Finance of America Companies Inc. (NYSE:FOA) Stock Has Average Price Target of $30.50

Key Points

• Analysts hold a mixed view of FOA: Two rate it a sell, one a hold and two a buy, resulting in a consensus “Hold” rating and an average 12-month price target of $30.50.
• FOA shares opened at $13.47, well below the average analyst target, but have declined from a 52-week high of $29.79; the company has a market capitalization of approximately $233 million.
• The latest quarterly results fell short of expectations, with EPS of $0.84 versus $1.04 expected and revenue of $62.48 million versus $121.94 million forecast. Meanwhile, insiders have sold shares recently, while institutional investors own 97.20% of the stock.

Finance of America Companies Inc. (NYSE:FOA - Get Free Report) has received a consensus recommendation of "Hold" from the five ratings firms that are presently covering the company, MarketBeat reports. Two analysts have rated the stock with a sell rating, one has issued a hold rating and two have issued a buy rating on the company. The average 1 year price objective among brokerages that have covered the stock in the last year is $30.50.

FOA has been the subject of several recent research reports. Zacks Research lowered Finance of America Companies from a "hold" rating to a "strong sell" rating in a report on Tuesday, August 11th. B. Riley Financial reaffirmed a "buy" rating and set a $32.00 price objective (up from $25.00) on shares of Finance of America Companies in a report on Wednesday, August 5th. Wall Street Zen upgraded shares of Finance of America Companies from a "sell" rating to a "hold" rating in a research report on Saturday. Alliance Global Partners began coverage on shares of Finance of America Companies in a research note on Wednesday, July 22nd. They issued a "buy" rating and a $30.00 target price for the company. Finally, Weiss Ratings lowered shares of Finance of America Companies from a "sell (d+)" rating to a "sell (d)" rating in a research report on Tuesday, August 11th.

Finance of America Companies Price Performance

Shares of NYSE FOA opened at $13.47 on Monday. The stock has a fifty day simple moving average of $18.42 and a two-hundred day simple moving average of $20.05. Finance of America Companies has a 1-year low of $12.15 and a 1-year high of $29.79. The firm has a market cap of $233.25 million, a price-to-earnings ratio of -4.48 and a beta of 1.68. The company has a current ratio of 3.02, a quick ratio of 3.02 and a debt-to-equity ratio of 60.78.

Finance of America Companies (NYSE:FOA - Get Free Report) last released its earnings results on Tuesday, August 4th. The company reported $0.84 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.04 by ($0.20). Finance of America Companies had a positive return on equity of 28.39% and a negative net margin of 0.10%.The firm had revenue of $62.48 million during the quarter, compared to analysts' expectations of $121.94 million. Analysts anticipate that Finance of America Companies will post 3.87 earnings per share for the current year.

Insiders Place Their Bets

In other Finance of America Companies news, CIO Jeremy Prahm sold 6,000 shares of the business's stock in a transaction on Monday, September 21st. The shares were sold at an average price of $13.98, for a total transaction of $83,880.00. Following the sale, the executive owned 161,856 shares of the company's stock, valued at $2,262,746.88. The trade was a 3.57% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 31,500 shares of company stock valued at $598,830. 35.37% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Finance of America Companies

Hedge funds have recently made changes to their positions in the stock. Purpose Unlimited Inc. bought a new position in Finance of America Companies in the 4th quarter worth about $2,325,000. Dimensional Fund Advisors LP lifted its holdings in shares of Finance of America Companies by 56.7% in the first quarter. Dimensional Fund Advisors LP now owns 102,061 shares of the company's stock worth $1,694,000 after buying an additional 36,929 shares in the last quarter. Public Employees Retirement System of Ohio bought a new position in shares of Finance of America Companies in the second quarter valued at approximately $240,000. First Trust Advisors LP boosted its position in shares of Finance of America Companies by 43.7% in the first quarter. First Trust Advisors LP now owns 17,210 shares of the company's stock valued at $286,000 after acquiring an additional 5,236 shares during the period. Finally, Caitong International Asset Management Co. Ltd grew its stake in Finance of America Companies by 160.4% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 3,304 shares of the company's stock valued at $80,000 after acquiring an additional 2,035 shares in the last quarter. 97.20% of the stock is currently owned by hedge funds and other institutional investors.

Finance of America Companies Company Profile

Finance of America Companies, Inc NYSE: FOA is a financial services company focused on helping older homeowners use their home equity as part of a broader retirement strategy. Through its subsidiaries, the company provides reverse mortgage products and related solutions designed to help homeowners access cash, supplement retirement income, manage expenses or remain in their homes.

The company's reverse mortgage business, Finance of America Reverse, offers federally insured Home Equity Conversion Mortgages as well as proprietary reverse mortgage products, including HomeSafe.

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