a bearish Marubozu signal. However, the recent bullish trend indicates a shift back to a more favorable market sentiment [1].

Investment Considerations

Investors should closely monitor PRA Group's financial performance, including its earnings reports, to ensure that the company's growth momentum justifies its share price. Additionally, they may consider diversifying their portfolios to mitigate potential risks associated with any individual stock.

References:
[1] https://www.ainvest.com/news/pra-group-15min-chart-shows-bollinger-bands-expanding-downward-bearish-marubozu-signal-2508/
[2] https://www.ainvest.com/news/pra-group-q2-2025-earnings-outperformance-strategic-turnaround-signal-undervalued-recovery-play-2508/