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

Encore Capital Group (NASDAQ:ECPG) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Thursday.

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 brokerages have also commented on ECPG. ValuEngine lowered shares of Encore Capital Group from a “hold” rating to a “sell” rating in a research report on Tuesday, August 28th. Oppenheimer reissued a “hold” rating on shares of Encore Capital Group in a research report on Thursday. William Blair reissued an “outperform” rating on shares of Encore Capital Group in a research report on Thursday, August 9th. BidaskClub raised shares of Encore Capital Group from a “strong sell” rating to a “sell” rating in a research report on Wednesday, July 11th. Finally, UBS Group lowered shares of Encore Capital Group from an “outperform” rating to a “market perform” rating in a research report on Tuesday, October 2nd. Three equities research analysts have rated the stock with a sell rating, three have given a hold rating and two have issued a buy rating to the company. The stock currently has an average rating of “Hold” and a consensus price target of $47.33.

Shares of ECPG stock opened at $25.27 on Thursday. Encore Capital Group has a one year low of $23.59 and a one year high of $49.80. The company has a quick ratio of 0.63, a current ratio of 0.63 and a debt-to-equity ratio of 5.74. The company has a market cap of $808.57 million, a P/E ratio of 6.30, a P/E/G ratio of 0.42 and a beta of 1.80.

Encore Capital Group (NASDAQ:ECPG) last issued its quarterly earnings results on Wednesday, November 7th. The asset manager reported $1.19 EPS for the quarter, hitting the consensus estimate of $1.19. Encore Capital Group had a net margin of 6.13% and a return on equity of 20.85%. The firm had revenue of $336.77 million during the quarter, compared to analyst estimates of $342.33 million. During the same quarter in the prior year, the business posted $1.14 earnings per share. Encore Capital Group’s revenue for the quarter was up 9.8% compared to the same quarter last year. Research analysts anticipate that Encore Capital Group will post 4.8 EPS for the current year.

Institutional investors have recently added to or reduced their stakes in the company. Commonwealth of Pennsylvania Public School Empls Retrmt SYS acquired a new stake in shares of Encore Capital Group in the third quarter worth $219,000. Xact Kapitalforvaltning AB acquired a new stake in shares of Encore Capital Group in the first quarter worth $228,000. Stevens Capital Management LP acquired a new stake in shares of Encore Capital Group in the second quarter worth $334,000. Dynamic Technology Lab Private Ltd acquired a new stake in shares of Encore Capital Group in the second quarter worth $343,000. Finally, Trexquant Investment LP acquired a new stake in shares of Encore Capital Group in the third quarter worth $380,000.

About Encore Capital Group

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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