Atlanticus (NASDAQ:ATLC) Sees Strong Trading Volume Following Strong Earnings

Key Points

• Atlanticus exceeded quarterly expectations, reporting $2.50 in earnings per share versus the $2.42 consensus estimate, while revenue of $744.31 million topped forecasts of $716.35 million.
• Analyst sentiment remains positive, with the stock carrying a “Moderate Buy” average rating and a consensus price target of $126.
• Insiders have sold 75,000 shares worth approximately $7.9 million over the past 90 days, although company insiders still own 51% of Atlanticus.

Atlanticus Holdings Corporation (NASDAQ:ATLC - Get Free Report) saw an uptick in trading volume on Friday following a stronger than expected earnings report. Approximately 73,397 shares were traded during mid-day trading, a decline of 30% from the previous session's volume of 105,079 shares.The stock last traded at $103.6740 and had previously closed at $111.79.

The credit services provider reported $2.50 earnings per share for the quarter, topping analysts' consensus estimates of $2.42 by $0.08. Atlanticus had a net margin of 5.86% and a return on equity of 23.43%. The business had revenue of $744.31 million for the quarter, compared to analyst estimates of $716.35 million.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on ATLC. William Blair set a $100.00 price target on shares of Atlanticus in a report on Wednesday, June 10th. HSBC set a $144.00 price objective on Atlanticus in a research note on Monday, July 13th. Wall Street Zen upgraded Atlanticus from a "buy" rating to a "strong-buy" rating in a research note on Sunday, July 5th. B. Riley Financial reaffirmed a "buy" rating on shares of Atlanticus in a report on Thursday, May 14th. Finally, Citigroup reiterated an "outperform" rating on shares of Atlanticus in a research report on Thursday, July 16th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, Atlanticus presently has an average rating of "Moderate Buy" and an average price target of $126.00.

Insider Activity at Atlanticus

In related news, CAO Mitchell Saunders sold 10,000 shares of the company's stock in a transaction on Monday, June 29th. The shares were sold at an average price of $102.20, for a total value of $1,022,000.00. Following the completion of the transaction, the chief accounting officer directly owned 46,273 shares in the company, valued at approximately $4,729,100.60. The trade was a 17.77% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO William Mccamey sold 10,000 shares of the stock in a transaction on Tuesday, June 30th. The shares were sold at an average price of $103.01, for a total value of $1,030,100.00. Following the completion of the transaction, the chief financial officer directly owned 127,410 shares in the company, valued at approximately $13,124,504.10. This represents a 7.28% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 75,000 shares of company stock worth $7,868,627. Corporate insiders own 51.00% of the company's stock.

Hedge Funds Weigh In On Atlanticus

A number of hedge funds and other institutional investors have recently modified their holdings of ATLC. Financial Management Professionals Inc. bought a new position in shares of Atlanticus during the 2nd quarter valued at about $33,000. Advisory Services Network LLC purchased a new stake in Atlanticus in the third quarter worth approximately $47,000. Jones Financial Companies Lllp purchased a new stake in Atlanticus in the first quarter worth approximately $71,000. State of Alaska Department of Revenue bought a new position in Atlanticus during the fourth quarter valued at approximately $105,000. Finally, Inspire Investing LLC purchased a new position in shares of Atlanticus during the first quarter worth approximately $87,000. 14.15% of the stock is currently owned by hedge funds and other institutional investors.

Atlanticus Price Performance

The stock has a market capitalization of $1.53 billion, a PE ratio of 15.11 and a beta of 2.11. The company has a debt-to-equity ratio of 1.08, a current ratio of 1.24 and a quick ratio of 1.24. The firm's 50 day simple moving average is $97.77 and its 200 day simple moving average is $75.08.

Atlanticus Company Profile

Atlanticus Holdings Corporation is a specialty financial services holding company that provides credit products and solutions to consumers across the United States. Through its subsidiaries, the company offers proprietary credit card programs, installment loan products and deposit accounts designed to serve customers who may have limited access to traditional credit. Atlanticus markets its offerings through a variety of channels, including direct‐to‐consumer online platforms, mail order, call centers and partnerships with retail and e-commerce businesses.

The company underwrites and services credit card portfolios under private-label and co-branded agreements, combining technology‐enabled underwriting with tailored customer service.

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