Encore Capital Group (ECPG) Downgraded by Zacks Investment Research

Zacks Investment Research downgraded shares of Encore Capital Group (NASDAQ:ECPG) from a hold rating to a sell rating in a research note published on Wednesday.

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. “

A number of other analysts also recently commented on the stock. ValuEngine downgraded shares of Encore Capital Group from a sell rating to a strong sell rating in a report on Thursday, October 4th. Oppenheimer downgraded shares of Encore Capital Group from an outperform rating to a hold rating and set a $54.00 price objective on the stock. in a report on Tuesday, October 2nd. UBS Group downgraded shares of Encore Capital Group from an outperform rating to a market perform rating in a report on Tuesday, October 2nd. BidaskClub downgraded shares of Encore Capital Group from a sell rating to a strong sell rating in a report on Thursday, September 13th. Finally, William Blair reissued an outperform rating on shares of Encore Capital Group in a report on Thursday, August 9th. Three equities research analysts have rated the stock with a sell rating, three have assigned a hold rating and three have given a buy rating to the company. The company currently has an average rating of Hold and an average price target of $49.75.

ECPG stock traded down $0.53 during trading on Wednesday, reaching $30.06. 242,812 shares of the company were exchanged, compared to its average volume of 285,877. The company has a market cap of $1.11 billion, a P/E ratio of 7.50, a P/E/G ratio of 0.57 and a beta of 1.55. Encore Capital Group has a 52-week low of $29.97 and a 52-week high of $52.00. The company has a current ratio of 0.63, a quick ratio of 0.63 and a debt-to-equity ratio of 5.74.

Encore Capital Group (NASDAQ:ECPG) last released its quarterly earnings data on Wednesday, August 8th. The asset manager reported $1.33 EPS for the quarter, topping analysts’ consensus estimates of $1.12 by $0.21. The firm 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 was up 20.2% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.87 earnings per share. On average, equities research analysts expect that Encore Capital Group will post 4.81 earnings per share for the current year.

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