Encore Capital Group Inc $ECPG Position Raised by Arrowstreet Capital Limited Partnership

Key Points

• Arrowstreet Capital significantly increased its Encore Capital Group stake by 658.2% in the first quarter, owning 334,018 shares worth approximately $23.4 million, or 1.56% of the company.
• Analyst sentiment remains favorable, with four Buy ratings and two Holds producing a “Moderate Buy” consensus and an average price target of $88.00. Recent targets from Truist and Citizens JMP were raised to $105 and $115, respectively.
• Encore reported strong quarterly results, posting adjusted earnings of $3.86 per share versus a $3.02 consensus and revenue of $475.4 million, up 21% year over year. Shares opened at $93.83, near the company’s 52-week high of $98.02.

Arrowstreet Capital Limited Partnership grew its position in Encore Capital Group Inc (NASDAQ:ECPG - Free Report) by 658.2% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 334,018 shares of the asset manager's stock after purchasing an additional 289,964 shares during the period. Arrowstreet Capital Limited Partnership owned approximately 1.56% of Encore Capital Group worth $23,421,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in ECPG. IFP Advisors Inc lifted its holdings in shares of Encore Capital Group by 1,729.6% during the fourth quarter. IFP Advisors Inc now owns 494 shares of the asset manager's stock valued at $27,000 after purchasing an additional 467 shares during the last quarter. EverSource Wealth Advisors LLC boosted its holdings in shares of Encore Capital Group by 185.7% in the fourth 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. Allworth Financial LP boosted its holdings 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 worth $62,000 after buying an additional 257 shares during the period. Tower Research Capital LLC TRC raised its stake in Encore Capital Group by 168.9% during the 2nd quarter. Tower Research Capital LLC TRC now owns 2,716 shares of the asset manager's stock valued at $105,000 after purchasing an additional 1,706 shares during the period. Finally, Virtus Advisers LLC acquired a new position in Encore Capital Group during the third quarter valued at $143,000.

Wall Street Analyst Weigh In

ECPG has been the subject of several research reports. Truist Financial lifted their price target on Encore Capital Group from $100.00 to $105.00 and gave the company a "buy" rating in a report on Thursday, May 7th. Citigroup reaffirmed a "market outperform" rating on shares of Encore Capital Group in a research report on Wednesday, June 17th. Weiss Ratings cut shares of Encore Capital Group from a "hold (c+)" rating to a "hold (c)" rating in a research note on Monday, June 8th. Citizens Jmp raised their target price on Encore Capital Group from $108.00 to $115.00 and gave the stock a "market outperform" rating in a research report on Wednesday, June 17th. Finally, Zacks Research downgraded shares of Encore Capital Group from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 6th. Four investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $88.00.

Insider Activity

In related news, insider John Yung sold 2,000 shares of the firm's stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $82.08, for a total value of $164,160.00. Following the transaction, the insider owned 64,570 shares in the company, valued at $5,299,905.60. This trade represents a 3.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 3.00% of the stock is owned by company insiders.

Encore Capital Group Price Performance

Shares of Encore Capital Group stock opened at $93.83 on Thursday. The company has a current ratio of 0.90, a quick ratio of 0.90 and a debt-to-equity ratio of 3.90. The stock has a market capitalization of $2.01 billion, a price-to-earnings ratio of 7.28 and a beta of 1.27. Encore Capital Group Inc has a 1-year low of $35.67 and a 1-year high of $98.02. The firm's 50-day moving average price is $86.18 and its two-hundred day moving average price is $74.67.

Encore Capital Group (NASDAQ:ECPG - Get Free Report) last posted its earnings results on Wednesday, May 6th. The asset manager reported $3.86 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.02 by $0.84. The company had revenue of $475.41 million during the quarter, compared to analysts' expectations of $446.26 million. Encore Capital Group had a net margin of 16.00% and a return on equity of 30.70%. Encore Capital Group's quarterly revenue was up 21.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.93 earnings per share. Encore Capital Group has set its FY 2026 guidance at 13.000-13.000 EPS. On average, equities analysts predict that Encore Capital Group Inc will post 13.01 earnings per share for the current fiscal year.

Encore Capital Group 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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