Encore Capital Group (NASDAQ:ECPG) Downgraded by Zacks Research to Hold

Key Points

• Zacks Research downgraded Encore Capital Group from “strong buy” to “hold,” although the broader analyst consensus remains “Moderate Buy,” with five Buy ratings and one Hold rating.
• Encore reported quarterly EPS of $2.81, beating estimates of $2.67, while revenue rose 11.3% year over year to $491.87 million, above expectations.
• The stock opened at $99.19 and remains near its 52-week high of $104.98; management expects fiscal 2026 EPS of $13.00–$14.00, compared with analysts’ $13.52 consensus estimate.

Encore Capital Group (NASDAQ:ECPG - Get Free Report) was downgraded by research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Monday, Zacks reports.

Several other equities research analysts have also recently issued reports on the stock. Citizens Jmp raised their price target on shares of Encore Capital Group from $108.00 to $115.00 and gave the stock a "market outperform" rating in a research note on Wednesday, June 17th. Weiss Ratings raised shares of Encore Capital Group from a "hold (c)" rating to a "buy (b-)" rating in a research report on Monday, August 3rd. Citigroup reissued a "market outperform" rating on shares of Encore Capital Group in a research report on Tuesday, August 11th. Finally, Truist Financial upped their price objective on shares of Encore Capital Group from $105.00 to $112.00 and gave the company a "buy" rating in a research note on Thursday, August 6th. Five investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $89.75.

Encore Capital Group Stock Performance

NASDAQ ECPG opened at $99.19 on Monday. The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 3.87. Encore Capital Group has a fifty-two week low of $39.94 and a fifty-two week high of $104.98. The business has a fifty day moving average of $97.98 and a 200-day moving average of $87.71. The stock has a market cap of $2.10 billion, a price-to-earnings ratio of 7.51 and a beta of 1.30.

Encore Capital Group (NASDAQ:ECPG - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The asset manager reported $2.81 EPS for the quarter, beating analysts' consensus estimates of $2.67 by $0.14. The business had revenue of $491.87 million for the quarter, compared to analyst estimates of $455.10 million. Encore Capital Group had a return on equity of 29.83% and a net margin of 15.86%.The business's revenue for the quarter was up 11.3% compared to the same quarter last year. During the same quarter last year, the company earned $2.49 earnings per share. Encore Capital Group has set its FY 2026 guidance at 13.000-14.000 EPS. As a group, analysts predict that Encore Capital Group will post 13.52 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of ECPG. USA Financial Formulas acquired a new stake in shares of Encore Capital Group in the first quarter worth $46,000. Public Employees Retirement System of Ohio acquired a new position in shares of Encore Capital Group during the 2nd quarter valued at $89,000. Allworth Financial LP acquired a new position in shares of Encore Capital Group during the 2nd quarter valued at $136,000. Callan Family Office LLC purchased a new stake in Encore Capital Group during the 2nd quarter worth $204,000. Finally, Sequoia Financial Advisors LLC purchased a new stake in Encore Capital Group during the 2nd quarter worth $219,000.

About Encore Capital Group

Encore Capital Group, Inc is a global specialty finance company that purchases portfolios of charged-off consumer receivables and works with individuals to resolve their outstanding obligations. The company manages these accounts through a range of repayment solutions, including flexible payment arrangements and other servicing programs designed to help consumers address unpaid debts.

Encore operates primarily through Midland Credit Management in the United States and Cabot Credit Management in Europe and other international markets.

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