Better Home & Finance (NASDAQ:BETR) Stock Price Target Cut by B. Riley Financial

Key Points

• B. Riley cut its price target on Better Home & Finance from $26 to $23 but maintained a Buy rating; the new target implies 30.83% upside from the prior close.
• Quarterly results missed expectations: Better reported a loss of $1.93 per share versus the expected $1.44 loss, and revenue of $45.12 million also fell short of estimates.
• The article notes a pending securities class action, with a November 20 lead-plaintiff deadline. The allegations concern the company’s $1 billion monthly funded-volume target and have not been proven.

Better Home & Finance (NASDAQ:BETR - Get Free Report) had its target price reduced by B. Riley Financial from $26.00 to $23.00 in a note issued to investors on Tuesday, Benzinga reports. The brokerage currently has a "buy" rating on the stock. B. Riley Financial's price objective suggests a potential upside of 30.83% from the stock's previous close.

Other analysts have also issued reports about the stock. Zacks Research upgraded shares of Better Home & Finance to a "hold" rating in a research report on Wednesday, July 29th. Roth Capital set a $25.00 price target on shares of Better Home & Finance in a research report on Thursday, August 13th. Wall Street Zen downgraded Better Home & Finance from a "sell" rating to a "strong sell" rating in a research note on Saturday, September 12th. Canaccord Genuity Group reissued a "buy" rating and set a $42.00 price objective on shares of Better Home & Finance in a report on Tuesday, August 4th. Finally, CLSA raised Better Home & Finance to a "buy" rating in a research report on Wednesday, September 9th. Eight analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $23.71.

Better Home & Finance Stock Performance

Shares of NASDAQ:BETR traded down $2.57 during trading hours on Tuesday, hitting $17.58. 328,871 shares of the company's stock traded hands, compared to its average volume of 579,311. The company has a market cap of $334.02 million, a price-to-earnings ratio of -1.58 and a beta of 1.66. The company's fifty day simple moving average is $13.76 and its two-hundred day simple moving average is $24.65. Better Home & Finance has a 52 week low of $7.51 and a 52 week high of $65.32.

Better Home & Finance (NASDAQ:BETR - Get Free Report) last announced its earnings results on Monday, November 9th. The company reported ($1.93) EPS for the quarter, missing the consensus estimate of ($1.44) by ($0.49). Better Home & Finance had a negative return on equity of 409.62% and a negative net margin of 94.52%. The firm had revenue of $45.12 million during the quarter. On average, analysts anticipate that Better Home & Finance will post -7.98 EPS for the current fiscal year.

Insider Buying and Selling at Better Home & Finance

In other news, CTO Jonsson Sigurgeir Orn sold 2,210 shares of the business's stock in a transaction that occurred on Thursday, November 5th. The stock was sold at an average price of $18.94, for a total transaction of $41,857.40. Following the transaction, the chief technology officer directly owned 9,602 shares in the company, valued at $181,861.88. The trade was a 18.71% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, General Counsel Paula Tuffin sold 3,108 shares of the firm's stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $12.36, for a total value of $38,414.88. Following the sale, the general counsel directly owned 40,931 shares of the company's stock, valued at approximately $505,907.16. This trade represents a 7.06% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders sold 11,170 shares of company stock worth $149,505. Company insiders own 27.72% of the company's stock.

Hedge Funds Weigh In On Better Home & Finance

Institutional investors have recently modified their holdings of the business. Whetstone Capital Advisors LLC acquired a new position in shares of Better Home & Finance in the 2nd quarter valued at about $6,985,000. Fifth Third Bancorp acquired a new position in shares of Better Home & Finance in the 1st quarter valued at approximately $1,460,000. Russell Investments Group Ltd. raised its stake in shares of Better Home & Finance by 14.9% in the 3rd quarter. Russell Investments Group Ltd. now owns 4,778 shares of the company's stock valued at $53,000 after purchasing an additional 618 shares in the last quarter. Jefferies Financial Group Inc. bought a new position in shares of Better Home & Finance in the 3rd quarter worth about $306,000. Finally, State of Wyoming grew its position in shares of Better Home & Finance by 210.4% during the third quarter. State of Wyoming now owns 9,494 shares of the company's stock worth $104,000 after acquiring an additional 6,435 shares during the last quarter. 20.94% of the stock is owned by institutional investors and hedge funds.

Better Home & Finance News Roundup

Here are the key news stories impacting Better Home & Finance this week:

• Negative Sentiment: Q3 loss missed expectations: Better reported a loss of about $1.9 per share, compared with analysts’ expected loss of $1.44. Revenue was $45.12 million, which Zacks said also fell short of estimates. The earnings shortfall reinforces concerns about the company’s profitability. Zacks Q3 results report
• Negative Sentiment: Securities class action adds legal uncertainty: Law firms are publicizing a pending lawsuit and a November 20 lead-plaintiff deadline. The suit alleges Better reaffirmed a $1 billion monthly funded-volume target despite a slowing loan-conversion funnel, and that investors were not adequately informed. Continued attention to the allegations may weigh on sentiment, though the claims have not been proven. Class action deadline notice

Better Home & Finance Company Profile

Better Home & Finance Holding Company is a financial technology company that provides digital services for homeownership. Through its Better brand, the company offers an online platform designed to simplify the process of buying, financing and protecting a home. Its principal businesses include Better Mortgage, a digital mortgage lender and broker; Better Real Estate, which provides residential real estate brokerage services; Better Cover, an insurance platform; and Better Settlement Services, which supports title and closing activities.

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