Encore Capital Group (NASDAQ:ECPG) Shares Down 8.9% - Here's Why

Key Points

• Encore shares fell 8.9% to about $114 on Friday, after recently surging 26.3% following its earnings release; the pullback may reflect near-term consolidation.
• Q3 results topped estimates: EPS was $5.57 versus $3.35 expected, while revenue reached $544.5 million, up 18.3% year over year. Record collections helped the company raise its 2026 EPS outlook to $15.50–$16 and increase its portfolio-purchase forecast.
• Analysts generally remained positive, with Truist and Citizens JMP raising price targets to $122 and $140, respectively; MarketBeat reported a “Moderate Buy” consensus and an average target of $128.67.

Encore Capital Group Inc (NASDAQ:ECPG - Get Free Report)'s share price was down 8.9% during trading on Friday. The company traded as low as $114.00 and last traded at $114.9350. 100,383 shares traded hands during trading, a decline of 67% from the average daily volume of 304,309 shares. The stock had previously closed at $126.17.

Trending Headlines about Encore Capital Group

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

• Positive Sentiment: Q3 results beat estimates: Encore reported earnings of $5.57 per share, versus estimates near $3.35, and revenue of $544.5 million, ahead of expectations of $466.8 million. Revenue grew 18.3% year over year. Encore Capital Group Announces Third Quarter 2026 Financial Results
• Positive Sentiment: Record collections and stronger outlook: Global collections rose 14% to a record $754 million. The company raised its 2026 EPS outlook to $15.50–$16 and increased its expected portfolio purchases to $1.5–$1.55 billion, supporting the bullish reaction to results. Encore Capital raises 2026 outlook
• Positive Sentiment: Analyst targets moved higher: Truist raised its target to $122 and kept a Buy rating; Citizens JMP raised its target to $140 and maintained Market Outperform. Northland Securities also increased several 2027 quarterly earnings estimates. Citizens JMP raises ECPG price target
• Neutral Sentiment: News coverage described a 26.3% surge following the earnings release, so some near-term weakness could be a consolidation after a rapid advance rather than a change in the company’s outlook. Encore Capital stock jumps on Q3 earnings
• Negative Sentiment: Northland lowered its Q4 2026 EPS estimate to $3.52 from $3.64, a modest counterpoint to its upward revisions for 2027 quarters. Encore Capital analyst estimates

Analyst Ratings Changes

ECPG has been the topic of several analyst reports. Citigroup reaffirmed a "market outperform" rating on shares of Encore Capital Group in a report on Thursday. Truist Financial raised their price objective on shares of Encore Capital Group from $112.00 to $122.00 and gave the company a "buy" rating in a research report on Thursday. Citizens Jmp lifted their price objective on Encore Capital Group from $115.00 to $140.00 and gave the company a "market outperform" rating in a report on Thursday. Northland Securities set a $124.00 target price on Encore Capital Group in a research report on Tuesday, October 13th. Finally, Zacks Research downgraded Encore Capital Group from a "strong-buy" rating to a "hold" rating in a research note on Monday, October 5th. Four analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, Encore Capital Group currently has an average rating of "Moderate Buy" and an average price target of $128.67.

Encore Capital Group Trading Down 9.2%

The company has a debt-to-equity ratio of 3.87, a quick ratio of 0.96 and a current ratio of 0.96. The stock has a market cap of $2.43 billion, a price-to-earnings ratio of 7.34 and a beta of 1.29. The business has a fifty day simple moving average of $99.61 and a 200 day simple moving average of $83.92.

Encore Capital Group (NASDAQ:ECPG - Get Free Report) last issued its quarterly earnings results on Wednesday, November 4th. The asset manager reported $5.57 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.35 by $2.22. The firm had revenue of $544.54 million for the quarter, compared to analyst estimates of $466.80 million. Encore Capital Group had a return on equity of 34.07% and a net margin of 17.67%. The firm's quarterly revenue was up 18.3% on a year-over-year basis. During the same period last year, the company earned $3.17 EPS. As a group, equities analysts anticipate that Encore Capital Group Inc will post 13.52 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Ashton Thomas Private Wealth LLC lifted its position in Encore Capital Group by 4.1% in the 3rd quarter. Ashton Thomas Private Wealth LLC now owns 2,825 shares of the asset manager's stock valued at $267,000 after purchasing an additional 110 shares during the last quarter. Farther Finance Advisors LLC grew its position in Encore Capital Group by 40.4% in the 3rd quarter. Farther Finance Advisors LLC now owns 386 shares of the asset manager's stock worth $36,000 after purchasing an additional 111 shares during the last quarter. Allworth Financial LP increased its stake in shares of Encore Capital Group by 12.1% in the second quarter. Allworth Financial LP now owns 1,461 shares of the asset manager's stock valued at $136,000 after purchasing an additional 158 shares during the period. Signaturefd LLC increased its stake in shares of Encore Capital Group by 185.9% in the third quarter. Signaturefd LLC now owns 366 shares of the asset manager's stock valued at $35,000 after purchasing an additional 238 shares during the period. Finally, GAMMA Investing LLC increased its stake in shares of Encore Capital Group by 26.8% in the third quarter. GAMMA Investing LLC now owns 1,339 shares of the asset manager's stock valued at $126,000 after purchasing an additional 283 shares during the period.

Encore Capital Group Company Profile

Encore Capital Group, Inc is a specialty finance company that purchases portfolios of charged-off consumer receivables and provides debt recovery and management services. Through its operating businesses, the company works with consumers to resolve outstanding obligations through payment plans and other repayment arrangements.

Encore serves consumers and creditors across multiple markets, including the United States, the United Kingdom and other European countries. Its major operating platforms include Midland Credit Management in the United States and Cabot Credit Management in Europe.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.