Encore Capital Group (NASDAQ:ECPG) Rating Increased to Strong-Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded Encore Capital Group to a "strong‑buy" from "buy", contributing to a MarketBeat consensus of "Buy" (one Strong Buy, four Buy, one Hold) and an average analyst target of $75.50 while the stock trades near $80.75 close to its 12‑month high.
• Encore posted a sizable earnings beat — quarterly EPS $3.37 vs. $2.20 estimate and revenue $473.6M vs. $423.1M, with revenue up 78.3% year‑over‑year and analysts forecasting about $5.09 EPS for the year.
• Insider sold shares amid rising institutional interest: an insider sold 7,240 shares (insiders own 2.54%), even as firms like AQR and Jane Street markedly increased holdings; the company also shows high leverage with a debt‑to‑equity ratio of 4.10.

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

Other equities analysts have also issued research reports about the stock. Citigroup reissued an "outperform" rating on shares of Encore Capital Group in a research report on Tuesday, January 20th. Truist Financial lifted their price target on shares of Encore Capital Group from $59.00 to $80.00 and gave the company a "buy" rating in a research report on Thursday, February 26th. Weiss Ratings raised shares of Encore Capital Group from a "sell (d-)" rating to a "hold (c-)" rating in a research report on Friday, February 27th. Citizens Jmp lifted 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 report on Thursday, February 26th. Finally, Northland Securities set a $70.00 price objective on shares of Encore Capital Group in a research note on Thursday, January 22nd. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Buy" and an average target price of $75.50.

Encore Capital Group Trading Up 2.6%

NASDAQ:ECPG opened at $80.75 on Friday. Encore Capital Group has a 12 month low of $29.69 and a 12 month high of $81.77. The firm has a market cap of $1.73 billion, a price-to-earnings ratio of 7.37 and a beta of 1.26. The company has a quick ratio of 0.68, a current ratio of 0.68 and a debt-to-equity ratio of 4.10. The company's 50 day moving average is $67.86 and its 200-day moving average is $56.47.

Encore Capital Group (NASDAQ:ECPG - Get Free Report) last released its quarterly earnings results on Wednesday, February 25th. The asset manager reported $3.37 EPS for the quarter, beating analysts' consensus estimates of $2.20 by $1.17. Encore Capital Group had a net margin of 14.52% and a return on equity of 28.19%. The company had revenue of $473.55 million for the quarter, compared to analyst estimates of $423.14 million. During the same quarter last year, the firm posted ($9.42) earnings per share. The company's quarterly revenue was up 78.3% compared to the same quarter last year. Equities analysts anticipate that Encore Capital Group will post 5.09 EPS for the current year.

Insider Activity

In other news, insider Ryan B. Bell sold 7,240 shares of the firm's stock in a transaction 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 sale, the insider owned 48,170 shares in the company, 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 SEC, which is accessible through this hyperlink. Insiders own 2.54% of the company's stock.

Institutional Investors Weigh In On Encore Capital Group

Several hedge funds and other institutional investors have recently modified their holdings of ECPG. AQR Capital Management LLC grew its stake in shares of Encore Capital Group by 78.0% in the fourth quarter. AQR Capital Management LLC now owns 412,498 shares of the asset manager's stock worth $22,419,000 after acquiring an additional 180,733 shares during the last quarter. Hillsdale Investment Management Inc. acquired a new stake in shares of Encore Capital Group in the fourth quarter worth $7,453,000. Jane Street Group LLC grew its stake in shares of Encore Capital Group by 488.1% in the fourth quarter. Jane Street Group LLC now owns 154,128 shares of the asset manager's stock worth $8,377,000 after acquiring an additional 127,920 shares during the last quarter. First Trust Advisors LP boosted its stake in Encore Capital Group by 379.7% during the third quarter. First Trust Advisors LP now owns 98,817 shares of the asset manager's stock worth $4,125,000 after buying an additional 78,217 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its stake in Encore Capital Group by 476.6% during the second quarter. Arrowstreet Capital Limited Partnership now owns 92,978 shares of the asset manager's stock worth $3,599,000 after buying an additional 76,852 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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