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

Encore Capital Group, Inc. (NASDAQ:ECPG) shares gapped down prior to trading on Thursday following a dissappointing 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 trading hands.

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

Wall Street Analysts Forecast Growth

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

Institutional Investors Weigh In On Encore Capital Group

Several hedge funds have recently added to or reduced their stakes in ECPG. Vanguard Group Inc. raised its stake in shares of Encore Capital Group by 0.6% during the fourth quarter. Vanguard Group Inc. now owns 2,588,969 shares of the asset manager’s stock valued at $123,675,000 after acquiring an additional 16,663 shares during the last quarter. T. Rowe Price Investment Management Inc. increased its holdings in Encore Capital Group by 30.1% in the fourth 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. Stephens Investment Management Group LLC raised its position 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 worth $53,782,000 after purchasing an additional 5,373 shares during the last quarter. State Street Corp lifted its holdings in Encore Capital Group by 0.3% during the 3rd quarter. State Street Corp now owns 900,677 shares of the asset manager’s stock worth $42,575,000 after buying an additional 2,597 shares during the period. Finally, Wellington Management Group LLP grew its position in shares of Encore Capital Group by 16.0% in the 3rd quarter. Wellington Management Group LLP now owns 756,335 shares of the asset manager’s stock valued at $35,752,000 after buying an additional 104,509 shares during the last quarter.

Encore Capital Group Trading Down 21.9 %

The company has a quick ratio of 1.11, a current ratio of 1.11 and a debt-to-equity ratio of 3.39. The company has a market cap of $922.76 million, a price-to-earnings ratio of -4.96 and a beta of 1.55. The firm has a 50 day moving average price of $48.54 and a two-hundred day moving average price of $48.04.

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.