Atlanticus (NASDAQ:ATLC) Sees Large Volume Increase Following Earnings Beat

Shares of Atlanticus Holdings Corporation (NASDAQ:ATLC) saw unusually-high trading volume on Friday after the company announced better than expected quarterly earnings. Approximately 73,397 shares were traded during mid-day trading, a decline of 30% from the previous session’s volume of 105,079 shares.The stock last traded at $103.6740 and had previously closed at $111.79.

The credit services provider reported $2.50 earnings per share for the quarter, topping the consensus estimate of $2.42 by $0.08. Atlanticus had a net margin of 5.86% and a return on equity of 23.43%. The business had revenue of $744.31 million during the quarter, compared to the consensus estimate of $716.35 million.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on ATLC shares. Citigroup restated an “outperform” rating on shares of Atlanticus in a report on Thursday, July 16th. Jefferies Financial Group boosted their price objective on Atlanticus from $100.00 to $115.00 and gave the company a “buy” rating in a research report on Wednesday, July 8th. Weiss Ratings raised Atlanticus from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday, June 11th. Capital One Financial set a $144.00 target price on shares of Atlanticus in a report on Monday, July 13th. Finally, BTIG Research upped their price target on shares of Atlanticus from $105.00 to $179.00 and gave the company a “buy” rating in a report on Tuesday, June 30th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, Atlanticus presently has an average rating of “Moderate Buy” and a consensus price target of $126.00.

Insiders Place Their Bets

In related news, CEO Jeffrey A. Howard sold 10,000 shares of the business’s stock in a transaction dated Tuesday, June 30th. The stock was sold at an average price of $103.01, for a total transaction of $1,030,100.00. Following the transaction, the chief executive officer owned 663,265 shares in the company, valued at $68,322,927.65. The trade was a 1.49% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, major shareholder Frank J. Hanna III sold 15,676 shares of the company’s stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $104.26, for a total value of $1,634,379.76. Following the transaction, the insider directly owned 259,392 shares of the company’s stock, valued at $27,044,209.92. The trade was a 5.70% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 75,000 shares of company stock valued at $7,868,627 over the last three months. Company insiders own 51.00% of the company’s stock.

Institutional Trading of Atlanticus

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Royal Bank of Canada boosted its holdings in Atlanticus by 274.6% in the first quarter. Royal Bank of Canada now owns 23,314 shares of the credit services provider’s stock valued at $1,193,000 after acquiring an additional 17,091 shares in the last quarter. AQR Capital Management LLC bought a new position in Atlanticus in the 1st quarter worth $1,083,000. Jones Financial Companies Lllp bought a new position in Atlanticus in the 1st quarter worth $71,000. Empowered Funds LLC lifted its position in shares of Atlanticus by 47.3% in the 1st quarter. Empowered Funds LLC now owns 38,312 shares of the credit services provider’s stock worth $1,960,000 after purchasing an additional 12,308 shares during the period. Finally, JPMorgan Chase & Co. lifted its position in shares of Atlanticus by 241.1% in the 2nd quarter. JPMorgan Chase & Co. now owns 18,039 shares of the credit services provider’s stock worth $988,000 after purchasing an additional 12,751 shares during the period. Hedge funds and other institutional investors own 14.15% of the company’s stock.

Atlanticus Price Performance

The business’s 50 day moving average price is $97.77 and its two-hundred day moving average price is $75.08. The stock has a market cap of $1.53 billion, a P/E ratio of 15.11 and a beta of 2.11. The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt-to-equity ratio of 1.08.

About Atlanticus

Atlanticus Holdings Corporation is a specialty financial services holding company that provides credit products and solutions to consumers across the United States. Through its subsidiaries, the company offers proprietary credit card programs, installment loan products and deposit accounts designed to serve customers who may have limited access to traditional credit. Atlanticus markets its offerings through a variety of channels, including direct‐to‐consumer online platforms, mail order, call centers and partnerships with retail and e-commerce businesses.

The company underwrites and services credit card portfolios under private-label and co-branded agreements, combining technology‐enabled underwriting with tailored customer service.