Encore Capital Group (NASDAQ:ECPG) Reaches New 12-Month High – Here’s Why

Shares of Encore Capital Group Inc (NASDAQ:ECPG) reached a new 52-week high during mid-day trading on Monday . The stock traded as high as $52.47 and last traded at $51.1950, with a volume of 129045 shares. The stock had previously closed at $51.13.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on the company. Zacks Research upgraded Encore Capital Group from a “hold” rating to a “strong-buy” rating in a research note on Friday, October 10th. Wall Street Zen lowered Encore Capital Group from a “strong-buy” rating to a “buy” rating in a research note on Sunday, November 16th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Encore Capital Group in a research report on Wednesday, October 8th. Finally, Janney Montgomery Scott raised their price objective on Encore Capital Group from $56.00 to $62.00 and gave the company a “buy” rating in a report on Thursday, November 6th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $61.67.

Encore Capital Group Stock Performance

The company has a debt-to-equity ratio of 4.43, a quick ratio of 0.81 and a current ratio of 0.81. The firm’s 50-day moving average price is $44.97 and its two-hundred day moving average price is $41.78. The stock has a market cap of $1.16 billion, a price-to-earnings ratio of -13.81 and a beta of 1.43.

Encore Capital Group (NASDAQ:ECPG) last issued its earnings results on Wednesday, November 5th. The asset manager reported $3.17 EPS for the quarter, topping analysts’ consensus estimates of $1.92 by $1.25. The company had revenue of $460.35 million for the quarter, compared to the consensus estimate of $410.70 million. Encore Capital Group had a negative net margin of 6.07% and a positive return on equity of 19.61%. During the same period in the previous year, the firm earned $1.26 earnings per share. Encore Capital Group’s quarterly revenue was up 25.4% compared to the same quarter last year. On average, analysts expect that Encore Capital Group Inc will post 5.09 EPS for the current fiscal year.

Insider Activity at Encore Capital Group

In related news, insider John Yung sold 1,000 shares of the company’s stock in a transaction that occurred on Wednesday, November 26th. The stock was sold at an average price of $52.00, for a total value of $52,000.00. Following the transaction, the insider directly owned 56,609 shares in the company, valued at approximately $2,943,668. This represents a 1.74% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 2.54% of the company’s stock.

Hedge Funds Weigh In On Encore Capital Group

Several large investors have recently modified their holdings of ECPG. Stephens Investment Management Group LLC raised its holdings in Encore Capital Group by 9.1% in the 2nd quarter. Stephens Investment Management Group LLC now owns 1,248,831 shares of the asset manager’s stock valued at $48,342,000 after buying an additional 104,367 shares during the period. Wellington Management Group LLP increased its position in shares of Encore Capital Group by 13.0% during the first quarter. Wellington Management Group LLP now owns 790,392 shares of the asset manager’s stock valued at $27,095,000 after acquiring an additional 91,019 shares during the last quarter. First Trust Advisors LP raised its stake in shares of Encore Capital Group by 379.7% in the 3rd quarter. First Trust Advisors LP now owns 98,817 shares of the asset manager’s stock valued at $4,125,000 after acquiring an additional 78,217 shares during the period. Arrowstreet Capital Limited Partnership raised its stake in shares of Encore Capital Group by 476.6% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 92,978 shares of the asset manager’s stock valued at $3,599,000 after acquiring an additional 76,852 shares during the period. Finally, SG Americas Securities LLC lifted its holdings in shares of Encore Capital Group by 383.0% in the 3rd quarter. SG Americas Securities LLC now owns 66,499 shares of the asset manager’s stock worth $2,776,000 after acquiring an additional 52,730 shares during the last quarter.

About Encore Capital Group

Encore Capital Group, Inc, a specialty finance company, provides debt recovery solutions and other related services for consumers across financial assets worldwide. The company purchases portfolios of defaulted consumer receivables at deep discounts to face value, as well as manages them by working with individuals as they repay their obligations and works toward financial recovery.