Medallion Financial (NASDAQ:MFIN) Cut to "Strong Sell" at Zacks Research

Key Points

• Zacks Research downgraded Medallion Financial from “strong buy” to “strong sell.” Other analysts remain cautious, with four Hold ratings and one Sell rating, producing a consensus “Reduce” rating and a $12.00 price target.
• Medallion Financial shares opened at $11.81, near their 52-week high of $12.26, with a market capitalization of approximately $271 million. The company recently reported quarterly EPS of $0.31, beating the $0.29 consensus estimate, while revenue also exceeded expectations.
• Institutional investors own 40.56% of the company, with BlackRock and Tieton Capital Management among investors establishing new positions during the second quarter.

Medallion Financial (NASDAQ:MFIN - Get Free Report) was downgraded by Zacks Research from a "strong-buy" rating to a "strong sell" rating in a research note issued on Monday, Zacks reports.

Other analysts have also issued reports about the stock. Raymond James Financial started coverage on shares of Medallion Financial in a report on Thursday, July 9th. They issued a "market perform" rating for the company. Piper Sandler restated a "neutral" rating and set a $12.00 price target (up from $10.50) on shares of Medallion Financial in a report on Friday. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Medallion Financial in a research report on Tuesday, September 29th. Finally, UBS Group reaffirmed a "neutral" rating on shares of Medallion Financial in a report on Friday. Four analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Medallion Financial presently has an average rating of "Reduce" and a consensus price target of $12.00.

Medallion Financial Stock Performance

NASDAQ MFIN opened at $11.81 on Monday. The stock has a market cap of $271.16 million, a P/E ratio of 8.88 and a beta of 0.79. Medallion Financial has a fifty-two week low of $7.85 and a fifty-two week high of $12.26. The stock has a 50 day simple moving average of $11.58 and a two-hundred day simple moving average of $10.21. The company has a debt-to-equity ratio of 0.57, a quick ratio of 1.21 and a current ratio of 1.22.

Medallion Financial (NASDAQ:MFIN - Get Free Report) last posted its earnings results on Wednesday, July 29th. The credit services provider reported $0.31 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.29 by $0.02. The firm had revenue of $84.38 million for the quarter, compared to analysts' expectations of $58.98 million. Medallion Financial had a return on equity of 7.11% and a net margin of 9.25%. On average, analysts forecast that Medallion Financial will post 1.15 earnings per share for the current year.

Institutional Trading of Medallion Financial

A number of hedge funds have recently bought and sold shares of the company. BlackRock Inc. bought a new stake in shares of Medallion Financial during the 2nd quarter valued at about $12,450,000. Tieton Capital Management LLC bought a new position in shares of Medallion Financial in the 2nd quarter worth approximately $10,297,000. Sei Investments Co. boosted its holdings in shares of Medallion Financial by 124.0% in the first quarter. Sei Investments Co. now owns 490,972 shares of the credit services provider's stock worth $4,203,000 after buying an additional 271,789 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. purchased a new position in shares of Medallion Financial in the second quarter worth approximately $2,057,000. Finally, De Lisle Partners LLP purchased a new stake in Medallion Financial during the second quarter valued at approximately $2,027,000. Hedge funds and other institutional investors own 40.56% of the company's stock.

About Medallion Financial

Medallion Financial Corp. NASDAQ: MFIN is a specialty finance company that provides financing to consumers, small businesses and commercial vehicle operators. The company operates primarily through Medallion Bank and Medallion Funding, offering loans through direct and indirect lending channels.

Medallion Bank provides consumer financing for products and services such as home improvements, recreational vehicles, boats and other lifestyle purchases. Medallion Funding focuses on commercial lending, including loans secured by taxi medallions and financing for taxi and other transportation-related businesses.

Founded in 1995, Medallion Financial has historically served borrowers in the United States through relationships with dealers, contractors and other business partners.

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