Encore Capital Group (ECPG) Cut to Sell at Zacks Investment Research

Zacks Investment Research lowered shares of Encore Capital Group (NASDAQ:ECPG) from a hold rating to a sell rating in a research report released on Tuesday.

According to Zacks, “Encore Capital Group is a leading provider of debt management and recovery solutions for consumers and property owners across a broad range of assets. Through its subsidiaries, the company purchases portfolios of consumer receivables from major banks, credit unions, and utility providers, and partners with individuals as they repay their obligations and work toward financial recovery. Through its Propel Financial Services subsidiary, the company assists property owners who are delinquent on their property taxes by structuring affordable monthly payment plans. Encore’s success and future growth are driven by its sophisticated and widespread use of analytics, its broad investments in data and behavioral science, the significant cost advantages provided by its highly-efficient operating model and proven investment strategy, and the company’s demonstrated commitment to conducting business ethically and in ways that support its consumers’ financial recovery. “

Several other research firms also recently weighed in on ECPG. William Blair reiterated an outperform rating on shares of Encore Capital Group in a research report on Thursday, August 9th. BidaskClub upgraded shares of Encore Capital Group from a strong sell rating to a sell rating in a research report on Wednesday, July 11th. ValuEngine upgraded shares of Encore Capital Group from a sell rating to a hold rating in a research report on Tuesday, July 10th. Oppenheimer reiterated a buy rating on shares of Encore Capital Group in a research report on Monday, July 16th. Finally, UBS Group downgraded shares of Encore Capital Group from an outperform rating to a market perform rating in a research report on Tuesday, October 2nd. Three research analysts have rated the stock with a sell rating, three have given a hold rating and three have given a buy rating to the company. Encore Capital Group currently has an average rating of Hold and an average price target of $49.75.

Shares of Encore Capital Group stock opened at $29.48 on Tuesday. The company has a market cap of $924.21 million, a P/E ratio of 7.31, a P/E/G ratio of 0.48 and a beta of 1.55. Encore Capital Group has a twelve month low of $28.78 and a twelve month high of $52.00. The company has a debt-to-equity ratio of 5.74, a quick ratio of 0.63 and a current ratio of 0.63.

Encore Capital Group (NASDAQ:ECPG) last issued its quarterly earnings data on Wednesday, August 8th. The asset manager reported $1.33 earnings per share for the quarter, beating the Zacks’ consensus estimate of $1.12 by $0.21. The company had revenue of $349.75 million for the quarter, compared to the consensus estimate of $335.05 million. Encore Capital Group had a net margin of 6.84% and a return on equity of 20.28%. The firm’s revenue for the quarter was up 20.2% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.87 earnings per share. On average, research analysts anticipate that Encore Capital Group will post 4.8 earnings per share for the current fiscal year.

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Legal & General Group Plc increased its stake in shares of Encore Capital Group by 2.4% in the first quarter. Legal & General Group Plc now owns 48,623 shares of the asset manager’s stock worth $2,193,000 after purchasing an additional 1,157 shares in the last quarter. Sheets Smith Wealth Management grew its stake in shares of Encore Capital Group by 11.9% in the 2nd quarter. Sheets Smith Wealth Management now owns 13,599 shares of the asset manager’s stock worth $498,000 after buying an additional 1,447 shares in the last quarter. Great West Life Assurance Co. Can grew its stake in shares of Encore Capital Group by 5.0% in the 1st quarter. Great West Life Assurance Co. Can now owns 31,176 shares of the asset manager’s stock worth $1,407,000 after buying an additional 1,487 shares in the last quarter. Principal Financial Group Inc. grew its stake in shares of Encore Capital Group by 0.8% in the 1st quarter. Principal Financial Group Inc. now owns 199,793 shares of the asset manager’s stock worth $9,031,000 after buying an additional 1,593 shares in the last quarter. Finally, OppenheimerFunds Inc. grew its stake in shares of Encore Capital Group by 14.3% in the 2nd quarter. OppenheimerFunds Inc. now owns 19,893 shares of the asset manager’s stock worth $728,000 after buying an additional 2,494 shares in the last quarter.

Encore Capital Group Company Profile

Encore Capital Group, Inc, a specialty finance company, together with its subsidiaries, provides debt recovery solutions and other related services for consumers across a range of 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.

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