Encore Capital Group Inc (NASDAQ:ECPG) Given Average Recommendation of "Moderate Buy" by Analysts

Key Points

• Analysts remain broadly bullish: Encore Capital Group has a “Moderate Buy” consensus from six analysts, with five Buys and one Hold. The average 12-month price target is $89.75, while Truist and Citizens JMP recently raised their targets to $112 and $115, respectively.
• Quarterly results exceeded consensus estimates: Encore reported EPS of $2.81 versus expectations of $2.67 and revenue of $491.9 million versus $455.1 million expected. Revenue increased 11.3% year over year, supported by record global collections and strong U.S. execution.
• Management reaffirmed its 2026 outlook: Full-year EPS guidance remains $13.00–$14.00, with analysts forecasting $13.57. Shares opened at $100.20 and are near their 12-month high of $101.80, though the company carries substantial leverage with a 3.87 debt-to-equity ratio.

Encore Capital Group Inc (NASDAQ:ECPG - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the six research firms that are currently covering the stock, MarketBeat reports. One analyst has rated the stock with a hold rating and five have issued a buy rating on the company. The average 12 month price objective among analysts that have issued a report on the stock in the last year is $89.75.

Several research analysts recently issued reports on the company. Zacks Research lowered Encore Capital Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 6th. Wall Street Zen downgraded Encore Capital Group from a "strong-buy" rating to a "hold" rating in a report on Saturday, May 9th. Weiss Ratings upgraded Encore Capital Group from a "hold (c)" rating to a "buy (b-)" rating in a research note on Monday. Truist Financial upped their price objective on shares of Encore Capital Group from $105.00 to $112.00 and gave the company a "buy" rating in a report on Thursday. Finally, Citizens Jmp lifted their target price on shares of Encore Capital Group from $108.00 to $115.00 and gave the stock a "market outperform" rating in a research note on Wednesday, June 17th.

Encore Capital Group Price Performance

NASDAQ ECPG opened at $100.20 on Friday. The firm's fifty day simple moving average is $88.29 and its two-hundred day simple moving average is $76.50. The company has a current ratio of 0.96, a quick ratio of 0.90 and a debt-to-equity ratio of 3.87. Encore Capital Group has a 12-month low of $38.68 and a 12-month high of $101.80. The firm has a market capitalization of $2.13 billion, a P/E ratio of 7.59 and a beta of 1.27.

Encore Capital Group (NASDAQ:ECPG - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The asset manager reported $2.81 EPS for the quarter, beating the consensus estimate of $2.67 by $0.14. The firm had revenue of $491.87 million during the quarter, compared to analyst estimates 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 for the quarter was up 11.3% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.49 EPS. Encore Capital Group has set its FY 2026 guidance at 13.000-14.000 EPS. Analysts forecast that Encore Capital Group will post 13.57 EPS for the current fiscal year.

Insider Activity

In other Encore Capital Group news, insider John Yung sold 2,000 shares of the firm's stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $82.08, for a total value of $164,160.00. Following the completion of the transaction, the insider owned 64,570 shares of the company's stock, valued at approximately $5,299,905.60. This trade represents a 3.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Corporate insiders own 3.00% of the company's stock.

Hedge Funds Weigh In On Encore Capital Group

Hedge funds have recently made changes to their positions in the company. IFP Advisors Inc lifted its position in Encore Capital Group by 1,729.6% during the 4th quarter. IFP Advisors Inc now owns 494 shares of the asset manager's stock worth $27,000 after acquiring an additional 467 shares during the period. EverSource Wealth Advisors LLC increased its holdings in shares of Encore Capital Group by 185.7% in the fourth quarter. EverSource Wealth Advisors LLC now owns 717 shares of the asset manager's stock valued at $39,000 after purchasing an additional 466 shares during the period. USA Financial Formulas acquired a new position in shares of Encore Capital Group in the first quarter valued at about $46,000. Allworth Financial LP raised its stake in shares of Encore Capital Group by 29.1% in the fourth quarter. Allworth Financial LP now owns 1,139 shares of the asset manager's stock worth $62,000 after purchasing an additional 257 shares during the last quarter. Finally, Tower Research Capital LLC TRC lifted its holdings in shares of Encore Capital Group by 168.9% during the second quarter. Tower Research Capital LLC TRC now owns 2,716 shares of the asset manager's stock worth $105,000 after purchasing an additional 1,706 shares during the period.

Encore Capital Group News Summary

Here are the key news stories impacting Encore Capital Group this week:

• Positive Sentiment: Strong revenue and collections: Second-quarter revenue reached $491.9 million, exceeding the $455.1 million consensus estimate and increasing 11.3% year over year. Record global collections and strong U.S. execution supported the result. ECPG Q2 Earnings Miss Despite Year-over-Year Revenue Growth and Record Collections
• Positive Sentiment: 2026 outlook reaffirmed at a favorable level: Encore issued full-year 2026 EPS guidance of $13.00 to $14.00, with the midpoint above the roughly $13.01 analyst consensus. This indicates management remains confident despite quarterly earnings variability. Encore Capital Group Earnings Report
• Positive Sentiment: Analyst price target increased: Truist Financial raised its target from $105 to $112 and maintained a Buy rating, signaling additional potential upside based on Encore’s operating momentum and valuation. Encore Capital Group Price Target Raised to $112 at Truist Financial
• Positive Sentiment: Northland raised several estimates: Northland Securities increased its FY2026 EPS forecast to $13.50 from $13.00 and lifted its Q3 2026 estimate to $3.20 from $3.04. It also made modest upward revisions to estimates for Q2 and Q3 2027.
• Neutral Sentiment: Quarterly earnings comparisons are mixed: Encore reported $2.81 EPS, above the MarketBeat consensus of $2.67 and the prior-year $2.49, although Zacks characterized the result as below its $3.07 consensus. Northland made only a minor reduction to its Q4 2027 EPS forecast, suggesting limited impact on longer-term expectations. Encore Capital Group Lags Q2 Earnings Estimates

Encore Capital Group Company Profile

Encore Capital Group, Inc is a global specialty finance company that focuses on the purchase and management of nonperforming consumer receivables. Through its subsidiaries, the company acquires charged-off debt portfolios from credit card issuers, banks, and other financial institutions, and seeks to recover outstanding balances through a combination of customer outreach, payment arrangements, and, where appropriate, legal collection efforts. Encore's business model emphasizes compliance with regulatory and industry standards to ensure ethical and transparent debt-recovery practices.

Headquartered in San Diego, California, Encore operates across North America and Europe.

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