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

Shares of Encore Capital Group, Inc. (NASDAQ:ECPG) gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. 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 for the quarter, compared to analyst estimates of $373.40 million. Encore Capital Group had a positive return on equity of 12.70% and a negative net margin of 13.91%.

Analyst Ratings Changes

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

Hedge Funds Weigh In On Encore Capital Group

Several hedge funds have recently made changes to their positions in the company. Mackenzie Financial Corp purchased a new stake in shares of Encore Capital Group in the 4th quarter valued at about $322,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in Encore Capital Group by 31.6% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 72,793 shares of the asset manager’s stock worth $3,477,000 after buying an additional 17,470 shares during the period. Voloridge Investment Management LLC purchased a new stake in Encore Capital Group in the fourth quarter valued at approximately $1,713,000. Squarepoint Ops LLC boosted its holdings in shares of Encore Capital Group by 64.5% in the fourth quarter. Squarepoint Ops LLC now owns 42,095 shares of the asset manager’s stock valued at $2,011,000 after acquiring an additional 16,507 shares during the period. Finally, Two Sigma Advisers LP grew its position in shares of Encore Capital Group by 75.4% during the fourth quarter. Two Sigma Advisers LP now owns 87,000 shares of the asset manager’s stock worth $4,156,000 after acquiring an additional 37,400 shares during the last quarter.

Encore Capital Group Stock Down 3.2 %

The business’s fifty day moving average price is $48.36 and its 200 day moving average price is $47.97. The firm has a market capitalization of $893.62 million, a price-to-earnings ratio of -4.81 and a beta of 1.55. The company has a current ratio of 1.11, a quick ratio of 1.11 and a debt-to-equity ratio of 3.39.

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.