Blend Labs (NYSE:BLND) Downgraded to Strong Sell Rating by Zacks Research

Key Points

• Zacks Research downgraded Blend Labs from hold to strong sell, adding a bearish signal to the stock’s recent analyst coverage.
• Other analysts remain mixed: recent ratings include buy and outperform calls, but several firms also cut price targets; the stock’s average analyst rating is still Hold with a $3.32 target price.
• Blend Labs shares were up 2.6% to $1.78, but the stock still trades well below its 52-week high of $4.49 and has a market cap of about $432 million.

Blend Labs (NYSE:BLND - Get Free Report) was downgraded by stock analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Monday,Zacks.com reports.

Several other research analysts also recently weighed in on BLND. The Goldman Sachs Group set a $3.50 price target on shares of Blend Labs in a research report on Friday, May 8th. Canaccord Genuity Group reduced their price objective on Blend Labs from $5.25 to $4.50 and set a "buy" rating for the company in a research note on Friday, May 15th. Citigroup reaffirmed an "outperform" rating on shares of Blend Labs in a report on Friday, May 8th. Citizens Jmp lowered their target price on Blend Labs from $5.00 to $4.00 and set a "market outperform" rating on the stock in a research report on Friday, May 8th. Finally, Keefe, Bruyette & Woods cut their price target on Blend Labs from $2.25 to $1.90 and set a "market perform" rating for the company in a report on Friday, May 8th. Four equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Hold" and an average target price of $3.32.

Blend Labs Trading Up 2.6%

BLND opened at $1.78 on Monday. The company's 50 day moving average is $1.64 and its 200 day moving average is $1.92. The company has a market cap of $432.18 million, a price-to-earnings ratio of -17.85 and a beta of 1.10. Blend Labs has a 12-month low of $1.18 and a 12-month high of $4.49.

Hedge Funds Weigh In On Blend Labs

A number of hedge funds have recently modified their holdings of BLND. Capricorn Fund Managers Ltd bought a new position in shares of Blend Labs in the first quarter worth about $11,049,000. Irenic Capital Management LP purchased a new stake in shares of Blend Labs during the fourth quarter worth about $9,469,000. Park West Asset Management LLC bought a new stake in Blend Labs during the 3rd quarter valued at approximately $6,205,000. Potrero Capital Research LLC bought a new stake in Blend Labs during the 4th quarter valued at approximately $5,050,000. Finally, Marshall Wace LLP lifted its holdings in Blend Labs by 157.6% in the 2nd quarter. Marshall Wace LLP now owns 2,522,141 shares of the company's stock worth $8,323,000 after purchasing an additional 1,543,220 shares in the last quarter. 52.56% of the stock is currently owned by institutional investors.

Blend Labs Company Profile

Blend Labs, Inc operates as a financial technology company that offers a digital consumer banking platform designed to simplify and automate the lending and account opening processes for banks and credit unions. Its cloud-native software enables financial institutions to deliver a more seamless customer experience by consolidating multiple steps—such as application intake, identity verification, document collection and underwriting—into a unified digital workflow. Blend's platform is built to integrate with existing core banking systems and third-party data providers, allowing clients to accelerate loan origination and deposit account opening while maintaining compliance and security standards.

The company's product suite includes solutions for mortgage origination, home equity lending, consumer personal lending and deposit account opening.

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