Encore Capital Group Inc (NASDAQ:ECPG) Stock Rated "Moderate Buy" by Sell-Side Brokerages

Key Points

• Encore Capital Group has a “Moderate Buy” consensus rating among six analysts, with five buys and one hold. The average 12-month price target is $103.25, while recent targets range as high as $124.
• The stock opened at $104.16, near its 52-week high of $105.98, and has risen above its 50-day and 200-day moving averages. Encore reported quarterly EPS of $2.81, beating estimates, while revenue increased 11.3% year over year to $491.87 million.
• Institutional interest has grown, with investors including Farther Finance Advisors and GAMMA Investing increasing their positions, while several other funds initiated new stakes.

Shares of Encore Capital Group Inc (NASDAQ:ECPG - Get Free Report) have received an average recommendation of "Moderate Buy" from the six research firms that are presently covering the firm, Marketbeat.com reports. One equities research analyst has rated the stock with a hold recommendation and five have given a buy recommendation to the company. The average 12-month target price among brokerages that have covered the stock in the last year is $103.25.

A number of equities analysts have issued reports on the company. Northland Securities set a $124.00 price target on Encore Capital Group in a research note on Tuesday, October 13th. Zacks Research lowered Encore Capital Group from a "strong-buy" rating to a "hold" rating in a report on Monday, October 5th. Truist Financial increased their price objective on Encore Capital Group from $105.00 to $112.00 and gave the stock a "buy" rating in a research note on Thursday, August 6th. Citigroup restated a "market outperform" rating on shares of Encore Capital Group in a report on Tuesday, August 11th. Finally, Weiss Ratings upgraded Encore Capital Group from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, October 8th.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of ECPG. Farther Finance Advisors LLC raised its stake in Encore Capital Group by 40.4% in the 3rd quarter. Farther Finance Advisors LLC now owns 386 shares of the asset manager's stock valued at $36,000 after acquiring an additional 111 shares during the period. USA Financial Formulas purchased a new stake in Encore Capital Group during the first quarter valued at about $46,000. Public Employees Retirement System of Ohio bought a new position in Encore Capital Group during the second quarter worth about $89,000. GAMMA Investing LLC boosted its position in Encore Capital Group by 26.8% during the third quarter. GAMMA Investing LLC now owns 1,339 shares of the asset manager's stock worth $126,000 after purchasing an additional 283 shares during the period. Finally, Allworth Financial LP bought a new position in Encore Capital Group during the second quarter worth about $136,000.

Encore Capital Group Stock Performance

NASDAQ:ECPG opened at $104.16 on Thursday. The company has a market capitalization of $2.21 billion, a PE ratio of 7.88 and a beta of 1.30. The company has a 50 day simple moving average of $99.34 and a two-hundred day simple moving average of $90.17. The company has a debt-to-equity ratio of 3.87, a quick ratio of 0.96 and a current ratio of 0.96. Encore Capital Group has a fifty-two week low of $40.52 and a fifty-two week high of $105.98.

Encore Capital Group (NASDAQ:ECPG - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The asset manager reported $2.81 earnings per share for the quarter, topping analysts' consensus estimates of $2.67 by $0.14. The firm had revenue of $491.87 million during the quarter, compared to the consensus estimate 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 was up 11.3% compared to the same quarter last year. During the same period last year, the business posted $2.49 EPS. Encore Capital Group has set its FY 2026 guidance at 13.000-14.000 EPS. Research analysts anticipate that Encore Capital Group will post 13.52 earnings per share for the current year.

Encore Capital Group Company Profile

Encore Capital Group, Inc is a specialty finance company that purchases portfolios of charged-off consumer receivables and provides debt recovery and management services. Through its operating businesses, the company works with consumers to resolve outstanding obligations through payment plans and other repayment arrangements.

Encore serves consumers and creditors across multiple markets, including the United States, the United Kingdom and other European countries. Its major operating platforms include Midland Credit Management in the United States and Cabot Credit Management in Europe.

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