Encore Capital Group (NASDAQ:ECPG) Sets New 1-Year High – Still a Buy?

Shares of Encore Capital Group Inc (NASDAQ:ECPG) hit a new 52-week high during mid-day trading on Friday . The company traded as high as $57.84 and last traded at $57.49, with a volume of 118191 shares changing hands. The stock had previously closed at $56.54.

Wall Street Analyst Weigh In

ECPG has been the subject of several recent research reports. Janney Montgomery Scott upped their target price on shares of Encore Capital Group from $56.00 to $62.00 and gave the company a “buy” rating in a research report on Thursday, November 6th. Zacks Research cut Encore Capital Group from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 5th. Citigroup reissued an “outperform” rating on shares of Encore Capital Group in a research note on Tuesday, January 20th. Citizens Jmp raised their target price on Encore Capital Group from $59.00 to $75.00 and gave the stock a “market outperform” rating in a report on Tuesday, January 20th. Finally, Wall Street Zen cut Encore Capital Group from a “strong-buy” rating to a “buy” rating in a research note on Sunday, November 16th. Four equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Encore Capital Group presently has an average rating of “Moderate Buy” and a consensus price target of $66.00.

Encore Capital Group Stock Up 2.1%

The firm has a fifty day simple moving average of $54.99 and a 200-day simple moving average of $47.18. The company has a market capitalization of $1.29 billion, a P/E ratio of -31.56 and a beta of 1.41. The company has a quick ratio of 0.66, a current ratio of 0.66 and a debt-to-equity ratio of 4.13.

Encore Capital Group (NASDAQ:ECPG) last released its quarterly earnings data on Wednesday, November 5th. The asset manager reported $3.17 earnings per share for the quarter, beating the consensus estimate of $1.92 by $1.25. Encore Capital Group had a positive return on equity of 25.27% and a negative net margin of 2.89%.The business had revenue of $460.35 million for the quarter, compared to analysts’ expectations of $410.70 million. During the same quarter in the previous year, the business posted $1.26 EPS. Encore Capital Group’s revenue for the quarter was up 25.4% on a year-over-year basis. On average, equities research analysts expect that Encore Capital Group Inc will post 5.09 EPS for the current fiscal year.

Insider Transactions at Encore Capital Group

In related news, insider John Yung sold 1,000 shares of the firm’s stock in a transaction on Wednesday, November 26th. The shares were sold at an average price of $52.00, for a total transaction of $52,000.00. Following the sale, the insider directly owned 56,609 shares in the company, valued at $2,943,668. This trade represents a 1.74% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Laura Olle sold 1,423 shares of the business’s stock in a transaction on Wednesday, December 3rd. The shares were sold at an average price of $52.79, for a total transaction of $75,120.17. Following the completion of the sale, the director directly owned 35,024 shares in the company, valued at $1,848,916.96. This represents a 3.90% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 4,923 shares of company stock valued at $264,620 over the last quarter. Corporate insiders own 2.54% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Royal Bank of Canada lifted its stake in Encore Capital Group by 97.9% in the 1st quarter. Royal Bank of Canada now owns 33,620 shares of the asset manager’s stock valued at $1,153,000 after acquiring an additional 16,634 shares in the last quarter. AQR Capital Management LLC grew its stake in shares of Encore Capital Group by 263.0% during the 1st quarter. AQR Capital Management LLC now owns 68,860 shares of the asset manager’s stock worth $2,361,000 after acquiring an additional 49,892 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of Encore Capital Group by 4.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 13,929 shares of the asset manager’s stock valued at $477,000 after purchasing an additional 612 shares during the last quarter. Empowered Funds LLC lifted its position in shares of Encore Capital Group by 2.0% in the first quarter. Empowered Funds LLC now owns 90,910 shares of the asset manager’s stock worth $3,116,000 after purchasing an additional 1,806 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in Encore Capital Group by 7.8% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 78,465 shares of the asset manager’s stock worth $2,690,000 after purchasing an additional 5,672 shares during the last quarter.

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.