Encore Capital Group (NASDAQ:ECPG) Shares Down 8.9% – Here’s What Happened

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

Key Headlines Impacting 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

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on ECPG shares. Northland Securities set a $124.00 price target on Encore Capital Group in a research report on Tuesday, October 13th. Zacks Research cut shares of Encore Capital Group from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 5th. Truist Financial upped their price objective on shares of Encore Capital Group from $112.00 to $122.00 and gave the stock a “buy” rating in a report on Thursday. Citizens Jmp increased their target price on shares of Encore Capital Group from $115.00 to $140.00 and gave the company a “market outperform” rating in a research report on Thursday. Finally, Weiss Ratings upgraded shares of Encore Capital Group from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, October 8th. Four research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, Encore Capital Group currently has a consensus rating of “Moderate Buy” and an average target price of $128.67.

Encore Capital Group Price Performance

The company’s 50 day moving average price is $99.61 and its 200-day moving average price is $83.92. The company has a market cap of $2.43 billion, a price-to-earnings ratio of 7.34 and a beta of 1.29. The company has a debt-to-equity ratio of 3.87, a quick ratio of 0.96 and a current ratio of 0.96.

Encore Capital Group (NASDAQ:ECPG) last issued its earnings results on Wednesday, November 4th. The asset manager reported $5.57 earnings per share for the quarter, topping analysts’ consensus estimates of $3.35 by $2.22. The firm had revenue of $544.54 million during the quarter, compared to analysts’ expectations of $466.80 million. Encore Capital Group had a net margin of 17.67% and a return on equity of 34.07%. The firm’s revenue for the quarter was up 18.3% compared to the same quarter last year. During the same period last year, the firm posted $3.17 earnings per share. On average, equities research analysts forecast that Encore Capital Group Inc will post 13.52 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Encore Capital Group

Several large investors have recently modified their holdings of ECPG. BlackRock Inc. acquired a new stake in shares of Encore Capital Group during the second quarter worth $343,229,000. Heartland Advisors Inc. purchased a new stake in shares of Encore Capital Group during the second quarter valued at $33,848,000. Amundi boosted its position in shares of Encore Capital Group by 3,134.1% in the 2nd quarter. Amundi now owns 304,202 shares of the asset manager’s stock valued at $28,379,000 after purchasing an additional 294,796 shares during the period. Arrowstreet Capital Limited Partnership boosted its position in shares of Encore Capital Group by 658.2% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 334,018 shares of the asset manager’s stock valued at $23,421,000 after purchasing an additional 289,964 shares during the period. Finally, Bank of New York Mellon Corp acquired a new position in shares of Encore Capital Group in the 2nd quarter valued at $11,664,000.

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.