Welcome to our dedicated page for Encore Capital Group news (Ticker: ECPG), a resource for investors and traders seeking the latest updates and insights on Encore Capital Group stock.
Encore Capital Group, Inc. (NASDAQ: ECPG) is a prominent, international specialty finance company headquartered in San Diego, California. The company provides a comprehensive suite of debt management and recovery solutions for consumers and property owners across a diverse range of financial assets.
Encore operates primarily through its subsidiaries, purchasing portfolios of consumer receivables from major financial institutions such as banks, credit unions, and utility providers. The company collaborates closely with individuals to help them repay their obligations and work toward achieving financial recovery. Encore's unique approach focuses on building a partnership with consumers, enhancing their financial health over time.
One of Encore’s significant subsidiaries, Propel Financial Services, specializes in assisting property owners who are behind on their property taxes by structuring affordable monthly payment plans. Additionally, Encore's Midland Credit Management (MCM) focuses on overseeing the recovery of purchased receivables.
Encore reported strong results for the third quarter of 2023, with robust purchasing for its U.S. business at favorable returns and stable collections performance across key markets. The company’s U.S. portfolio supply has grown, driven by increased credit card lending and rising charge-off rates, leading to improved portfolio pricing and returns.
In Europe, Encore's Cabot business faces a competitive portfolio purchasing market, causing the company to reallocate capital to the more favorable U.S. market. Despite these challenges, Encore's disciplined strategy and robust balance sheet have resulted in a record year of capital deployment in the U.S. for 2023, with expectations for continued strong returns into 2024.
Apart from its core business activities, Encore is committed to corporate social responsibility. The company has partnered with Junior Achievement USA to support financial literacy and education across several U.S. locations, aligning with its mission to promote economic freedom.
As a publicly traded company, Encore Capital Group is listed on the NASDAQ Global Select Market and is a component of the Russell 2000, S&P SmallCap 600, and the Wilshire 4500 indices. With a strategic focus on sustainable financial recovery solutions, Encore continues to play a vital role in the consumer credit ecosystem.
Encore Capital Group (Nasdaq: ECPG) announced the pricing of £300 million in 5.375% senior secured notes due 2026, up from an initial £250 million. The notes, fully guaranteed by major subsidiaries, will pay interest semi-annually, starting February 15, 2021. Proceeds will be used to redeem part of the outstanding £512.9 million 7.5% notes due 2023 and to cover transaction costs. The company anticipates recording approximately $10 million in after-tax charges in Q4 2020. The offering is private and unregistered under the Securities Act.
Encore Capital Group (ECPG) announced plans to offer £250 million in senior secured notes due 2026, aimed at qualified institutional buyers. The offering is subject to market conditions and will be fully guaranteed by its material subsidiaries. Proceeds will be used to redeem a portion of existing £512.9 million senior secured notes due 2023 and cover related transaction fees. The notes will not be registered under the Securities Act and are being offered privately. Forward-looking statements highlight potential risks related to market conditions and business operations.
Encore Capital Group (NASDAQ: ECPG) reported a significant increase in third-quarter results for 2020, with GAAP net income rising 41% to $55 million ($1.72 per share) and non-GAAP adjusted net income increasing 42% to $74 million ($2.31 per share). Global collections reached a record $540 million, up 8% year-over-year, while Estimated Remaining Collections (ERC) grew 15% to $8.5 billion. Operating expenses rose 6% to $261 million, partly due to a $15 million CFPB settlement. The company implemented a new global funding structure to enhance financial flexibility, preparing for an anticipated increase in charged-off receivables in 2021.
Rosen Law Firm is investigating securities claims on behalf of shareholders of Encore Capital Group (ECPG) due to allegations of misleading business information. The Consumer Financial Protection Bureau (CFPB) filed a complaint on September 8, 2020, against Encore for violating a consent order by improperly suing consumers and failing to provide necessary documentation. Following this news, Encore's shares fell nearly 10%, dropping $3.59 to close at $42.29 on September 9, 2020.
Encore Capital Group (ECPG) announced a settlement with the Consumer Financial Protection Bureau (CFPB) over a lawsuit regarding compliance issues from a 2015 consent order. The company will pay a one-time $15 million charge and $9,000 to 14 consumers without any incremental operational impact. The settlement ends the previous consent order, and Encore has no ongoing issues with the CFPB. The company asserts that it had already addressed the minor compliance gaps cited in the suit years ago.
Encore Capital Group's subsidiary, Midland Credit Management (MCM), has received recognition for its commitment to diversity and inclusion by being named one of the “100 Best Companies for Women in India” for the third consecutive year. Additionally, MCM was awarded the “Champions of Inclusion” title in the Most Inclusive Companies Index for 2020. The awards reflect the organization's dedication to fostering an inclusive workplace environment that values diversity across various dimensions. Over 321 organizations participated in the awards.
Rosen Law Firm is investigating potential securities claims for shareholders of Encore Capital Group (ECPG) due to allegations of misleading business information. Following a complaint from the Consumer Financial Protection Bureau on September 8, 2020, which claimed violations related to documentation in consumer lawsuits, Encore's shares dropped nearly 10%, closing at $42.29 on September 9, 2020. The firm is preparing a securities lawsuit for affected shareholders. Investors are encouraged to register for the action through the firm's website.
Encore Capital Group (ECPG) announced its third quarter financial results will be released on November 2, 2020, after market close. The company will host a conference call at 2:00 p.m. PT / 5:00 p.m. ET on the same day, featuring CEO Ashish Masih and CFO Jonathan Clark. Investors and the public can access the live webcast through the company's Investor Relations webpage or via telephone. Encore specializes in debt recovery solutions, servicing portfolios of receivables globally, and is publicly traded on NASDAQ as part of significant indices like the Russell 2000.
Encore Capital Group (ECPG) will release its Q3 2020 financial results on November 2, 2020, after market close. A conference call featuring CEO Ashish Masih, CFO Jonathan Clark, and VP Bruce Thomas will discuss these results at 2:00 PM Pacific Time. Investors can access a live webcast on the Investor Relations page of Encore's website. A telephonic replay will be available for seven days post-call. Encore Capital specializes in debt recovery solutions and operates globally, purchasing and servicing receivables from major financial institutions.
Encore Capital Group (NASDAQ: ECPG) has completed a new global funding structure, consolidating the balance sheets of its primary units, Midland Credit Management and Cabot Credit Management. This move aims to enhance financial flexibility, improve the maturity profile, and reduce funding costs over time. Key components include a revised multi-currency revolving credit facility totaling $1,050 million, a €350 million issuance of senior secured notes due 2025, and repayment of existing domestic credit facilities. The company expects this structure will strengthen its credit profile and capitalize on changing credit cycles.
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