Here’s The Case for and Against Encore Capital Group, Inc. (ECPG)

On Thursday, shares of Encore Capital Group, Inc. (NASDAQ:ECPG) marked $34.97 per share versus a previous $36.68 closing price. With having a -4.66% loss, an insight into the fundamental values of Encore Capital Group, Inc., investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. ECPG showed a rise of 48.81% within its YTD performance, with highs and lows between $20.38 – $39.19 during the period of 52 weeks, compared to the simple moving average of 11.36% in the period of the last 200 days.

Oppenheimer equity researchers changed the status of Encore Capital Group, Inc. (NASDAQ: ECPG) shares from “Perform” to a “Outperform” rating in the report published on January 15th, 2019. Other analysts, including Buckingham Research, also published their reports on ECPG shares. Buckingham Research repeated the rating from the previous report, marking ECPG under “Buy” rating, in the report published on January 3rd, 2019. Additionally, ECPG shares got another “Outperform” rating from Northland Capital. On the other hand, Citigroup Downgrade the “Neutral” rating for ECPG shares, as published in the report on September 20th, 2016. Northland Capital seems to be going bullish on the price of ECPG shares, based on the price prediction for ECPG. Another “Buy” rating came from Citigroup.

Encore Capital Group, Inc. (ECPG) Analysis

The present dividend yield for ECPG owners is set at 0, marking the return investors will get regardless of the company’s performance in the upcoming period. However, in order for the company to be able to pay its dividends, just like it is the case with Encore Capital Group, Inc., the company needs to provide a healthy cash flow, currently at the value of 7.87. In addition, the growth of sales from quarter to quarter is recording -0.80%, hinting the company’s progress in the upcoming progress.

In order to gain a clear insight on the performance of Encore Capital Group, Inc. (ECPG) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of 18.20% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.

Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while ECPG is currently recording an average of 326.60K in volumes. The volatility of the stock on monthly basis is set at 3.63%, while the weekly volatility levels are marked at 3.23%with 2.55% of gain in the last seven days. Additionally, long-term investors are predicting the target price of $42.57, indicating growth from the present price of $34.97, which can represent yet another valuable research and analysis points that can help you decide whether to invest in ECPG or pass.

What to Look for When Analyzing Encore Capital Group, Inc. Shares?

Encore Capital Group, Inc. (ECPG) is based in the USA and it represents one of the well-known company operating with Financial sector. If you wish to compare ECPG shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of 7.09 for Encore Capital Group, Inc., while the value 5.62 can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value 4.93 is supported by the yearly ESP growth of 26.60%.

Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at 2.20%, which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.

Are Institutional Investors Increasing Stakes in ECPG Shares?

It appears that more than several institutional investors and hedge funds decided to increase stakes in ECPG in the recent period. That is how BlackRock Fund Advisors now has an increase position in ECPG by 5.47% in the first quarter, owning 3.8 million shares of ECPG stocks, with the value of $140.16 million after the purchase of an additional 197,004 shares during the last quarter. In the meanwhile, T. Rowe Price Associates, Inc. also increased their stake in ECPG shares changed 6.15% in the first quarter, which means that the company now owns 3.31 million shares of company, all valued at $122.07 million after the acquisition of additional 191,768 shares during the last quarter.

Dimensional Fund Advisors LP acquired a new position in Encore Capital Group, Inc. during the first quarter, with the value of $62.4 million, and Fidelity Management & Research Co increased their stake in the company’s shares by 82.69% in the first quarter, now owning 662,969 shares valued at $54.05 million after the acquisition of the additional 1.46 million shares during the last quarter. In the end, Invesco Canada Ltd. increased their position by 11.15% during the first quarter, now owning 918708 ECPG shares, now holding the value of $33.9 million in ECPG with the purchase of the additional 12,905 shares during the period of the last quarter.