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

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.

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

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the company. Truist Financial reduced their price objective on Encore Capital Group from $64.00 to $57.00 and set a “buy” rating for the company in a research report on Thursday. JMP Securities boosted their target price 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. Northland Securities boosted their target price on Encore Capital Group from $58.00 to $66.00 and gave the stock an “outperform” rating in a report on Monday, December 23rd. Finally, StockNews.com raised Encore Capital Group from a “hold” rating to a “buy” rating in a report on Friday, November 29th. Four investment analysts have rated the stock with a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Buy” and a consensus price target of $62.67.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. T. Rowe Price Investment Management Inc. raised its stake in Encore Capital Group by 30.1% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 1,416,499 shares of the asset manager’s stock valued at $67,667,000 after purchasing an additional 327,637 shares during the period. Portolan Capital Management LLC acquired a new stake in Encore Capital Group during the 4th quarter valued at $10,291,000. Phase 2 Partners LLC grew its holdings in shares of Encore Capital Group by 219.9% during the 3rd quarter. Phase 2 Partners LLC now owns 241,509 shares of the asset manager’s stock valued at $11,416,000 after acquiring an additional 166,014 shares in the last quarter. Marshall Wace LLP boosted its holdings in Encore Capital Group by 73.1% in the fourth quarter. Marshall Wace LLP now owns 318,096 shares of the asset manager’s stock worth $15,195,000 after purchasing an additional 134,309 shares in the last quarter. Finally, Wellington Management Group LLP boosted its holdings in Encore Capital Group by 16.0% in the third quarter. Wellington Management Group LLP now owns 756,335 shares of the asset manager’s stock worth $35,752,000 after purchasing an additional 104,509 shares in the last quarter.

Encore Capital Group Price Performance

The stock has a market capitalization of $935.44 million, a P/E ratio of -5.03 and a beta of 1.55. 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 stock’s fifty day moving average is $48.71 and its 200-day moving average is $48.10.

Encore Capital Group Company Profile

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.