ATLC - Atlanticus Holdings: We See Continued Strong Performance In Q1 2021

• Atlanticus recently released its results for the first quarter of 2021, which we believe showed continued strong earnings, cash flow, and operating metrics.
• We read that Atlanticus reported $1.91 of earnings per diluted share for the quarter, bringing earnings per diluted share for the last twelve months to $5.69.
• We calculate that the company produced $59.0 million, or $2.82 per share, of level free cash flow for the quarter, increasing the run-rate from $49.8 million in the fourth quarter.
• Despite strong consumer payment trends in the seasonally higher first quarter and ongoing government stimulus, we observe that the company managed to grow its net loan portfolio.
• This report reinforces our belief that the stock is worth in excess of $50 per share, providing significant potential upside from the current trading levels of approximately $30 per share.

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