Encore Capital Group (NASDAQ:ECPG) Stock Price Down 5.3% - Here's Why

Key Points

• Encore Capital Group's stock price fell by 5.3% during trading, with shares last traded at $41.32.
• The company reported $2.49 EPS for the last quarter, exceeding analysts' estimates of $1.44, and had a revenue of $442.12 million, up 24.4% from the previous year.
• Several hedge funds have recently increased their stakes in Encore Capital Group, indicating a growing interest from institutional investors.

Shares of Encore Capital Group Inc (NASDAQ:ECPG - Get Free Report) were down 5.3% during trading on Tuesday . The company traded as low as $42.61 and last traded at $41.32. Approximately 75,257 shares changed hands during mid-day trading, a decline of 74% from the average daily volume of 294,448 shares. The stock had previously closed at $43.61.

Encore Capital Group Trading Down 4.5%

The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 4.43. The stock's 50 day moving average price is $41.48 and its 200-day moving average price is $38.22. The stock has a market capitalization of $958.14 million, a P/E ratio of -11.13 and a beta of 1.52.

Encore Capital Group (NASDAQ:ECPG - Get Free Report) last posted its earnings results on Wednesday, August 6th. The asset manager reported $2.49 EPS for the quarter, beating analysts' consensus estimates of $1.44 by $1.05. The company had revenue of $442.12 million during the quarter, compared to analysts' expectations of $383.42 million. Encore Capital Group had a negative net margin of 6.07% and a positive return on equity of 19.61%. Encore Capital Group's revenue for the quarter was up 24.4% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.34 earnings per share. As a group, equities research analysts expect that Encore Capital Group Inc will post 5.09 earnings per share for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the company. Heartland Advisors Inc. purchased a new position in shares of Encore Capital Group during the 1st quarter worth $10,118,000. Stephens Investment Management Group LLC grew its holdings in shares of Encore Capital Group by 9.1% in the second quarter. Stephens Investment Management Group LLC now owns 1,248,831 shares of the asset manager's stock valued at $48,342,000 after purchasing an additional 104,367 shares in the last quarter. Wellington Management Group LLP lifted its holdings in Encore Capital Group by 13.0% during the 1st quarter. Wellington Management Group LLP now owns 790,392 shares of the asset manager's stock worth $27,095,000 after buying an additional 91,019 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its position in shares of 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 acquiring an additional 76,852 shares during the period. Finally, Allianz Asset Management GmbH raised its stake in shares of Encore Capital Group by 38.6% in the first quarter. Allianz Asset Management GmbH now owns 196,004 shares of the asset manager's stock valued at $6,719,000 after acquiring an additional 54,568 shares in the last quarter.

Encore Capital Group Company Profile

Encore Capital Group, Inc, a specialty finance company, provides debt recovery solutions and other related services for consumers across financial assets worldwide. The company purchases portfolios of defaulted consumer receivables at deep discounts to face value, as well as manages them by working with individuals as they repay their obligations and works toward financial recovery.

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