Encore Capital Group (NASDAQ:ECPG) Sees Large Volume Increase Following Earnings Beat

Encore Capital Group Inc (NASDAQ:ECPG) shares saw unusually-high trading volume on Thursday after the company announced better than expected quarterly earnings. Approximately 174,607 shares traded hands during mid-day trading, an increase of 8% from the previous session’s volume of 162,177 shares.The stock last traded at $64.3840 and had previously closed at $59.17.

The asset manager reported $3.37 EPS for the quarter, beating analysts’ consensus estimates of $2.20 by $1.17. The business had revenue of $473.55 million during the quarter, compared to analyst estimates of $423.14 million. Encore Capital Group had a positive return on equity of 25.27% and a negative net margin of 2.89%.Encore Capital Group’s quarterly revenue was up 78.3% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($9.42) EPS.

Key Encore Capital Group News

Here are the key news stories impacting Encore Capital Group this week:

• Positive Sentiment: Q4 results materially beat expectations — EPS $3.37 vs. $2.20 consensus and revenue $473.6M vs. $423.1M, with revenue up ~78% year‑over‑year. Management hosted a call and released detailed slides backing the performance. MarketBeat Q4 Earnings
• Positive Sentiment: Company set FY‑2026 EPS guidance at $12.00 (vs. street ~$8.76), signaling considerably stronger forward earnings power and confidence in cash‑flow generation. This is a major catalyst for re‑rating the stock. Seeking Alpha Guidance
• Positive Sentiment: Management expects ~10% EPS growth to $12 in 2026 and is targeting $1.4B–$1.5B in portfolio purchases — an aggressive growth push that supports higher future earnings and revenue scale. Seeking Alpha Portfolio Purchases
• Positive Sentiment: Analyst sentiment turned more bullish: Truist raised its price target to $80 (buy), implying meaningful upside from recent levels — this increases buy‑side interest and can support further upside. Benzinga Truist Upgrade
• Neutral Sentiment: Detailed earnings call transcript and highlights are available for investors who want management commentary and execution details on portfolio purchases, collections trends and capital allocation. Earnings Call Transcript
• Neutral Sentiment: Press coverage and Q4 snapshots summarizing results and company outlook are broadly available for further reading. Yahoo Finance Highlights
• Negative Sentiment: Despite the beat, Encore still shows a negative net margin in the quarter (reported ~‑2.9%) and carries high leverage — factors that raise execution and credit risk as the firm scales portfolio purchases. Investors should monitor margin improvement and balance‑sheet metrics as the company deploys capital. MarketBeat Margin Detail

Analysts Set New Price Targets

Several research firms recently weighed in on ECPG. Janney Montgomery Scott lifted their price target on shares of Encore Capital Group from $56.00 to $62.00 and gave the company a “buy” rating in a report on Thursday, November 6th. Citizens Jmp lifted their target price on shares of Encore Capital Group from $75.00 to $90.00 and gave the company a “market outperform” rating in a research note on Thursday. Zacks Research downgraded shares of Encore Capital Group from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 5th. Citigroup reaffirmed an “outperform” rating on shares of Encore Capital Group in a research report on Tuesday, January 20th. Finally, Wall Street Zen lowered Encore Capital Group from a “strong-buy” rating to a “buy” rating in a research report on Sunday, November 16th. Four research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $75.50.

Insider Buying and Selling

In related news, Director Laura Olle sold 1,423 shares of the company’s stock in a transaction that occurred on Wednesday, December 3rd. The stock was sold at an average price of $52.79, for a total value of $75,120.17. Following the sale, the director owned 35,024 shares in the company, valued at $1,848,916.96. This represents a 3.90% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Ryan B. Bell sold 2,500 shares of the firm’s stock in a transaction that occurred on Wednesday, December 10th. The shares were sold at an average price of $55.00, for a total value of $137,500.00. Following the transaction, the insider directly owned 55,410 shares of the company’s stock, valued at approximately $3,047,550. This trade represents a 4.32% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 2.54% of the company’s stock.

Hedge Funds Weigh In On Encore Capital Group

A number of hedge funds have recently bought and sold shares of ECPG. Stephens Investment Management Group LLC increased its stake in Encore Capital Group by 4.8% during the 3rd quarter. Stephens Investment Management Group LLC now owns 1,308,252 shares of the asset manager’s stock valued at $54,606,000 after purchasing an additional 59,421 shares in the last quarter. Geode Capital Management LLC increased its position in shares of Encore Capital Group by 2.5% during the second quarter. Geode Capital Management LLC now owns 583,148 shares of the asset manager’s stock valued at $22,577,000 after acquiring an additional 14,353 shares in the last quarter. AQR Capital Management LLC raised its holdings in Encore Capital Group by 78.0% in the 4th quarter. AQR Capital Management LLC now owns 412,498 shares of the asset manager’s stock worth $22,419,000 after acquiring an additional 180,733 shares during the last quarter. Heartland Advisors Inc. lifted its position in Encore Capital Group by 10.0% in the 4th quarter. Heartland Advisors Inc. now owns 385,830 shares of the asset manager’s stock valued at $20,970,000 after acquiring an additional 34,980 shares in the last quarter. Finally, Barclays PLC boosted its stake in Encore Capital Group by 11.8% during the 4th quarter. Barclays PLC now owns 371,916 shares of the asset manager’s stock valued at $20,214,000 after purchasing an additional 39,214 shares during the last quarter.

Encore Capital Group Trading Up 8.6%

The stock has a fifty day simple moving average of $56.16 and a 200 day simple moving average of $49.18. The company has a debt-to-equity ratio of 4.13, a quick ratio of 0.66 and a current ratio of 0.66. The firm has a market cap of $1.43 billion, a P/E ratio of -35.22 and a beta of 1.41.

Encore Capital Group Company Profile

Encore Capital Group, Inc is a global specialty finance company that focuses on the purchase and management of nonperforming consumer receivables. Through its subsidiaries, the company acquires charged-off debt portfolios from credit card issuers, banks, and other financial institutions, and seeks to recover outstanding balances through a combination of customer outreach, payment arrangements, and, where appropriate, legal collection efforts. Encore’s business model emphasizes compliance with regulatory and industry standards to ensure ethical and transparent debt-recovery practices.

Headquartered in San Diego, California, Encore operates across North America and Europe.