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

Key Points

• Encore Capital Group shares reached a new 52-week high of $98.02, last trading at $96.40, up from a prior close of $94.45. The stock has risen above its 50-day and 200-day moving averages.
• The company reported strong quarterly results, with adjusted EPS of $3.86 versus the $3.02 consensus estimate and revenue of $475.41 million, up 21% year over year. Analysts project approximately $13.01 in full-year EPS, compared with company guidance of $13.00.
• Analyst sentiment remains positive overall, with four Buy ratings and two Holds producing a “Moderate Buy” consensus, although some firms recently downgraded the stock to Hold. The average price target is $88, below its current trading level, while institutional investors have generally increased their holdings.

Encore Capital Group Inc (NASDAQ:ECPG - Get Free Report) shares reached a new 52-week high on Tuesday . The company traded as high as $98.02 and last traded at $96.40, with a volume of 29992 shares trading hands. The stock had previously closed at $94.45.

Analyst Upgrades and Downgrades

ECPG has been the subject of a number of recent analyst reports. Zacks Research lowered Encore Capital Group from a "strong-buy" rating to a "hold" rating in a report on Monday, July 6th. Wall Street Zen downgraded Encore Capital Group from a "strong-buy" rating to a "hold" rating in a research note on Saturday, May 9th. Citizens Jmp boosted their price target on Encore Capital Group from $108.00 to $115.00 and gave the stock a "market outperform" rating in a research report on Wednesday, June 17th. Weiss Ratings cut Encore Capital Group from a "hold (c+)" rating to a "hold (c)" rating in a research note on Monday, June 8th. Finally, Citigroup reissued a "market outperform" rating on shares of Encore Capital Group in a report on Wednesday, June 17th. Four research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, Encore Capital Group currently has a consensus rating of "Moderate Buy" and an average target price of $88.00.

Encore Capital Group Stock Up 1.5%

The company has a debt-to-equity ratio of 3.90, a current ratio of 0.90 and a quick ratio of 0.90. The firm has a market capitalization of $2.05 billion, a P/E ratio of 7.42 and a beta of 1.27. The firm's fifty day moving average price is $85.61 and its 200-day moving average price is $74.13.

Encore Capital Group (NASDAQ:ECPG - Get Free Report) last announced its earnings results on Wednesday, May 6th. The asset manager reported $3.86 EPS for the quarter, topping the consensus estimate of $3.02 by $0.84. The firm had revenue of $475.41 million for the quarter, compared to analysts' expectations of $446.26 million. Encore Capital Group had a return on equity of 30.70% and a net margin of 16.00%.The firm's quarterly revenue was up 21.0% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.93 earnings per share. Encore Capital Group has set its FY 2026 guidance at 13.000-13.000 EPS. As a group, equities research analysts forecast that Encore Capital Group Inc will post 13.01 earnings per share for the current year.

Insider Activity

In other news, insider John Yung sold 2,000 shares of the business's stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $82.08, for a total value of $164,160.00. Following the sale, the insider owned 64,570 shares of the company's stock, valued at approximately $5,299,905.60. The trade was a 3.00% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 3.00% of the company's stock.

Institutional Trading of Encore Capital Group

Institutional investors have recently modified their holdings of the company. Royal Bank of Canada raised its position in Encore Capital Group by 97.9% in the first quarter. Royal Bank of Canada now owns 33,620 shares of the asset manager's stock worth $1,153,000 after acquiring an additional 16,634 shares in the last quarter. AQR Capital Management LLC boosted its position in shares of Encore Capital Group by 263.0% during the 1st quarter. AQR Capital Management LLC now owns 68,860 shares of the asset manager's stock valued at $2,361,000 after purchasing an additional 49,892 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of Encore Capital Group by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 13,929 shares of the asset manager's stock worth $477,000 after purchasing an additional 612 shares during the last quarter. Empowered Funds LLC grew its stake in shares of Encore Capital Group by 2.0% in the 1st quarter. Empowered Funds LLC now owns 90,910 shares of the asset manager's stock worth $3,116,000 after purchasing an additional 1,806 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of Encore Capital Group by 7.8% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 78,465 shares of the asset manager's stock worth $2,690,000 after purchasing an additional 5,672 shares in the last quarter.

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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