Encore Capital stock hits 52-week low at $31.51 amid market challenges

Published 04/04/2025, 15:24
Encore Capital stock hits 52-week low at $31.51 amid market challenges

Encore Capital Group Inc. (NASDAQ:ECPG) stock has touched a 52-week low, dipping to $31.51, as the company faces a challenging market environment. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 10.47, though its stock has experienced significant volatility with a beta of 1.73. This latest price level reflects a significant downturn from the previous year, with the stock experiencing a 1-year change of -28.82%. Investors are closely monitoring the debt management company’s performance, as it navigates through economic pressures that have impacted its sector, leading to this notable decline in its stock price over the past year. Despite current challenges, analysts maintain optimistic price targets ranging from $55 to $66, suggesting potential upside. The current 52-week low serves as a critical point for the company, as market participants consider the potential for a rebound or further declines in the future. For deeper insights into ECPG’s valuation and growth prospects, including additional ProTips and comprehensive financial analysis, visit InvestingPro.

In other recent news, Encore Capital Group reported a significant fourth-quarter loss, falling short of Wall Street expectations. The company posted a fourth-quarter earnings per share (EPS) of ($9.42), contrasting sharply with the analyst estimate of $1.83. Revenue for the quarter was also below the consensus estimate, at $265.62 million against the expected $372.15 million. This financial downturn was attributed to non-cash charges, including a $101 million goodwill impairment related to restructuring actions in their Cabot (NYSE:CBT) business in the UK and Europe. Despite these setbacks, Encore Capital highlighted a year of growth with a 26% increase in global portfolio purchases and a 16% rise in global collections compared to 2023. Analysts at Citizens JMP maintained a Market Outperform rating for Encore Capital but lowered the price target from $65.00 to $55.00, citing operational challenges in the UK market. The company plans to resume share repurchases in 2025 and expects global portfolio purchases to exceed $1.35 billion, with global collections projected to increase by 11% to $2.4 billion.

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