Atlanticus (NASDAQ:ATLC) Trading Up 9.9% Following Strong Earnings

Key Points

• Shares of Atlanticus Holdings Corporation rose 9.9% after reporting quarterly earnings of $1.51 per share, exceeding analysts' expectations by $0.21.
• The company achieved a revenue of $393.82 million, surpassing the consensus estimate of $373.87 million, and has a net margin of 8.54%.
• In terms of market performance, analysts have a consensus rating of "Buy" with a price target of $62.60, while recent institutional investments indicate increased interest in the company's stock.

Shares of Atlanticus Holdings Corporation (NASDAQ:ATLC - Get Free Report) traded up 9.9% during trading on Friday following a better than expected earnings announcement. The company traded as high as $54.40 and last traded at $54.53. 12,672 shares were traded during mid-day trading, a decline of 78% from the average session volume of 58,808 shares. The stock had previously closed at $49.61.

The credit services provider reported $1.51 earnings per share for the quarter, beating analysts' consensus estimates of $1.30 by $0.21. The business had revenue of $393.82 million during the quarter, compared to the consensus estimate of $373.87 million. Atlanticus had a net margin of 8.54% and a return on equity of 24.51%.

Wall Street Analysts Forecast Growth

Several brokerages have commented on ATLC. Wall Street Zen lowered shares of Atlanticus from a "strong-buy" rating to a "buy" rating in a research note on Friday, May 9th. Keefe, Bruyette & Woods reaffirmed a "market perform" rating and issued a $60.00 price objective (up previously from $52.00) on shares of Atlanticus in a research note on Monday, May 12th. Finally, JMP Securities upped their target price on Atlanticus from $72.00 to $75.00 and gave the company a "market outperform" rating in a report on Thursday, July 17th. One research analyst has rated the stock with a hold rating, four have given a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Buy" and a consensus price target of $62.60.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Wellington Management Group LLP grew its position in Atlanticus by 198.9% in the first quarter. Wellington Management Group LLP now owns 365,278 shares of the credit services provider's stock worth $18,684,000 after acquiring an additional 243,053 shares in the last quarter. Janney Montgomery Scott LLC bought a new position in Atlanticus in the 1st quarter worth approximately $2,588,000. American Century Companies Inc. increased its position in Atlanticus by 82.4% during the first quarter. American Century Companies Inc. now owns 95,476 shares of the credit services provider's stock worth $4,884,000 after acquiring an additional 43,142 shares during the period. Jacobs Levy Equity Management Inc. acquired a new position in shares of Atlanticus during the first quarter valued at about $1,666,000. Finally, AQR Capital Management LLC bought a new stake in shares of Atlanticus in the 1st quarter worth approximately $1,083,000. Institutional investors and hedge funds own 14.15% of the company's stock.

Atlanticus Stock Up 7.0%

The company has a debt-to-equity ratio of 0.57, a current ratio of 1.42 and a quick ratio of 1.42. The business has a 50 day moving average of $52.20 and a 200 day moving average of $52.87. The firm has a market capitalization of $802.84 million, a price-to-earnings ratio of 10.26 and a beta of 1.93.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.