Encore Capital Group (NASDAQ:ECPG) Hits New 52-Week High - Still a Buy?

Key Points

• Encore Capital Group shares reached a new 52-week high, trading as high as $101.80 and last changing hands at $99.63. The stock has risen above its 50-day and 200-day moving averages.
• Analyst sentiment remains positive but mixed: five analysts rate the stock Buy and one rates it Hold, producing a “Moderate Buy” consensus, though the $89.75 average price target is below the current price.
• Encore exceeded quarterly expectations with EPS of $2.81 versus the $2.67 estimate and revenue of $491.87 million versus $455.10 million expected. Revenue increased 11.3% year over year, and management provided fiscal 2026 EPS guidance of $13.00 to $14.00.

Encore Capital Group Inc (NASDAQ:ECPG - Get Free Report)'s stock price reached a new 52-week high during mid-day trading on Monday . The company traded as high as $101.80 and last traded at $99.63, with a volume of 377372 shares. The stock had previously closed at $100.20.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on ECPG. Weiss Ratings raised shares of Encore Capital Group from a "hold (c)" rating to a "buy (b-)" rating in a report on Monday, August 3rd. Zacks Research cut shares of Encore Capital Group from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 6th. Citigroup reiterated a "market outperform" rating on shares of Encore Capital Group in a report on Wednesday, June 17th. Citizens Jmp raised 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 report on Wednesday, June 17th. Finally, Wall Street Zen lowered shares of Encore Capital Group from a "strong-buy" rating to a "hold" rating in a research report on Saturday, May 9th. Five equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $89.75.

Encore Capital Group Stock Performance

The firm has a market capitalization of $2.13 billion, a PE ratio of 7.58 and a beta of 1.27. The company has a debt-to-equity ratio of 3.87, a current ratio of 0.96 and a quick ratio of 0.96. The firm has a fifty day moving average price of $88.29 and a 200 day moving average price of $76.64.

Encore Capital Group (NASDAQ:ECPG - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The asset manager reported $2.81 earnings per share for the quarter, beating analysts' consensus estimates of $2.67 by $0.14. The business 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%.Encore Capital Group's revenue for the quarter was up 11.3% on a year-over-year basis. During the same quarter last year, the company 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 Inc will post 13.52 earnings per share for the current fiscal year.

Insider Activity at Encore Capital Group

In other news, insider John Yung sold 2,000 shares of Encore Capital Group stock in a transaction that occurred 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 transaction, the insider directly owned 64,570 shares of the company's stock, valued at $5,299,905.60. This trade represents a 3.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 3.00% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Encore Capital Group

A number of large investors have recently made changes to their positions in the company. Allworth Financial LP increased its position in shares of Encore Capital Group by 29.1% during the fourth 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. EverSource Wealth Advisors LLC lifted its position 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 worth $39,000 after purchasing an additional 466 shares during the period. IFP Advisors Inc lifted its position 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 worth $27,000 after purchasing an additional 467 shares during the period. Wedge Capital Management L L P NC boosted its stake in Encore Capital Group by 5.1% during the second quarter. Wedge Capital Management L L P NC now owns 11,612 shares of the asset manager's stock worth $1,083,000 after buying an additional 565 shares in the last quarter. Finally, Carnegie Investment Counsel boosted its stake in Encore Capital Group by 2.2% during the first quarter. Carnegie Investment Counsel now owns 27,308 shares of the asset manager's stock worth $1,915,000 after buying an additional 582 shares in the last quarter.

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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