Atlanticus (NASDAQ:ATLC) Sets New 52-Week High - Should You Buy?

Key Points

• Atlanticus shares reached a new 52-week high of $113.37, with the stock trading well above its 50-day and 200-day moving averages. Its market capitalization is approximately $1.65 billion, and its beta of 2.11 indicates relatively high volatility.
• Analyst sentiment remains positive overall, with a “Moderate Buy” consensus and an average price target of $126. BTIG raised its target to $179, while Zacks downgraded the stock to “Hold.”
• Atlanticus exceeded quarterly earnings expectations, reporting adjusted earnings of $2.23 per share versus the $1.69 consensus estimate, although revenue fell short of forecasts. Insiders sold 75,000 shares worth about $7.9 million during the last quarter.

Atlanticus Holdings Corporation (NASDAQ:ATLC - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $113.37 and last traded at $112.2450, with a volume of 67071 shares changing hands. The stock had previously closed at $108.06.

Analyst Upgrades and Downgrades

ATLC has been the topic of several research reports. BTIG Research upped their price objective on shares of Atlanticus from $105.00 to $179.00 and gave the company a "buy" rating in a report on Tuesday, June 30th. HSBC set a $144.00 price target on Atlanticus in a research note on Monday, July 13th. Citigroup reissued an "outperform" rating on shares of Atlanticus in a report on Thursday, July 16th. B. Riley Financial reissued a "buy" rating on shares of Atlanticus in a report on Thursday, May 14th. Finally, Zacks Research downgraded Atlanticus from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 13th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, Atlanticus has an average rating of "Moderate Buy" and an average target price of $126.00.

Atlanticus Price Performance

The company's 50-day moving average is $96.36 and its 200-day moving average is $74.01. The firm has a market cap of $1.65 billion, a price-to-earnings ratio of 16.31 and a beta of 2.11. The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt-to-equity ratio of 1.08.

Atlanticus (NASDAQ:ATLC - Get Free Report) last released its earnings results on Thursday, May 7th. The credit services provider reported $2.23 earnings per share for the quarter, topping the consensus estimate of $1.69 by $0.54. The firm had revenue of $679.59 million during the quarter, compared to analysts' expectations of $749.36 million. Atlanticus had a return on equity of 23.43% and a net margin of 5.86%. Equities research analysts predict that Atlanticus Holdings Corporation will post 9.48 earnings per share for the current year.

Insiders Place Their Bets

In other Atlanticus news, CEO Jeffrey A. Howard sold 10,000 shares of the business's stock in a transaction dated Tuesday, June 30th. The stock was sold at an average price of $103.01, for a total transaction of $1,030,100.00. Following the completion of the transaction, the chief executive officer owned 663,265 shares of the company's stock, valued at approximately $68,322,927.65. The trade was a 1.49% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Mitchell Saunders sold 10,000 shares of Atlanticus stock in a transaction on Monday, June 29th. The stock was sold at an average price of $102.20, for a total transaction of $1,022,000.00. Following the transaction, the chief accounting officer owned 46,273 shares in the company, valued at approximately $4,729,100.60. This trade represents a 17.77% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 75,000 shares of company stock valued at $7,868,627 in the last quarter. Corporate insiders own 51.00% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the company. Walleye Capital LLC acquired a new position in shares of Atlanticus in the 2nd quarter worth approximately $208,000. Financial Management Professionals Inc. acquired a new stake in shares of Atlanticus during the second quarter worth $33,000. Bank of America Corp DE raised its stake in Atlanticus by 18.1% during the first quarter. Bank of America Corp DE now owns 6,280 shares of the credit services provider's stock worth $330,000 after buying an additional 963 shares during the last quarter. Empowered Funds LLC raised its stake in Atlanticus by 7.0% during the first quarter. Empowered Funds LLC now owns 69,309 shares of the credit services provider's stock worth $3,637,000 after buying an additional 4,556 shares during the last quarter. Finally, Allspring Global Investments Holdings LLC lifted its holdings in Atlanticus by 11.8% in the first quarter. Allspring Global Investments Holdings LLC now owns 8,701 shares of the credit services provider's stock valued at $471,000 after buying an additional 918 shares during the period. Institutional investors own 14.15% of the company's stock.

About Atlanticus

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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