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Investing.com - Atlanticus Holdings Corp. (NASDAQ:ATLC), currently trading at $58.37 and showing strong financial health according to InvestingPro metrics, is acquiring PROG Holdings’ credit card portfolio for $150 million in cash, according to Citizens analyst David Scharf, who reiterated a Market Outperform rating and $95.00 price target on the stock.
The acquisition involves $165 million in receivables managed through PROG’s Vive Financial segment. While relatively small at 2% to 3% of Citizens’ forecasted third-quarter loan book, the purchase strengthens Atlanticus’s position in the retail card market.
This transaction follows Atlanticus’s recent Mercury Financial acquisition, which approximately doubled its owned receivables. The company has demonstrated impressive revenue growth of 26.2% over the last twelve months. Despite these positive developments, Atlanticus shares have declined about 30% from their 52-week high of $78.91 reached in September, amid a broader pullback in consumer finance stocks. InvestingPro analysis reveals management has been actively buying back shares during this period, showing confidence in the company’s prospects.
Citizens maintains its $95 price target, representing approximately 9 times its 2027 EPS estimate discounted back by one year. The firm sees a disconnect between Atlanticus’s market share gains, growth, credit performance, and weakened competition versus its current valuation at roughly 6 times 2026 estimated earnings per share. Trading at a P/E ratio of 10.17x and maintaining strong liquidity with a current ratio of 14.63, the company appears positioned for continued growth. Get access to 8 more key insights about ATLC with an InvestingPro subscription, including detailed Fair Value analysis and comprehensive financial health scores.
The $150 million cash transaction for the credit card portfolio continues what Citizens describes as "positive news flow" for Atlanticus in recent months.
In other recent news, PROG Holdings , Inc. announced the sale of its Vive Financial credit card receivables portfolio to Atlanticus Holdings Corporation for approximately $150 million in cash. This transaction involves Atlanticus acquiring around $165 million in credit card receivables from PROG Holdings. In a related development, Atlanticus has also made headlines with its acquisition of Mercury Financial, a significant credit card issuer focused on near-prime customers, in a $162 million cash deal. This marks Atlanticus’s first acquisition in nearly two decades and includes potential incentives based on the credit performance of the acquired portfolio.
Following these developments, JMP Securities raised its price target for Atlanticus to $95, while BTIG increased its target to $105, both citing the Mercury Finance acquisition. BTIG also revised its 2027 earnings per share estimate for Atlanticus, projecting a 32% increase to $15.94. In other company news, AlphaTON Capital Corp revealed a non-binding letter of intent to explore the tokenization of its mesothelioma treatment program. This initiative aims to integrate blockchain technology with cancer therapeutics, reflecting AlphaTON’s strategy to merge its operations with its oncology subsidiary, Cyncado Therapeutics.
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