Encore Capital Group (NASDAQ:ECPG) Downgraded to "Hold" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Encore Capital Group from strong-buy to hold, adding to a mixed analyst picture that still leaves the stock with an overall Moderate Buy rating and an average target price of $86.25.
• The company reported strong quarterly results, with EPS of $3.86 beating estimates and revenue of $475.41 million topping expectations; revenue rose 21% year over year.
• Shares were up 2.0% and traded at $83.88, near the stock’s 52-week high of $92.64, while analysts continue to point to varied price targets and ratings across firms.

Encore Capital Group (NASDAQ:ECPG - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "strong-buy" rating to a "hold" rating in a report released on Saturday.

Several other research analysts also recently commented on the company. Northland Securities set a $70.00 price objective on Encore Capital Group in a report on Thursday, January 22nd. Weiss Ratings upgraded Encore Capital Group from a "sell (d-)" rating to a "hold (c-)" rating in a report on Friday, February 27th. Truist Financial lifted their price objective on Encore Capital Group from $100.00 to $105.00 and gave the stock a "buy" rating in a report on Thursday. Citizens Jmp lifted their price objective on Encore Capital Group from $90.00 to $108.00 and gave the stock a "market outperform" rating in a report on Thursday. Finally, Zacks Research downgraded Encore Capital Group from a "strong-buy" rating to a "hold" rating in a report on Monday, April 27th. Four research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, Encore Capital Group currently has an average rating of "Moderate Buy" and an average target price of $86.25.

Encore Capital Group Trading Up 2.0%

NASDAQ ECPG opened at $83.88 on Friday. The stock's 50-day simple moving average is $73.99 and its two-hundred day simple moving average is $60.15. Encore Capital Group has a twelve month low of $35.67 and a twelve month high of $92.64. The company has a quick ratio of 0.68, a current ratio of 0.90 and a debt-to-equity ratio of 3.90. The company has a market capitalization of $1.80 billion, a price-to-earnings ratio of 6.51 and a beta of 1.33.

Encore Capital Group (NASDAQ:ECPG - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The asset manager reported $3.86 earnings per share for the quarter, beating analysts' consensus estimates of $3.02 by $0.84. Encore Capital Group had a return on equity of 30.70% and a net margin of 16.00%.The business had revenue of $475.41 million for the quarter, compared to the consensus estimate of $446.26 million. During the same quarter last year, the business posted $1.93 earnings per share. The company's revenue for the quarter was up 21.0% on a year-over-year basis. Encore Capital Group has set its FY 2026 guidance at 13.000-13.000 EPS. Research analysts forecast that Encore Capital Group will post 13.02 EPS for the current fiscal year.

Insider Activity at Encore Capital Group

In other news, insider Ryan B. Bell sold 7,240 shares of Encore Capital Group stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $69.04, for a total value of $499,849.60. Following the transaction, the insider owned 48,170 shares in the company, valued at approximately $3,325,656.80. The trade was a 13.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 2.54% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. IFP Advisors Inc increased its holdings 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 valued at $27,000 after purchasing an additional 467 shares during the period. EverSource Wealth Advisors LLC increased its holdings in Encore Capital Group by 185.7% during the 4th 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. Allworth Financial LP increased its holdings in Encore Capital Group by 29.1% during the 4th quarter. Allworth Financial LP now owns 1,139 shares of the asset manager's stock valued at $62,000 after purchasing an additional 257 shares during the period. LSV Asset Management purchased a new position in Encore Capital Group during the 3rd quarter valued at about $88,000. Finally, Tower Research Capital LLC TRC increased its holdings in Encore Capital Group by 168.9% during the 2nd quarter. Tower Research Capital LLC TRC now owns 2,716 shares of the asset manager's stock valued at $105,000 after purchasing an additional 1,706 shares during the period.

About Encore Capital Group

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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