Onity Group (NYSE:ONIT) Stock Rating Raised to "Sell" at Wall Street Zen

Key Points

• Wall Street Zen upgraded Onity Group’s rating from “strong sell” to “sell,” while the broader analyst consensus remains “Moderate Buy” with a $50.00 target price.
• Onity Group shares opened at $27.50, well below the $50.00 consensus target, with a one-year range of $24.86 to $54.10 and a market capitalization of approximately $229.6 million.
• The company reported a quarterly loss of $1.53 per share, missing the $0.95 consensus estimate, although revenue of $281.0 million exceeded expectations of $272.45 million.

Onity Group (NYSE:ONIT - Get Free Report) was upgraded by analysts at Wall Street Zen from a "strong sell" rating to a "sell" rating in a note issued to investors on Monday, Wall Street Zen reports.

A number of other equities research analysts have also recently weighed in on ONIT. Keefe, Bruyette & Woods cut their price target on Onity Group from $58.00 to $55.00 and set an "outperform" rating on the stock in a report on Wednesday, August 12th. BTIG Research decreased their price objective on Onity Group from $50.00 to $45.00 and set a "buy" rating for the company in a research note on Monday, October 12th. Finally, Weiss Ratings downgraded Onity Group from a "sell (d+)" rating to a "sell (d)" rating in a report on Wednesday, October 21st. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $50.00.

Onity Group Price Performance

NYSE:ONIT opened at $27.50 on Monday. Onity Group has a one year low of $24.86 and a one year high of $54.10. The stock has a 50 day moving average price of $30.41 and a 200 day moving average price of $37.99. The stock has a market cap of $229.62 million, a PE ratio of 1.78 and a beta of 1.48. The company has a debt-to-equity ratio of 11.41, a quick ratio of 16.60 and a current ratio of 16.60.

Onity Group (NYSE:ONIT - Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported ($1.53) earnings per share for the quarter, missing the consensus estimate of $0.95 by ($2.48). Onity Group had a return on equity of 8.27% and a net margin of 12.34%. The business had revenue of $281.00 million for the quarter, compared to analysts' expectations of $272.45 million.

Hedge Funds Weigh In On Onity Group

Institutional investors have recently modified their holdings of the stock. Bank of New York Mellon Corp purchased a new stake in Onity Group in the 2nd quarter valued at $1,062,000. Dimensional Fund Advisors LP grew its holdings in shares of Onity Group by 5.8% during the first quarter. Dimensional Fund Advisors LP now owns 464,448 shares of the company's stock valued at $18,238,000 after purchasing an additional 25,390 shares during the last quarter. Gratia Capital LLC bought a new position in Onity Group during the 2nd quarter valued at $835,000. Prescott Group Capital Management L.L.C. raised its position in Onity Group by 7.7% during the third quarter. Prescott Group Capital Management L.L.C. now owns 228,991 shares of the company's stock valued at $6,487,000 after buying an additional 16,406 shares during the period. Finally, Bank of America Corp DE raised its holdings in Onity Group by 120.4% during the first quarter. Bank of America Corp DE now owns 16,734 shares of the company's stock valued at $657,000 after buying an additional 9,142 shares in the last quarter. 70.16% of the stock is owned by hedge funds and other institutional investors.

Onity Group Company Profile

Onity Group Inc NYSE: ONIT, formerly known as Ocwen Financial Corporation, is a financial services company focused on residential mortgage loan servicing and origination. The company works with mortgage investors, lenders, financial institutions and government-sponsored entities to manage home loans throughout their life cycle.

Through its servicing operations, Onity provides payment processing, borrower assistance, default management, foreclosure prevention and other administrative services for residential mortgages.

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