Bitcoin price today: gains to $120k, near record high on U.S. regulatory cheer
Encore Capital Group, Inc. (NASDAQ:ECPG) stock has touched a 52-week low, dipping to $39.4 as the debt recovery company faces a challenging market environment. According to InvestingPro data, analysts maintain a positive outlook with price targets ranging from $57 to $66, suggesting potential upside despite current market conditions. The company’s strong liquidity position is reflected in its impressive current ratio of 14.6x. This latest price level reflects a significant retreat from better-performing times, with the stock experiencing a 1-year change of -16.23%. With a beta of 1.55, the stock shows higher volatility than the broader market. Investors are closely monitoring Encore’s strategic moves and market conditions, as the company navigates through the headwinds that have led to this year-long decline. The 52-week low serves as a critical point for the company, as market participants consider the potential for a rebound or further downward trends. InvestingPro analysis indicates the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report covering this $950 million market cap company.
In other recent news, Encore Capital Group has reported its Q4 2024 earnings, showcasing significant growth in global portfolio purchases and collections despite a notable revenue reduction and goodwill impairment. The company achieved a record $1.35 billion in global portfolio purchases, marking a 26% increase from the previous year, alongside a 16% rise in global collections to $2.16 billion. However, revenue was impacted by a $129 million reduction and a $101 million goodwill impairment. Encore Capital plans to resume share repurchases in 2025 as part of its strategic financial management.
Citizens JMP recently adjusted its outlook on Encore Capital, lowering the price target from $65.00 to $55.00 but maintaining a Market Outperform rating. The adjustment reflects challenges in the UK market and a $129 million write-down in expected future recoveries. Despite these challenges, Encore Capital’s leverage ratio improved from 2.9x to 2.6x, and the company anticipates further growth in global collections and portfolio purchasing in 2025. The company also exited the Italian NPL market as part of strategic adjustments.
The firm’s management has emphasized its focus on reducing leverage and plans to recommence share repurchases in 2025, aiming for a leverage ratio of 2.5 times. CEO Ashish Masih highlighted the company’s mission to support consumer economic freedom, while CFO Jonathan Clark noted the importance of cash flow. These developments indicate a strategic focus on operational efficiency and market opportunities in the coming year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.