Encore Capital Group (NASDAQ:ECPG) Hits New 52-Week High – Still a Buy?

Encore Capital Group Inc (NASDAQ:ECPG)’s share price reached a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $72.30 and last traded at $70.92, with a volume of 500320 shares. The stock had previously closed at $68.29.

Wall Street Analyst Weigh In

ECPG has been the subject of several research reports. Zacks Research raised Encore Capital Group from a “hold” rating to a “strong-buy” rating in a research note on Friday, February 27th. Citigroup reiterated an “outperform” rating on shares of Encore Capital Group in a research report on Tuesday, January 20th. Truist Financial boosted their price objective on Encore Capital Group from $59.00 to $80.00 and gave the stock a “buy” rating in a report on Thursday, February 26th. Janney Montgomery Scott upped their price objective on shares of Encore Capital Group from $56.00 to $62.00 and gave the company a “buy” rating in a research note on Thursday, November 6th. Finally, Weiss Ratings upgraded shares of Encore Capital Group from a “sell (d-)” rating to a “hold (c-)” rating in a report on Friday, February 27th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, Encore Capital Group has an average rating of “Buy” and an average target price of $75.50.

Encore Capital Group Price Performance

The company has a current ratio of 0.68, a quick ratio of 0.68 and a debt-to-equity ratio of 4.10. The stock has a 50-day simple moving average of $57.65 and a 200 day simple moving average of $50.19. The stock has a market capitalization of $1.58 billion, a price-to-earnings ratio of 6.73 and a beta of 1.35.

Encore Capital Group (NASDAQ:ECPG) last issued its earnings results on Wednesday, February 25th. The asset manager reported $3.37 earnings per share for the quarter, beating analysts’ consensus estimates of $2.20 by $1.17. The company had revenue of $473.55 million for the quarter, compared to the consensus estimate of $423.14 million. Encore Capital Group had a return on equity of 28.19% and a net margin of 14.52%.The firm’s quarterly revenue was up 78.3% on a year-over-year basis. During the same quarter in the prior year, the company earned ($9.42) EPS. On average, equities research analysts forecast that Encore Capital Group Inc will post 5.09 EPS for the current fiscal year.

Insider Activity

In other news, insider Ryan B. Bell sold 7,240 shares of the company’s stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $69.04, for a total value of $499,849.60. Following the transaction, the insider directly owned 48,170 shares of the company’s stock, valued at approximately $3,325,656.80. This represents a 13.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Over the last three months, insiders have sold 10,000 shares of company stock worth $655,191. Company insiders own 2.54% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of ECPG. Nisa Investment Advisors LLC purchased a new stake in shares of Encore Capital Group during the 2nd quarter worth about $27,000. IFP Advisors Inc increased its holdings in Encore Capital Group by 1,729.6% in the fourth quarter. IFP Advisors Inc now owns 494 shares of the asset manager’s stock worth $27,000 after buying an additional 467 shares during the last quarter. EverSource Wealth Advisors LLC raised its position in Encore Capital Group by 185.7% during the fourth quarter. EverSource Wealth Advisors LLC now owns 717 shares of the asset manager’s stock valued at $39,000 after acquiring an additional 466 shares in the last quarter. Allworth Financial LP lifted its stake in Encore Capital Group by 29.1% in the fourth quarter. Allworth Financial LP now owns 1,139 shares of the asset manager’s stock valued at $62,000 after acquiring an additional 257 shares during the last quarter. Finally, LSV Asset Management bought a new stake in Encore Capital Group in the third quarter worth approximately $88,000.

About Encore Capital Group

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.