Hennessy Advisors Inc. Makes New Investment in Encore Capital Group Inc $ECPG

Key Points

• Hennessy Advisors acquired 111,400 shares of Encore Capital Group in the second quarter, worth approximately $10.4 million and representing about 0.53% of the company.
• Analyst sentiment remains positive: Encore has a consensus “Buy” rating and an average price target of $89.75, although individual ratings ranged from “Hold” to “Strong Buy.”
• Encore reported stronger-than-expected quarterly results, with EPS of $2.81 and revenue of $491.87 million, up 11.3% year over year; the company issued fiscal 2026 EPS guidance of $13.00–$14.00.

Hennessy Advisors Inc. bought a new position in Encore Capital Group Inc (NASDAQ:ECPG - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm bought 111,400 shares of the asset manager's stock, valued at approximately $10,393,000. Hennessy Advisors Inc. owned about 0.53% of Encore Capital Group as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in ECPG. IFP Advisors Inc increased its position in shares of Encore Capital Group by 1,729.6% in the fourth quarter. IFP Advisors Inc now owns 494 shares of the asset manager's stock valued at $27,000 after acquiring an additional 467 shares during the period. EverSource Wealth Advisors LLC grew its stake 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 purchasing an additional 466 shares during the last quarter. USA Financial Formulas purchased a new position in Encore Capital Group during the 1st quarter valued at about $46,000. Allworth Financial LP increased its holdings in Encore Capital Group by 29.1% during the 4th quarter. Allworth Financial LP now owns 1,139 shares of the asset manager's stock valued at $62,000 after purchasing an additional 257 shares during the period. Finally, Public Employees Retirement System of Ohio bought a new position in Encore Capital Group during the 2nd quarter valued at approximately $89,000.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on ECPG shares. Wall Street Zen downgraded Encore Capital Group from a "strong-buy" rating to a "hold" rating in a report on Saturday, May 9th. Truist Financial lifted their price target on shares of Encore Capital Group from $105.00 to $112.00 and gave the company a "buy" rating in a report on Thursday, August 6th. Weiss Ratings raised shares of Encore Capital Group from a "hold (c)" rating to a "buy (b-)" rating in a research report on Monday, August 3rd. Zacks Research raised shares of Encore Capital Group from a "hold" rating to a "strong-buy" rating in a research report on Friday, August 7th. Finally, Citigroup restated a "market outperform" rating on shares of Encore Capital Group in a report on Tuesday, August 11th. One research analyst has rated the stock with a Strong Buy rating and five have given a Buy rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Buy" and a consensus price target of $89.75.

Encore Capital Group Stock Performance

Encore Capital Group stock opened at $98.94 on Friday. Encore Capital Group Inc has a twelve month low of $39.94 and a twelve month high of $104.98. The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 3.87. The company has a market capitalization of $2.10 billion, a P/E ratio of 7.49 and a beta of 1.27. The stock's 50 day moving average is $94.05 and its 200 day moving average is $81.17.

Encore Capital Group (NASDAQ:ECPG - Get Free Report) last released its earnings results on Wednesday, August 5th. The asset manager reported $2.81 EPS for the quarter, topping the consensus estimate of $2.67 by $0.14. Encore Capital Group had a return on equity of 29.83% and a net margin of 15.86%.The business had revenue of $491.87 million for the quarter, compared to the consensus estimate of $455.10 million. During the same period in the previous year, the company posted $2.49 earnings per share. The company's revenue for the quarter was up 11.3% compared to the same quarter last year. Encore Capital Group has set its FY 2026 guidance at 13.000-14.000 EPS. On average, equities research analysts predict that Encore Capital Group Inc will post 13.52 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Encore Capital Group news, insider John Yung sold 2,000 shares of the firm's stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $82.08, for a total transaction of $164,160.00. Following the completion of the sale, the insider directly owned 64,570 shares in the company, valued at approximately $5,299,905.60. This trade represents a 3.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 3.00% of the company's stock.

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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