EZCORP (NASDAQ:EZPW) Shares Gap Up After Earnings Beat

Key Points

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Shares of EZCORP, Inc. (NASDAQ:EZPW - Get Free Report) gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $13.32, but opened at $14.32. EZCORP shares last traded at $14.66, with a volume of 317,158 shares.

The credit services provider reported $0.33 earnings per share for the quarter, beating the consensus estimate of $0.23 by $0.10. EZCORP had a return on equity of 11.85% and a net margin of 7.96%. The firm had revenue of $310.98 million for the quarter, compared to analyst estimates of $302.25 million.

Analysts Set New Price Targets

Several brokerages have issued reports on EZPW. Wall Street Zen upgraded EZCORP from a "buy" rating to a "strong-buy" rating in a report on Saturday, June 14th. Canaccord Genuity Group restated a "buy" rating and issued a $25.00 price target on shares of EZCORP in a report on Friday. BTIG Research started coverage on EZCORP in a report on Wednesday, May 14th. They issued a "neutral" rating for the company. Finally, Stephens reiterated an "equal weight" rating and set a $17.00 price objective on shares of EZCORP in a report on Tuesday, May 20th. Two investment analysts have rated the stock with a hold rating, two have assigned a buy rating and two have assigned a strong buy rating to the company. According to MarketBeat.com, EZCORP has an average rating of "Buy" and a consensus price target of $18.50.

Insider Activity

In related news, COO John Blair Jr. Powell sold 42,500 shares of the business's stock in a transaction on Thursday, May 8th. The stock was sold at an average price of $14.55, for a total transaction of $618,375.00. Following the sale, the chief operating officer owned 189,483 shares in the company, valued at $2,756,977.65. The trade was a 18.32% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. In the last 90 days, insiders sold 86,000 shares of company stock valued at $1,220,010. Company insiders own 2.13% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Divisadero Street Capital Management LP increased its holdings in EZCORP by 1,699.2% during the 4th quarter. Divisadero Street Capital Management LP now owns 1,246,445 shares of the credit services provider's stock worth $15,232,000 after purchasing an additional 1,177,166 shares in the last quarter. Boston Partners grew its holdings in shares of EZCORP by 289.7% in the first quarter. Boston Partners now owns 1,569,488 shares of the credit services provider's stock valued at $23,499,000 after acquiring an additional 1,166,758 shares in the last quarter. Fourth Sail Capital LP grew its holdings in shares of EZCORP by 503.6% in the first quarter. Fourth Sail Capital LP now owns 957,262 shares of the credit services provider's stock valued at $14,091,000 after acquiring an additional 798,679 shares in the last quarter. Invenomic Capital Management LP grew its holdings in shares of EZCORP by 317.1% in the fourth quarter. Invenomic Capital Management LP now owns 789,768 shares of the credit services provider's stock valued at $9,651,000 after acquiring an additional 600,435 shares in the last quarter. Finally, Cerity Partners LLC bought a new position in shares of EZCORP in the first quarter valued at approximately $8,310,000. 99.83% of the stock is owned by institutional investors and hedge funds.

EZCORP Trading Up 5.5%

The company has a quick ratio of 5.00, a current ratio of 6.31 and a debt-to-equity ratio of 0.52. The firm has a 50 day moving average of $13.63 and a 200 day moving average of $14.00. The firm has a market cap of $810.85 million, a PE ratio of 11.52 and a beta of 0.56.

About EZCORP

EZCORP, Inc provides pawn services in the United States and Latin America. The company operates through three segments: U.S. Pawn, Latin America Pawn, and Other Investments. The company offers pawn loans collateralized by tangible personal property, jewelry, consumer electronics, tools, sporting goods, and musical instruments.