Encore Capital Group (NASDAQ:ECPG) Shares Gap Up After Earnings Beat

Encore Capital Group Inc (NASDAQ:ECPG)’s stock price gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $92.69, but opened at $101.19. Encore Capital Group shares last traded at $96.61, with a volume of 87,257 shares.

The asset manager reported $2.81 EPS for the quarter, topping analysts’ consensus estimates of $2.67 by $0.14. The company had revenue of $491.87 million for the quarter, compared to analysts’ expectations of $455.10 million. Encore Capital Group had a return on equity of 30.70% and a net margin of 16.00%.Encore Capital Group’s revenue was up 11.3% on a year-over-year basis. During the same quarter last year, the business earned $2.49 earnings per share. Encore Capital Group has set its FY 2026 guidance at 13.000-14.000 EPS.

More Encore Capital Group News

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

• Positive Sentiment: Encore reported second-quarter EPS of $2.81, above the $2.67 analyst consensus cited by MarketBeat, while revenue reached $491.87 million, exceeding the $455.10 million estimate. Revenue increased 11.3% year over year, and EPS rose from $2.49 in the comparable quarter. Encore Capital Group earnings report
• Positive Sentiment: Management issued full-year 2026 EPS guidance of $13.00 to $14.00, with the midpoint above the $13.00 consensus estimate referenced in the company update. The guidance reinforces expectations for continued earnings strength. Encore Capital Group second-quarter financial results
• Positive Sentiment: The reported 16.0% net margin and 30.7% return on equity highlight strong profitability, supporting the positive investor response. The earnings call and company materials provide additional context on quarterly performance and the outlook. Encore Capital Group Q2 2026 earnings call transcript
• Neutral Sentiment: Although most cited estimates indicate an earnings beat, Zacks reported that the $2.81 EPS result was below its higher $3.07 consensus forecast. This conflicting benchmark may limit some of the upside reaction, despite the stronger revenue performance. Encore Capital Group earnings estimates

Wall Street Analysts Forecast Growth

ECPG has been the topic of a number of research analyst reports. Wall Street Zen downgraded Encore Capital Group from a “strong-buy” rating to a “hold” rating in a report on Saturday, May 9th. Citigroup reaffirmed a “market outperform” rating on shares of Encore Capital Group in a research note on Wednesday, June 17th. Citizens Jmp boosted their target price on Encore Capital Group from $108.00 to $115.00 and gave the stock a “market outperform” rating in a research note on Wednesday, June 17th. Truist Financial raised their price target on shares of Encore Capital Group from $100.00 to $105.00 and gave the company a “buy” rating in a research note on Thursday, May 7th. Finally, Weiss Ratings raised shares of Encore Capital Group from a “hold (c)” rating to a “buy (b-)” rating in a report on Monday. Five equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $88.00.

Insider Transactions at Encore Capital Group

In other Encore Capital Group news, insider John Yung sold 2,000 shares of the stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $82.08, for a total transaction of $164,160.00. Following the transaction, the insider directly owned 64,570 shares in the company, valued at approximately $5,299,905.60. This represents a 3.00% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 3.00% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of ECPG. IFP Advisors Inc boosted its stake in Encore Capital Group by 1,729.6% during the fourth quarter. IFP Advisors Inc now owns 494 shares of the asset manager’s stock worth $27,000 after acquiring an additional 467 shares in the last quarter. EverSource Wealth Advisors LLC grew its holdings in Encore Capital Group by 185.7% in the fourth quarter. EverSource Wealth Advisors LLC now owns 717 shares of the asset manager’s stock worth $39,000 after purchasing an additional 466 shares during the period. USA Financial Formulas bought a new stake in Encore Capital Group in the first quarter valued at $46,000. Allworth Financial LP increased its stake in Encore Capital Group by 29.1% in the fourth quarter. Allworth Financial LP now owns 1,139 shares of the asset manager’s stock valued at $62,000 after purchasing an additional 257 shares in the last quarter. Finally, Tower Research Capital LLC TRC increased its stake in Encore Capital Group by 168.9% in the second quarter. Tower Research Capital LLC TRC now owns 2,716 shares of the asset manager’s stock valued at $105,000 after purchasing an additional 1,706 shares in the last quarter.

Encore Capital Group Stock Up 5.7%

The firm’s fifty day moving average price is $87.53 and its two-hundred day moving average price is $76.04. The stock has a market cap of $2.10 billion, a price-to-earnings ratio of 7.62 and a beta of 1.27. The company has a debt-to-equity ratio of 3.90, a current ratio of 0.90 and a quick ratio of 0.90.

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.