Encore Capital Group (NASDAQ:ECPG) Shares Gap Down Following Weak Earnings

Encore Capital Group, Inc. (NASDAQ:ECPG - Get Free Report)'s share price gapped down before the market opened 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 traded.

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

Wall Street Analysts Forecast Growth

Several research firms have weighed in on ECPG. Northland Securities increased their price objective on Encore Capital Group from $58.00 to $66.00 and gave the stock an "outperform" rating in a report on Monday, December 23rd. Truist Financial cut their price objective on Encore Capital Group from $64.00 to $57.00 and set a "buy" rating on the stock in a research report on Thursday. StockNews.com lowered Encore Capital Group from a "buy" rating to a "hold" rating in a research report on Friday. Finally, JMP Securities increased their price objective 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. One research analyst has rated the stock with a hold rating, three have issued a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Buy" and an average price target of $62.67.

Institutional Trading of Encore Capital Group

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Huntington National Bank grew its stake in shares of Encore Capital Group by 8,700.0% in the third quarter. Huntington National Bank now owns 528 shares of the asset manager's stock worth $25,000 after acquiring an additional 522 shares during the last quarter. Nomura Asset Management Co. Ltd. raised its holdings in Encore Capital Group by 120.8% in the fourth quarter. Nomura Asset Management Co. Ltd. now owns 530 shares of the asset manager's stock worth $25,000 after buying an additional 290 shares during the last quarter. Meeder Asset Management Inc. bought a new position in shares of Encore Capital Group in the fourth quarter worth approximately $28,000. Sterling Capital Management LLC lifted its stake in shares of Encore Capital Group by 827.2% in the fourth quarter. Sterling Capital Management LLC now owns 751 shares of the asset manager's stock worth $36,000 after buying an additional 670 shares in the last quarter. Finally, KBC Group NV grew its holdings in shares of Encore Capital Group by 54.9% during the third quarter. KBC Group NV now owns 1,365 shares of the asset manager's stock valued at $65,000 after buying an additional 484 shares during the last quarter.

Encore Capital Group Stock Down 6.0 %

The company has a market cap of $839.85 million, a P/E ratio of -4.52 and a beta of 1.55. The company's 50-day moving average is $48.36 and its two-hundred day moving average is $47.97. The company has a debt-to-equity ratio of 3.39, a current ratio of 1.11 and a quick ratio of 1.11.

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.