Encore Capital Group Inc (NASDAQ:ECPG) Receives Consensus Rating of "Moderate Buy" from Analysts

Key Points

• Analysts: "Moderate Buy" — Six brokerages rate Encore Capital a consensus "Moderate Buy" (4 buys, 2 holds) with an average 1‑year price target of $80.50 and individual targets ranging roughly from $70 to $100 amid several recent upgrades.
• Quarterly beat and strong growth — Encore reported EPS of $3.37 vs. $2.20 est. and revenue of $473.6M vs. $423.1M, a 78.3% year‑over‑year revenue increase, leaving the stock at about a 7.5x P/E and a ~$1.75B market cap.
• Insider sale — Director Ryan B. Bell sold 7,240 shares at roughly $69.04 (~$500k), trimming his stake by 13.1%; insiders now hold 2.63% of the company.

Shares of Encore Capital Group Inc (NASDAQ:ECPG - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the six brokerages that are presently covering the stock, Marketbeat Ratings reports. Two analysts have rated the stock with a hold recommendation and four have issued a buy recommendation on the company. The average 1 year price objective among brokerages that have issued ratings on the stock in the last year is $80.50.

Several analysts have recently commented on the stock. Northland Securities set a $70.00 price target on shares of Encore Capital Group in a research note on Thursday, January 22nd. Truist Financial set a $100.00 price target on shares of Encore Capital Group in a research note on Tuesday, April 21st. Wall Street Zen raised shares of Encore Capital Group from a "buy" rating to a "strong-buy" rating in a research note on Saturday, April 18th. Weiss Ratings raised shares of Encore Capital Group from a "sell (d-)" rating to a "hold (c-)" rating in a research note on Friday, February 27th. Finally, Citizens Jmp increased their price target on shares of Encore Capital Group from $75.00 to $90.00 and gave the company a "market outperform" rating in a research note on Thursday, February 26th.

Insider Transactions at Encore Capital Group

In other Encore Capital Group news, insider Ryan B. Bell sold 7,240 shares of the firm's stock in a transaction that occurred on Monday, March 2nd. The shares were sold at an average price of $69.04, for a total value of $499,849.60. Following the transaction, the insider directly owned 48,170 shares of the company's stock, valued at approximately $3,325,656.80. This trade represents a 13.07% 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. Insiders own 2.63% of the company's stock.

Hedge Funds Weigh In On Encore Capital Group

Hedge funds and other institutional investors have recently bought and sold shares of the business. IFP Advisors Inc boosted its stake in Encore Capital Group by 1,729.6% in the fourth quarter. IFP Advisors Inc now owns 494 shares of the asset manager's stock valued at $27,000 after acquiring an additional 467 shares during the last quarter. EverSource Wealth Advisors LLC boosted its stake in 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 acquiring an additional 466 shares during the last quarter. Allworth Financial LP boosted its stake in Encore Capital Group by 29.1% in the fourth quarter. Allworth Financial LP now owns 1,139 shares of the asset manager's stock valued at $62,000 after acquiring an additional 257 shares during the last quarter. LSV Asset Management bought a new position in Encore Capital Group in the third quarter valued at approximately $88,000. Finally, Tower Research Capital LLC TRC boosted its stake in Encore Capital Group by 168.9% in the second quarter. Tower Research Capital LLC TRC now owns 2,716 shares of the asset manager's stock valued at $105,000 after acquiring an additional 1,706 shares during the last quarter.

Encore Capital Group Stock Performance

NASDAQ ECPG opened at $81.93 on Thursday. The firm has a market cap of $1.75 billion, a price-to-earnings ratio of 7.48 and a beta of 1.26. The company has a 50 day moving average of $71.94 and a 200-day moving average of $58.90. The company has a current ratio of 0.68, a quick ratio of 0.68 and a debt-to-equity ratio of 4.10. Encore Capital Group has a 1-year low of $32.27 and a 1-year high of $85.42.

Encore Capital Group (NASDAQ:ECPG - Get Free Report) last posted its quarterly earnings data on Wednesday, February 25th. The asset manager reported $3.37 earnings per share for the quarter, topping the consensus estimate of $2.20 by $1.17. The company had revenue of $473.55 million during the quarter, compared to analyst estimates of $423.14 million. Encore Capital Group had a net margin of 14.52% and a return on equity of 28.19%. The company's revenue was up 78.3% on a year-over-year basis. During the same quarter last year, the business posted ($9.42) earnings per share. On average, equities analysts forecast that Encore Capital Group will post 11.97 earnings per share for the current fiscal year.

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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