Encore Capital Group (NASDAQ:ECPG) Shares Gap Down After Earnings Miss

Shares of Encore Capital Group, Inc. (NASDAQ:ECPG) gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $49.86, but opened at $45.33. Encore Capital Group shares last traded at $39.60, with a volume of 166,436 shares changing hands.

The asset manager reported $1.50 earnings per share for the quarter, missing analysts’ consensus estimates of $1.55 by ($0.05). The business had revenue of $265.62 million for the quarter, compared to analyst estimates of $373.40 million. Encore Capital Group had a positive return on equity of 12.70% and a negative net margin of 13.91%.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on ECPG. JMP Securities increased their price target on Encore Capital Group from $60.00 to $65.00 and gave the stock a “market outperform” rating in a report on Thursday, November 7th. StockNews.com raised shares of Encore Capital Group from a “hold” rating to a “buy” rating in a research note on Friday, November 29th. Truist Financial reduced their price target on shares of Encore Capital Group from $64.00 to $57.00 and set a “buy” rating for the company in a report on Thursday. Finally, Northland Securities upped their price objective on shares of Encore Capital Group from $58.00 to $66.00 and gave the company an “outperform” rating in a report on Monday, December 23rd. Four analysts have rated the stock with a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Buy” and an average price target of $62.67.

Institutional Trading of Encore Capital Group

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Creative Planning lifted its holdings in shares of Encore Capital Group by 27.7% in the third quarter. Creative Planning now owns 7,155 shares of the asset manager’s stock valued at $338,000 after purchasing an additional 1,552 shares in the last quarter. Stephens Investment Management Group LLC lifted its stake in Encore Capital Group by 0.5% during the 3rd quarter. Stephens Investment Management Group LLC now owns 1,137,752 shares of the asset manager’s stock valued at $53,782,000 after acquiring an additional 5,373 shares in the last quarter. Versor Investments LP purchased a new position in Encore Capital Group during the 3rd quarter worth $222,000. KBC Group NV grew its stake in shares of Encore Capital Group by 54.9% in the 3rd quarter. KBC Group NV now owns 1,365 shares of the asset manager’s stock worth $65,000 after acquiring an additional 484 shares in the last quarter. Finally, Huntington National Bank lifted its position in shares of Encore Capital Group by 8,700.0% during the third quarter. Huntington National Bank now owns 528 shares of the asset manager’s stock valued at $25,000 after purchasing an additional 522 shares in the last quarter.

Encore Capital Group Trading Down 21.9 %

The company has a debt-to-equity ratio of 3.39, a current ratio of 1.11 and a quick ratio of 1.11. The firm’s fifty day moving average is $48.54 and its two-hundred day moving average is $48.04. The firm has a market capitalization of $922.76 million, a PE ratio of -4.96 and a beta of 1.55.

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.