Atlanticus (NASDAQ:ATLC) Releases Earnings Results, Beats Expectations By $0.21 EPS

Key Points

• Atlanticus reported earnings of $1.51 per share, exceeding expectations by $0.21 and surpassing revenue estimates with $393.82 million for the quarter.
• Stock performance improved as shares rose by $7.21, reaching a price of $56.82, with recent upgrades by analysts, including a target price increase by JMP Securities to $75.00.
• Institutional investment increased, with Empowered Funds LLC and Royal Bank of Canada boosting their holdings significantly in the first quarter.

Atlanticus (NASDAQ:ATLC - Get Free Report) released its quarterly earnings results on Thursday. The credit services provider reported $1.51 earnings per share for the quarter, beating analysts' consensus estimates of $1.30 by $0.21, Zacks reports. Atlanticus had a net margin of 8.51% and a return on equity of 25.04%. The business had revenue of $393.82 million for the quarter, compared to analysts' expectations of $373.87 million.

Atlanticus Stock Performance

Atlanticus stock traded up $7.21 during mid-day trading on Friday, hitting $56.82. The company had a trading volume of 66,714 shares, compared to its average volume of 56,588. The company has a market capitalization of $859.69 million, a price-to-earnings ratio of 9.99 and a beta of 1.93. Atlanticus has a 12-month low of $30.00 and a 12-month high of $64.70. The company's fifty day moving average is $52.35 and its 200-day moving average is $52.86. The company has a current ratio of 1.42, a quick ratio of 1.42 and a debt-to-equity ratio of 0.57.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on the stock. Wall Street Zen upgraded shares of Atlanticus from a "buy" rating to a "strong-buy" rating in a report on Saturday. JMP Securities lifted their target price on shares of Atlanticus from $72.00 to $75.00 and gave the stock a "market outperform" rating in a research note on Thursday, July 17th. Finally, Keefe, Bruyette & Woods reissued a "market perform" rating and set a $60.00 price target (up from $52.00) on shares of Atlanticus in a research report on Monday, May 12th. One equities research analyst has rated the stock with a hold rating, three have given a buy rating and two have issued a strong buy rating to the company. According to MarketBeat.com, Atlanticus has an average rating of "Buy" and an average target price of $62.60.

Hedge Funds Weigh In On Atlanticus

Several institutional investors have recently made changes to their positions in the company. Empowered Funds LLC boosted its holdings in Atlanticus by 47.3% during the first quarter. Empowered Funds LLC now owns 38,312 shares of the credit services provider's stock worth $1,960,000 after buying an additional 12,308 shares in the last quarter. Royal Bank of Canada boosted its holdings in Atlanticus by 274.6% during the first quarter. Royal Bank of Canada now owns 23,314 shares of the credit services provider's stock worth $1,193,000 after buying an additional 17,091 shares in the last quarter. AQR Capital Management LLC purchased a new stake in Atlanticus during the first quarter worth $1,083,000. Finally, Jones Financial Companies Lllp purchased a new stake in Atlanticus during the first quarter worth $71,000. 14.15% of the stock is owned by hedge funds and other institutional investors.

Atlanticus Company Profile

Atlanticus Holdings Corporation, a financial technology company, provides credit and related financial services and products to customers the United States. It operates in two segments, Credit as a Service, and Auto Finance. The Credit as a Service segment originates a range of consumer loan products, such as private label and general purpose credit cards originated by lenders through various channels, including retail and healthcare, direct mail solicitation, digital marketing, and partnerships with third parties; and offers credit to their customers for the purchase of various goods and services, including consumer electronics, furniture, elective medical procedures, healthcare, and home-improvements by partnering with retailers, healthcare providers, and other service providers.

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