Encore Capital Group (NASDAQ:ECPG) Sets New 1-Year High - What's Next?

Key Points

• Encore Capital's shares hit a new 52-week high of $79.75 (last $79.63) on volume of about 143,143 shares, trading up roughly 1.6% intraday.
• The company posted a strong quarter, reporting EPS $3.37 vs. $2.20 expected and revenue of $473.6M (up 78.3% YoY), with analysts forecasting FY EPS of 5.09.
• Analysts are mostly positive — one Strong Buy, four Buy and one Hold — giving an overall Buy consensus and an average target price of $75.50, though some firms have higher targets (Citizens Jmp at $90).

Encore Capital Group Inc (NASDAQ:ECPG - Get Free Report) shares hit a new 52-week high on Tuesday . The company traded as high as $79.75 and last traded at $79.6340, with a volume of 143143 shares changing hands. The stock had previously closed at $78.28.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the stock. Wall Street Zen lowered shares of Encore Capital Group from a "strong-buy" rating to a "buy" rating in a research report on Saturday, March 28th. 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 increased their price target on Encore Capital Group from $75.00 to $90.00 and gave the company a "market outperform" rating in a report on Thursday, February 26th. Zacks Research upgraded Encore Capital Group from a "hold" rating to a "strong-buy" rating in a research note on Friday, February 27th. Finally, Citigroup restated an "outperform" rating on shares of Encore Capital Group in a report on Tuesday, January 20th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Buy" and an average target price of $75.50.

Encore Capital Group Trading Up 1.6%

The company has a market cap of $1.70 billion, a P/E ratio of 7.26 and a beta of 1.26. The company has a current ratio of 0.68, a quick ratio of 0.68 and a debt-to-equity ratio of 4.10. The business has a 50 day moving average price of $66.01 and a 200-day moving average price of $55.64.

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

Insider Buying and Selling at Encore Capital Group

In related news, insider Ryan B. Bell sold 7,240 shares of the business's stock in a transaction that occurred on Monday, March 2nd. The stock was sold at an average price of $69.04, for a total transaction 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. The trade was a 13.07% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 2.54% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Allworth Financial LP boosted its position in shares of 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 period. SG Americas Securities LLC raised its stake in shares of Encore Capital Group by 0.5% in the fourth quarter. SG Americas Securities LLC now owns 66,825 shares of the asset manager's stock valued at $3,632,000 after buying an additional 326 shares during the period. Rhumbline Advisers grew its holdings in Encore Capital Group by 0.5% during the 3rd quarter. Rhumbline Advisers now owns 70,836 shares of the asset manager's stock valued at $2,957,000 after buying an additional 367 shares in the last quarter. Harbor Capital Advisors Inc. increased its position in shares of Encore Capital Group by 5.6% during the 3rd quarter. Harbor Capital Advisors Inc. now owns 8,517 shares of the asset manager's stock valued at $355,000 after purchasing an additional 448 shares during the last quarter. Finally, EverSource Wealth Advisors LLC lifted its holdings in Encore Capital Group by 185.7% in the 4th quarter. EverSource Wealth Advisors LLC now owns 717 shares of the asset manager's stock worth $39,000 after buying an additional 466 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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