Luke J. Umstetter, Senior Vice President, General Counsel, Chief Compliance Officer, and Secretary at World Acceptance Corp (NASDAQ:WRLD), recently sold a portion of his holdings in the company. According to a recent filing, Umstetter sold 550 shares of the company's common stock on November 1, 2024. The shares were sold at an average price of $114.30 each, totaling approximately $62,865. Following this transaction, Umstetter retains ownership of 11,370 shares in the company.
In other recent news, World Acceptance Corporation reported its earnings and revenue results, revealing a moderate increase in its customer base during the first quarter of 2025, marked by a notable rise in returning customers. The company's customer base grew by 50 basis points despite an over 11% decrease in the average loan balance from its peak in the fiscal year 2023. The company also reported a reduction in General & Administrative expenses by 9.9% year-over-year and the ongoing creation of a warehouse facility for loan securitization, expected in Q3.
On the governance front, shareholders have elected seven directors to the company's Board, and approved the executive compensation for the named executive officers. These recent developments also include the ratification of RSM US LLP as the company's independent registered public accounting firm for the fiscal year ending March 31, 2025.
World Acceptance Corporation is targeting modest, single-digit growth with high credit quality for the current fiscal year. The company is optimistic about achieving its earnings per share targets with long-term incentive plans in place and expects yields and delinquency trends to improve in the second quarter.
InvestingPro Insights
While Luke J. Umstetter's recent sale of World Acceptance Corp (NASDAQ:WRLD) shares might raise eyebrows, a deeper look at the company's financials reveals some interesting insights. According to InvestingPro data, World Acceptance Corp is currently trading at a P/E ratio of 7.52, which is relatively low compared to many of its peers in the financial services sector. This low valuation is further supported by an InvestingPro Tip indicating that the company is "Trading at a low P/E ratio relative to near-term earnings growth."
Despite the recent insider sale, another InvestingPro Tip suggests that "Management has been aggressively buying back shares," which could be seen as a sign of confidence in the company's future prospects. This is particularly noteworthy given that World Acceptance Corp does not pay a dividend to shareholders, as per another InvestingPro Tip.
The company's financial health appears robust, with an InvestingPro Tip highlighting that "Liquid assets exceed short term obligations." This strong balance sheet position is complemented by the company's profitability, as evidenced by its operating income margin of 26.97% for the last twelve months.
For investors seeking more comprehensive analysis, InvestingPro offers 8 additional tips for World Acceptance Corp, providing a deeper understanding of the company's financial position and market performance.
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