Encore Capital Group (NASDAQ:ECPG) Reaches New 12-Month Low – Here’s Why

Shares of Encore Capital Group, Inc. (NASDAQ:ECPG) hit a new 52-week low on Friday . The company traded as low as $29.87 and last traded at $31.10, with a volume of 196141 shares changing hands. The stock had previously closed at $33.54.

Analyst Ratings Changes

Several research firms recently weighed in on ECPG. Truist Financial reduced their target price on Encore Capital Group from $64.00 to $57.00 and set a “buy” rating for the company in a report on Thursday, February 27th. StockNews.com cut shares of Encore Capital Group from a “hold” rating to a “sell” rating in a research note on Friday. Finally, Northland Securities raised their target price 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. One analyst has rated the stock with a sell rating, three have assigned a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $62.67.

Encore Capital Group Trading Down 6.6 %

The company has a market capitalization of $742.00 million, a P/E ratio of -3.99 and a beta of 1.73. The company has a 50-day simple moving average of $41.70 and a 200 day simple moving average of $45.50. The company has a debt-to-equity ratio of 3.39, a quick ratio of 1.11 and a current ratio of 1.11.

Encore Capital Group (NASDAQ:ECPG) last released its earnings results on Wednesday, February 26th. The asset manager reported $1.50 EPS for the quarter, missing the consensus estimate of $1.55 by ($0.05). The company had revenue of $265.62 million for 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%. Sell-side analysts expect that Encore Capital Group, Inc. will post 5.09 earnings per share for the current year.

Insider Activity at Encore Capital Group

In other news, CEO Ashish Masih acquired 20,000 shares of the stock in a transaction dated Wednesday, March 5th. The shares were acquired at an average cost of $35.14 per share, for a total transaction of $702,800.00. Following the completion of the transaction, the chief executive officer now owns 322,254 shares in the company, valued at approximately $11,324,005.56. This trade represents a 6.62 % increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director Ashwini Gupta bought 40,000 shares of Encore Capital Group stock in a transaction that occurred on Wednesday, March 5th. The stock was purchased at an average cost of $35.10 per share, with a total value of $1,404,000.00. Following the completion of the transaction, the director now owns 96,909 shares of the company’s stock, valued at $3,401,505.90. This trade represents a 70.29 % increase in their ownership of the stock. The disclosure for this purchase can be found here. Corporate insiders own 2.63% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Verition Fund Management LLC raised its holdings in shares of Encore Capital Group by 4.3% in the 3rd quarter. Verition Fund Management LLC now owns 8,828 shares of the asset manager’s stock worth $417,000 after buying an additional 364 shares in the last quarter. Systematic Financial Management LP acquired a new position in Encore Capital Group during the third quarter worth $156,000. State Street Corp lifted its holdings in shares of Encore Capital Group by 0.3% during the third quarter. State Street Corp now owns 900,677 shares of the asset manager’s stock valued at $42,575,000 after acquiring an additional 2,597 shares during the period. Wellington Management Group LLP boosted its stake 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 purchasing an additional 104,509 shares in the last quarter. Finally, Jane Street Group LLC grew its holdings in shares of Encore Capital Group by 191.7% in the 3rd quarter. Jane Street Group LLC now owns 49,719 shares of the asset manager’s stock worth $2,350,000 after purchasing an additional 32,672 shares during the last quarter.

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.