Texas Capital Upgrades Atlanticus (NASDAQ:ATLC) to "Strong-Buy"

Key Points

• Texas Capital upgraded Atlanticus from “hold” to “strong-buy,” adding to a generally positive analyst backdrop. The stock now has a consensus rating of “Buy” with a consensus price target of $126.
• Atlanticus reported better-than-expected earnings last quarter, posting $2.23 EPS versus estimates of $1.69. Analysts expect the company to earn 9.48 EPS for the current fiscal year.
• Despite the upbeat outlook, insiders sold shares recently, including both the CFO and CEO selling 10,000 shares each at $103.01. Insider ownership remains high at 51%, while institutional ownership stands at 14.15%.

Atlanticus (NASDAQ:ATLC - Get Free Report) was upgraded by investment analysts at Texas Capital from a "hold" rating to a "strong-buy" rating in a research report issued on Monday,Zacks.com reports.

ATLC has been the subject of a number of other research reports. HSBC set a $144.00 price objective on Atlanticus in a research note on Monday. B. Riley Financial reaffirmed a "buy" rating on shares of Atlanticus in a research report on Thursday, May 14th. Jefferies Financial Group increased their target price on Atlanticus from $100.00 to $115.00 and gave the stock a "buy" rating in a report on Wednesday, July 8th. Weiss Ratings raised shares of Atlanticus from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday, June 11th. Finally, Capital One Financial set a $144.00 price target on shares of Atlanticus in a research note on Monday. Two analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Buy" and a consensus price target of $126.00.

Atlanticus Price Performance

ATLC stock opened at $96.61 on Monday. The stock has a market capitalization of $1.46 billion, a PE ratio of 14.42 and a beta of 2.11. The company's 50-day moving average is $89.94 and its 200-day moving average is $70.38. The company has a debt-to-equity ratio of 1.08, a current ratio of 1.24 and a quick ratio of 1.24. Atlanticus has a 1 year low of $45.74 and a 1 year high of $112.61.

Atlanticus (NASDAQ:ATLC - Get Free Report) last issued its earnings results on Thursday, May 7th. The credit services provider reported $2.23 EPS for the quarter, beating the consensus estimate of $1.69 by $0.54. Atlanticus had a return on equity of 23.43% and a net margin of 5.86%.The company had revenue of $679.59 million during the quarter, compared to the consensus estimate of $749.36 million. Equities research analysts expect that Atlanticus will post 9.48 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CFO William Mccamey sold 10,000 shares of Atlanticus stock in a transaction that occurred on Tuesday, June 30th. The stock was sold at an average price of $103.01, for a total transaction of $1,030,100.00. Following the transaction, the chief financial officer owned 127,410 shares of the company's stock, valued at $13,124,504.10. The trade was a 7.28% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Jeffrey A. Howard sold 10,000 shares of Atlanticus stock in a transaction that occurred on Tuesday, June 30th. The shares were sold at an average price of $103.01, for a total value of $1,030,100.00. Following the transaction, the chief executive officer directly owned 663,265 shares in the company, valued at approximately $68,322,927.65. The trade was a 1.49% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 75,000 shares of company stock valued at $7,868,627. Company insiders own 51.00% of the company's stock.

Hedge Funds Weigh In On Atlanticus

Several large investors have recently bought and sold shares of the stock. Financial Management Professionals Inc. purchased a new position in Atlanticus during the 2nd quarter worth $33,000. Advisory Services Network LLC purchased a new stake in shares of Atlanticus in the third quarter valued at about $47,000. Jones Financial Companies Lllp bought a new position in shares of Atlanticus during the first quarter valued at about $71,000. Inspire Investing LLC bought a new position in shares of Atlanticus during the first quarter valued at about $87,000. Finally, BNP Paribas Financial Markets boosted its holdings in Atlanticus by 334.8% during the second quarter. BNP Paribas Financial Markets now owns 1,735 shares of the credit services provider's stock worth $95,000 after purchasing an additional 1,336 shares during the last quarter. 14.15% of the stock is currently owned by institutional investors.

About Atlanticus

Atlanticus Holdings Corporation is a specialty financial services holding company that provides credit products and solutions to consumers across the United States. Through its subsidiaries, the company offers proprietary credit card programs, installment loan products and deposit accounts designed to serve customers who may have limited access to traditional credit. Atlanticus markets its offerings through a variety of channels, including direct‐to‐consumer online platforms, mail order, call centers and partnerships with retail and e-commerce businesses.

The company underwrites and services credit card portfolios under private-label and co-branded agreements, combining technology‐enabled underwriting with tailored customer service.

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