Encore Capital Group (NASDAQ:ECPG) Sees Unusually-High Trading Volume Following Earnings Beat

Encore Capital Group Inc (NASDAQ:ECPG) shares saw an uptick in trading volume on Thursday following a stronger than expected earnings report. 174,607 shares traded hands during mid-day trading, an increase of 8% from the previous session’s volume of 162,177 shares.The stock last traded at $64.3840 and had previously closed at $59.17.

The asset manager reported $3.37 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.20 by $1.17. The business had revenue of $473.55 million during the quarter, compared to the consensus estimate of $423.14 million. Encore Capital Group had a positive return on equity of 25.27% and a negative net margin of 2.89%.The business’s revenue for the quarter was up 78.3% on a year-over-year basis. During the same period last year, the business posted ($9.42) earnings per share.

Key Encore Capital Group News

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

• Positive Sentiment: Q4 results materially beat expectations — EPS $3.37 vs. $2.20 consensus and revenue $473.6M vs. $423.1M, with revenue up ~78% year‑over‑year. Management hosted a call and released detailed slides backing the performance. MarketBeat Q4 Earnings
• Positive Sentiment: Company set FY‑2026 EPS guidance at $12.00 (vs. street ~$8.76), signaling considerably stronger forward earnings power and confidence in cash‑flow generation. This is a major catalyst for re‑rating the stock. Seeking Alpha Guidance
• Positive Sentiment: Management expects ~10% EPS growth to $12 in 2026 and is targeting $1.4B–$1.5B in portfolio purchases — an aggressive growth push that supports higher future earnings and revenue scale. Seeking Alpha Portfolio Purchases
• Positive Sentiment: Analyst sentiment turned more bullish: Truist raised its price target to $80 (buy), implying meaningful upside from recent levels — this increases buy‑side interest and can support further upside. Benzinga Truist Upgrade
• Neutral Sentiment: Detailed earnings call transcript and highlights are available for investors who want management commentary and execution details on portfolio purchases, collections trends and capital allocation. Earnings Call Transcript
• Neutral Sentiment: Press coverage and Q4 snapshots summarizing results and company outlook are broadly available for further reading. Yahoo Finance Highlights
• Negative Sentiment: Despite the beat, Encore still shows a negative net margin in the quarter (reported ~‑2.9%) and carries high leverage — factors that raise execution and credit risk as the firm scales portfolio purchases. Investors should monitor margin improvement and balance‑sheet metrics as the company deploys capital. MarketBeat Margin Detail

Analysts Set New Price Targets

Several equities analysts have recently weighed in on ECPG shares. Northland Securities set a $70.00 target price on shares of Encore Capital Group in a research note on Thursday, January 22nd. Zacks Research lowered shares of Encore Capital Group from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 5th. Truist Financial lifted their price objective on shares of Encore Capital Group from $59.00 to $80.00 and gave the company a “buy” rating in a research note on Thursday. Weiss Ratings restated a “sell (d-)” rating on shares of Encore Capital Group in a research report on Wednesday, January 21st. Finally, Citigroup reiterated an “outperform” rating on shares of Encore Capital Group in a research report on Tuesday, January 20th. 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 company. Based on data from MarketBeat.com, Encore Capital Group currently has a consensus rating of “Moderate Buy” and an average target price of $75.50.

Insiders Place Their Bets

In related news, Director Laura Olle sold 1,423 shares of Encore Capital Group stock in a transaction on Wednesday, December 3rd. The stock was sold at an average price of $52.79, for a total transaction of $75,120.17. Following the completion of the sale, the director owned 35,024 shares of the company’s stock, valued at approximately $1,848,916.96. This trade represents a 3.90% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Ryan B. Bell sold 2,500 shares of the company’s stock in a transaction dated Wednesday, December 10th. The stock was sold at an average price of $55.00, for a total value of $137,500.00. Following the completion of the transaction, the insider owned 55,410 shares in the company, valued at $3,047,550. This represents a 4.32% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 2.54% of the company’s stock.

Institutional Investors Weigh In On Encore Capital Group

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

Encore Capital Group Trading Up 8.6%

The company has a debt-to-equity ratio of 4.13, a current ratio of 0.66 and a quick ratio of 0.66. The firm’s 50 day moving average price is $56.16 and its 200 day moving average price is $49.18. The stock has a market capitalization of $1.43 billion, a P/E ratio of -35.22 and a beta of 1.41.

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.