Heartland Advisors Inc. Invests $10.12 Million in Encore Capital Group Inc (NASDAQ:ECPG)

Key Points

• Heartland Advisors Inc. has acquired a 1.26% stake in Encore Capital Group Inc., purchasing 295,150 shares valued at approximately $10.1 million during Q1.
• Analysts have upgraded Encore Capital Group's stock from a "sell" to a "hold" rating, with a consensus rating of "Buy" and an average target price of $62.67.
• In its latest quarterly earnings report, Encore Capital Group posted an EPS of $1.93, exceeding analysts' estimates by $0.69, with revenues increasing 19.6% year-over-year.

Heartland Advisors Inc. purchased a new stake in shares of Encore Capital Group Inc (NASDAQ:ECPG - Free Report) during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund purchased 295,150 shares of the asset manager's stock, valued at approximately $10,118,000. Heartland Advisors Inc. owned approximately 1.26% of Encore Capital Group at the end of the most recent reporting period.

Other hedge funds have also recently modified their holdings of the company. Bank of America Corp DE lifted its holdings in shares of Encore Capital Group by 13.9% in the fourth quarter. Bank of America Corp DE now owns 67,268 shares of the asset manager's stock worth $3,213,000 after buying an additional 8,213 shares in the last quarter. Illinois Municipal Retirement Fund lifted its holdings in shares of Encore Capital Group by 10.7% in the first quarter. Illinois Municipal Retirement Fund now owns 14,056 shares of the asset manager's stock worth $482,000 after buying an additional 1,358 shares in the last quarter. Man Group plc purchased a new position in shares of Encore Capital Group in the fourth quarter worth $405,000. Deutsche Bank AG lifted its holdings in shares of Encore Capital Group by 44.4% in the fourth quarter. Deutsche Bank AG now owns 21,535 shares of the asset manager's stock worth $1,029,000 after buying an additional 6,619 shares in the last quarter. Finally, GAMMA Investing LLC lifted its holdings in shares of Encore Capital Group by 2,834.0% in the first quarter. GAMMA Investing LLC now owns 6,308 shares of the asset manager's stock worth $216,000 after buying an additional 6,093 shares in the last quarter.

Encore Capital Group Price Performance

Encore Capital Group stock traded down $0.05 during mid-day trading on Wednesday, reaching $37.51. 73,724 shares of the company's stock traded hands, compared to its average volume of 283,747. The company has a market cap of $875.86 million, a price-to-earnings ratio of -7.70 and a beta of 1.59. The stock has a 50 day moving average of $38.93 and a two-hundred day moving average of $39.42. The company has a quick ratio of 0.80, a current ratio of 0.80 and a debt-to-equity ratio of 4.63. Encore Capital Group Inc has a 12-month low of $26.45 and a 12-month high of $51.77.

Encore Capital Group (NASDAQ:ECPG - Get Free Report) last released its quarterly earnings results on Wednesday, May 7th. The asset manager reported $1.93 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.24 by $0.69. The company had revenue of $392.78 million for the quarter, compared to the consensus estimate of $374.49 million. Encore Capital Group had a negative net margin of 8.38% and a positive return on equity of 16.18%. Encore Capital Group's revenue was up 19.6% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.95 earnings per share. Equities analysts forecast that Encore Capital Group Inc will post 5.09 earnings per share for the current year.

Analysts Set New Price Targets

Separately, Wall Street Zen raised shares of Encore Capital Group from a "sell" rating to a "hold" rating in a report on Tuesday, May 13th. One analyst has rated the stock with a hold rating, three have assigned a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the company has a consensus rating of "Buy" and a consensus target price of $62.67.

About Encore Capital Group

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.