Encore Capital Group (NASDAQ:ECPG) has received a price target increase from Janney Montgomery Scott, which raised its target from $56.00 to $62.00 in a research note distributed to investors on Thursday. The brokerage affirmed a buy rating on the asset manager’s stock, indicating optimism regarding its future performance.
Other financial institutions have also analyzed Encore Capital Group recently. Weiss Ratings reiterated a “sell (d-)” rating on the company’s shares in a report published on October 8, while Zacks Research upgraded the stock from a “hold” rating to a “strong-buy” on October 10. Currently, one analyst has issued a Strong Buy rating, three have given a Buy rating, and one has opted for a Sell rating. According to data from MarketBeat.com, the stock holds an average rating of “Moderate Buy” alongside an average target price of $61.67.
Strong Earnings Boost Investor Confidence
Encore Capital Group’s financial performance has also contributed to its favorable outlook. The company announced its quarterly earnings data on November 5, revealing earnings per share (EPS) of $3.17. This figure significantly surpassed analysts’ consensus estimates of $1.92, marking a difference of $1.25.
The firm’s revenue for the quarter reached $460.35 million, surpassing the consensus estimate of $410.70 million. This represents a notable increase of 25.4% compared to the same quarter last year, when it reported $1.26 in EPS. Analysts predict that Encore Capital Group will post an EPS of 5.09 for the current year.
Institutional investors have been active in the market, buying and selling shares of Encore Capital Group. For instance, Heartland Advisors Inc. acquired a new stake during the first quarter valued at approximately $10,118,000. Similarly, Stephens Investment Management Group LLC increased its holdings by 9.1% in the second quarter, now owning 1,248,831 shares worth $48,342,000 after acquiring an additional 104,367 shares.
Institutional Movements and Company Profile
Additionally, Wellington Management Group LLP raised its stake by 13.0% during the first quarter, owning 790,392 shares valued at $27,095,000. Arrowstreet Capital Limited Partnership significantly increased its position by 476.6% in the second quarter, now holding 92,978 shares valued at $3,599,000. Finally, Allianz Asset Management GmbH lifted its holdings by 38.6% in the first quarter, owning 196,004 shares worth $6,719,000.
Encore Capital Group, Inc. operates as a specialty finance company providing debt recovery solutions and related services for consumers globally. The firm purchases portfolios of defaulted consumer receivables at significant discounts and manages them by assisting individuals in repaying their obligations while aiming for financial recovery.
As the company continues to show strong financial results and engages institutional investors, its stock’s future prospects remain closely monitored by market analysts and stakeholders.
