Northland Securities Has Optimistic View of ECPG Q3 Earnings

Key Points

• Northland Securities raised its Q3 2026 EPS estimate for Encore Capital Group to $3.20 from $3.04, while projecting FY2026 EPS of $13.50.
• Encore’s latest quarter exceeded consensus expectations, with EPS of $2.81 versus $2.67 expected and revenue of $491.87 million versus $455.10 million; revenue increased 11.3% year over year.
• Analyst sentiment remains broadly positive: five analysts rate ECPG a Buy and one rates it a Hold, giving the stock a “Moderate Buy” consensus and an average price target of $89.75.

Encore Capital Group Inc (NASDAQ:ECPG - Free Report) - Equities researchers at Northland Securities lifted their Q3 2026 earnings per share estimates for shares of Encore Capital Group in a research report issued to clients and investors on Wednesday, August 5th. Northland Securities analyst M. Grondahl now anticipates that the asset manager will post earnings of $3.20 per share for the quarter, up from their prior estimate of $3.04. The consensus estimate for Encore Capital Group's current full-year earnings is $13.01 per share. Northland Securities also issued estimates for Encore Capital Group's FY2026 earnings at $13.50 EPS, Q2 2027 earnings at $3.64 EPS, Q3 2027 earnings at $3.79 EPS and Q4 2027 earnings at $3.96 EPS.

Several other brokerages have also recently weighed in on ECPG. Zacks Research cut Encore Capital Group from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 6th. Wall Street Zen lowered shares of Encore Capital Group from a "strong-buy" rating to a "hold" rating in a research note on Saturday, May 9th. Weiss Ratings upgraded shares of Encore Capital Group from a "hold (c)" rating to a "buy (b-)" rating in a report on Monday. Truist Financial raised their price target on shares of Encore Capital Group from $105.00 to $112.00 and gave the company a "buy" rating in a research report on Thursday. Finally, Citizens Jmp boosted their price target on shares of Encore Capital Group from $108.00 to $115.00 and gave the stock a "market outperform" rating in a report on Wednesday, June 17th. Five equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $89.75.

Encore Capital Group Trading Up 5.6%

Shares of Encore Capital Group stock opened at $97.88 on Friday. The company has a market capitalization of $2.10 billion, a P/E ratio of 7.41 and a beta of 1.27. The stock has a fifty day simple moving average of $87.88 and a 200 day simple moving average of $76.33. Encore Capital Group has a 12-month low of $37.74 and a 12-month high of $101.19. The company has a current ratio of 0.90, a quick ratio of 0.90 and a debt-to-equity ratio of 3.90.

Encore Capital Group (NASDAQ:ECPG - Get Free Report) last posted its earnings results on Wednesday, August 5th. The asset manager reported $2.81 earnings per share for the quarter, beating analysts' consensus estimates of $2.67 by $0.14. The company had revenue of $491.87 million for the quarter, compared to analyst estimates of $455.10 million. Encore Capital Group had a return on equity of 30.52% and a net margin of 15.86%.The company's revenue for the quarter was up 11.3% on a year-over-year basis. During the same quarter last year, the company earned $2.49 earnings per share. Encore Capital Group has set its FY 2026 guidance at 13.000-14.000 EPS.

Insider Activity

In other news, insider John Yung sold 2,000 shares of the firm's stock in a transaction on Wednesday, June 10th. The stock was 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 of the company's stock, valued at $5,299,905.60. This trade represents a 3.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 3.00% of the stock is currently owned by corporate insiders.

Institutional Trading of Encore Capital Group

Large investors have recently added to or reduced their stakes in the stock. AQR Capital Management LLC boosted its stake in Encore Capital Group by 78.0% in the fourth quarter. AQR Capital Management LLC now owns 412,498 shares of the asset manager's stock valued at $22,419,000 after acquiring an additional 180,733 shares during the last quarter. Heartland Advisors Inc. increased its stake in shares of Encore Capital Group by 0.7% during the 1st quarter. Heartland Advisors Inc. now owns 388,425 shares of the asset manager's stock worth $27,236,000 after purchasing an additional 2,595 shares during the last quarter. Barclays PLC raised its holdings in shares of Encore Capital Group by 11.8% in the 4th quarter. Barclays PLC now owns 371,916 shares of the asset manager's stock worth $20,214,000 after purchasing an additional 39,214 shares during the period. Arrowstreet Capital Limited Partnership raised its holdings in shares of Encore Capital Group by 658.2% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 334,018 shares of the asset manager's stock worth $23,421,000 after purchasing an additional 289,964 shares during the period. Finally, Bridgeway Capital Management LLC lifted its stake in Encore Capital Group by 2.4% in the fourth quarter. Bridgeway Capital Management LLC now owns 170,002 shares of the asset manager's stock valued at $9,240,000 after purchasing an additional 3,951 shares during the last quarter.

Key Headlines Impacting Encore Capital Group

Here are the key news stories impacting Encore Capital Group this week:

• Positive Sentiment: Revenue and collections exceeded expectations. Second-quarter revenue rose 11.3% year over year to $491.87 million, above the $455.10 million consensus estimate. Record global collections and strong execution in the U.S. helped drive the results. ECPG Q2 Earnings Miss Despite Y/Y Revenue Growth & Record Collections
• Positive Sentiment: Profit increased year over year. Encore reported second-quarter adjusted earnings of $2.81 per share, up from $2.49 a year earlier and above the $2.67 consensus cited by several reports. However, the result was below Zacks’ $3.07 estimate, creating a mixed earnings signal. Encore Capital Group Q2 Earnings Results
• Positive Sentiment: Full-year outlook supports the bullish reaction. Management issued 2026 EPS guidance of $13.00–$14.00, compared with a prior consensus estimate of $13.00. The updated outlook implies continued earnings momentum and was described as higher or supportive of a stronger 2026 outlook. Encore Capital Group Announces Second Quarter 2026 Financial Results
• Positive Sentiment: Truist raised its valuation target. Truist Financial increased its price target for ECPG from $105 to $112 and maintained a “Buy” rating, reinforcing positive analyst sentiment following the earnings update. Truist Raises Encore Capital Price Target
• Negative Sentiment: Investors should note the earnings-estimate shortfall. Although EPS exceeded the $2.67 consensus referenced by some data providers, it missed Zacks’ $3.07 estimate. This could limit upside if future results fail to meet elevated expectations.

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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