Atlanticus (NASDAQ:ATLC) Stock Falls 7.3% After Analyst Downgrade

Key Points

• Atlanticus shares fell 7.3% after Wall Street Zen downgraded the stock from Strong Buy to Buy, closing at $84.57 versus the prior close of $91.23. Trading volume was 32% below the average session volume.
• Analyst sentiment remains broadly positive: the stock has a consensus “Moderate Buy” rating and an average price target of $124.86, with one Strong Buy, five Buy, and two Hold ratings.
• Atlanticus narrowly beat quarterly earnings expectations, reporting $3.00 per share against a $2.99 estimate; revenue of $775.85 million also slightly exceeded forecasts.

Atlanticus Holdings Corporation (NASDAQ:ATLC - Get Free Report) dropped 7.3% during trading on Monday after Wall Street Zen downgraded the stock from a strong-buy rating to a buy rating. The stock traded as low as $84.16 and last traded at $84.57. 76,181 shares were traded during trading, a decline of 32% from the average session volume of 111,490 shares. The stock had previously closed at $91.23.

A number of other equities analysts also recently commented on the stock. Zacks Research downgraded shares of Atlanticus from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 13th. Texas Capital raised Atlanticus from a "hold" rating to a "strong-buy" rating in a report on Monday, July 13th. B. Riley Financial restated a "buy" rating on shares of Atlanticus in a research note on Thursday, September 3rd. Citigroup reiterated an "outperform" rating on shares of Atlanticus in a report on Thursday, July 16th. Finally, HSBC set a $144.00 target price on Atlanticus in a research report on Monday, July 13th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $124.86.

Hedge Funds Weigh In On Atlanticus

Several large investors have recently bought and sold shares of ATLC. Diversified Trust Co grew its position in Atlanticus by 19.3% during the 3rd quarter. Diversified Trust Co now owns 2,616 shares of the credit services provider's stock worth $229,000 after purchasing an additional 424 shares during the last quarter. Pinnacle Wealth Planning Services Inc. acquired a new stake in Atlanticus during the 3rd quarter worth approximately $87,000. Inspire Investing LLC lifted its position in Atlanticus by 12.3% during the 3rd quarter. Inspire Investing LLC now owns 27,401 shares of the credit services provider's stock worth $2,398,000 after acquiring an additional 3,006 shares during the period. USA Financial Formulas purchased a new position in shares of Atlanticus in the 3rd quarter valued at approximately $39,000. Finally, Engineers Gate Manager LP purchased a new position in shares of Atlanticus in the 2nd quarter valued at approximately $669,000. Institutional investors and hedge funds own 14.15% of the company's stock.

Atlanticus Stock Performance

The firm has a market cap of $1.28 billion, a price-to-earnings ratio of 7.45 and a beta of 1.80. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 0.99. The stock has a fifty day moving average price of $92.28 and a 200-day moving average price of $81.10.

Atlanticus (NASDAQ:ATLC - Get Free Report) last issued its quarterly earnings results on Thursday, November 5th. The credit services provider reported $3.00 earnings per share for the quarter, topping the consensus estimate of $2.99 by $0.01. The firm had revenue of $775.85 million during the quarter, compared to the consensus estimate of $775.08 million. Atlanticus had a return on equity of 29.05% and a net margin of 7.65%. On average, analysts expect that Atlanticus Holdings Corporation will post 9.73 earnings per share for the current fiscal year.

About Atlanticus

Atlanticus Holdings Corporation is a financial technology and services company that provides credit and related financial products to consumers, primarily in the United States. Through its subsidiaries, the company focuses on serving consumers who may have limited access to traditional forms of credit.

Atlanticus operates businesses offering private-label and general-purpose credit products, including credit cards and installment loans. Its offerings are distributed through direct-to-consumer channels and partnerships with merchants, giving consumers access to financing for purchases and other personal needs.

The company also operates an auto finance business that provides vehicle-related lending solutions.

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