BlackRock Inc. Acquires Shares of 1,219,363 Medallion Financial Corp. $MFIN

Key Points

• BlackRock acquired 1,219,363 shares of Medallion Financial in the second quarter, worth approximately $12.45 million and representing a 5.28% stake.
• Medallion Financial reported quarterly EPS of $0.31, beating estimates by $0.02, while revenue of $84.38 million exceeded the $58.98 million consensus forecast.
• The company declared a quarterly dividend of $0.14, equivalent to $0.56 annually and a 4.6% yield. Analysts maintain a consensus “Hold” rating with an average price target of $10.50.

BlackRock Inc. purchased a new stake in Medallion Financial Corp. (NASDAQ:MFIN - Free Report) in the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 1,219,363 shares of the credit services provider's stock, valued at approximately $12,450,000. BlackRock Inc. owned approximately 5.28% of Medallion Financial as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Bank of America Corp DE boosted its holdings in shares of Medallion Financial by 4.4% in the third quarter. Bank of America Corp DE now owns 26,318 shares of the credit services provider's stock valued at $266,000 after acquiring an additional 1,112 shares during the period. BNP Paribas Financial Markets increased its holdings in shares of Medallion Financial by 45.0% in the 3rd quarter. BNP Paribas Financial Markets now owns 3,708 shares of the credit services provider's stock valued at $37,000 after acquiring an additional 1,150 shares during the period. Barclays PLC raised its position in Medallion Financial by 5.1% in the 4th quarter. Barclays PLC now owns 37,672 shares of the credit services provider's stock valued at $388,000 after purchasing an additional 1,834 shares during the last quarter. Rhumbline Advisers raised its position in Medallion Financial by 6.7% in the 2nd quarter. Rhumbline Advisers now owns 29,712 shares of the credit services provider's stock valued at $283,000 after purchasing an additional 1,871 shares during the last quarter. Finally, Hsbc Holdings PLC boosted its stake in Medallion Financial by 9.3% during the 1st quarter. Hsbc Holdings PLC now owns 24,043 shares of the credit services provider's stock worth $209,000 after purchasing an additional 2,052 shares during the period. Hedge funds and other institutional investors own 40.56% of the company's stock.

Medallion Financial Price Performance

Shares of NASDAQ MFIN opened at $12.22 on Friday. The firm has a market capitalization of $280.57 million, a PE ratio of 9.19 and a beta of 0.81. The business's fifty day moving average price is $10.71 and its two-hundred day moving average price is $9.89. Medallion Financial Corp. has a 1-year low of $7.85 and a 1-year high of $12.23. The company has a debt-to-equity ratio of 0.57, a current ratio of 1.22 and a quick ratio of 1.21.

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

Medallion Financial Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, August 31st. Stockholders of record on Monday, August 17th were issued a $0.14 dividend. The ex-dividend date was Monday, August 17th. This represents a $0.56 annualized dividend and a dividend yield of 4.6%. Medallion Financial's dividend payout ratio (DPR) is 42.11%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on the stock. Weiss Ratings raised shares of Medallion Financial from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, July 2nd. Zacks Research upgraded Medallion Financial from a "strong sell" rating to a "hold" rating in a research report on Tuesday, June 30th. Piper Sandler began coverage on Medallion Financial in a research note on Friday, June 12th. They set a "neutral" rating and a $10.50 price objective for the company. Finally, Raymond James Financial started coverage on Medallion Financial in a research note on Thursday, July 9th. They issued a "market perform" rating on the stock. Four investment analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $10.50.

About Medallion Financial

Medallion Financial Corporation is a specialty finance company that provides asset-based lending solutions to small and mid-sized businesses in the United States. The company's core business activities include secured loans collateralized by business assets such as insurance premiums, commercial real estate, maritime assets and portfolio receivables. Through its insurance premium finance division, Medallion offers short-term loans that allow policyholders to spread insurance costs over multiple payments, while its portfolio financing arm provides funding against a borrower's existing asset portfolios.

Founded in 1998 and headquartered in Minneapolis, Minnesota, Medallion Financial originally established itself in the taxi medallion lending market, extending loans secured by New York City cab medallions.

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