Encore Capital Group (NASDAQ:ECPG) Sets New 52-Week High - Should You Buy?

Key Points

• Encore Capital hit a new 52-week high — shares reached $85.57 (last $84.63) while Wall Street shows a consensus "Moderate Buy" rating and a $80.50 average price target after several firms raised targets/ratings.
• Quarterly earnings significantly beat expectations — Q EPS $3.37 vs. $2.20 estimate and revenue $473.6M vs. $423.1M, with revenue up 78.3% year-over-year and analysts projecting about 11.97 EPS for the fiscal year.
• Valuation and leverage warrant caution — market cap ≈ $1.81B and a low P/E of 7.7 are balanced by a high debt-to-equity ratio of 4.10, indicating notable financial leverage despite strong recent results.

Encore Capital Group Inc (NASDAQ:ECPG - Get Free Report)'s share price hit a new 52-week high on Tuesday . The company traded as high as $85.57 and last traded at $84.63, with a volume of 78123 shares. The stock had previously closed at $83.19.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on ECPG. Citigroup restated an "outperform" rating on shares of Encore Capital Group in a research note on Tuesday, January 20th. Citizens Jmp boosted their target price on shares of Encore Capital Group from $75.00 to $90.00 and gave the stock a "market outperform" rating in a research report on Thursday, February 26th. Zacks Research lowered shares of Encore Capital Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 27th. Northland Securities set a $70.00 target price on shares of Encore Capital Group in a research report on Thursday, January 22nd. Finally, Wall Street Zen raised shares of Encore Capital Group from a "buy" rating to a "strong-buy" rating in a research report on Saturday, April 18th. Four research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $80.50.

Encore Capital Group Price Performance

The firm has a market cap of $1.81 billion, a P/E ratio of 7.70 and a beta of 1.33. 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 stock's 50-day moving average is $72.44 and its 200-day moving average is $59.27.

Encore Capital Group (NASDAQ:ECPG - Get Free Report) last announced its quarterly earnings results on Wednesday, February 25th. The asset manager reported $3.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.20 by $1.17. The firm had revenue of $473.55 million for the quarter, compared to analyst estimates of $423.14 million. Encore Capital Group had a net margin of 14.52% and a return on equity of 28.19%. The business's revenue for the quarter was up 78.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($9.42) EPS. As a group, equities analysts anticipate that Encore Capital Group Inc will post 11.97 EPS for the current fiscal year.

Insider Transactions at Encore Capital Group

In other Encore Capital Group news, insider Ryan B. Bell sold 7,240 shares of the business'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 of the company's stock, valued at $3,325,656.80. The trade was a 13.07% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. 2.54% of the stock is owned by company insiders.

Institutional Investors Weigh In On Encore Capital Group

Institutional investors and 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% in the 4th quarter. IFP Advisors Inc now owns 494 shares of the asset manager's stock valued at $27,000 after buying an additional 467 shares during the period. EverSource Wealth Advisors LLC increased 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 valued at $39,000 after buying an additional 466 shares during the period. Allworth Financial LP increased its holdings in Encore Capital Group by 29.1% in the 4th quarter. Allworth Financial LP now owns 1,139 shares of the asset manager's stock valued at $62,000 after buying an additional 257 shares during the period. LSV Asset Management bought a new stake in Encore Capital Group in the 3rd quarter valued at $88,000. Finally, Tower Research Capital LLC TRC increased its holdings in Encore Capital Group by 168.9% in the 2nd quarter. Tower Research Capital LLC TRC now owns 2,716 shares of the asset manager's stock valued at $105,000 after buying an additional 1,706 shares during the period.

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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