Finance of America Companies (NYSE:FOA) Cut to Sell at Wall Street Zen

Key Points

• Wall Street Zen downgraded Finance of America Companies from "hold" to "sell," and Weiss Ratings also reaffirmed a "sell (d)"; the consensus rating on MarketBeat is "Reduce" with an average price target of $29.50.
• Shares opened at $16.34 (near a 12‑month low of $16.09) with a market cap of about $140 million and a P/E of 8.38, while the 50‑day and 200‑day moving averages ($20.30 and $22.17) sit well above the current price.
• FOA reported quarterly EPS of $0.69 ( beating estimates of $0.65) but missed revenue expectations ($73.51M vs. $109.45M), and insiders have sold roughly 3.2 million shares valued at about $32.1 million over the past 90 days.

Finance of America Companies (NYSE:FOA - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "hold" rating to a "sell" rating in a note issued to investors on Sunday.

Separately, Weiss Ratings restated a "sell (d)" rating on shares of Finance of America Companies in a research report on Monday, December 29th. One investment analyst has rated the stock with a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Reduce" and an average price target of $29.50.

Finance of America Companies Trading Down 2.1%

Shares of NYSE:FOA opened at $16.34 on Friday. The firm has a fifty day moving average of $20.30 and a two-hundred day moving average of $22.17. The company has a quick ratio of 2.67, a current ratio of 2.67 and a debt-to-equity ratio of 47.80. The firm has a market capitalization of $139.72 million, a P/E ratio of 8.38 and a beta of 1.65. Finance of America Companies has a 12-month low of $16.09 and a 12-month high of $29.58.

Finance of America Companies (NYSE:FOA - Get Free Report) last announced its earnings results on Tuesday, March 10th. The company reported $0.69 earnings per share for the quarter, beating analysts' consensus estimates of $0.65 by $0.04. The company had revenue of $73.51 million during the quarter, compared to analyst estimates of $109.45 million. Finance of America Companies had a return on equity of 10.30% and a net margin of 9.09%. On average, equities analysts expect that Finance of America Companies will post 0.75 EPS for the current fiscal year.

Insider Buying and Selling at Finance of America Companies

In other Finance of America Companies news, CIO Jeremy Prahm sold 6,000 shares of the firm's stock in a transaction that occurred on Monday, March 23rd. The shares were sold at an average price of $17.50, for a total value of $105,000.00. Following the transaction, the executive directly owned 167,294 shares of the company's stock, valued at approximately $2,927,645. This trade represents a 3.46% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Tai A. Thornock sold 1,100 shares of Finance of America Companies stock in a transaction on Friday, January 16th. The stock was sold at an average price of $24.58, for a total transaction of $27,038.00. Following the sale, the chief accounting officer directly owned 10,650 shares of the company's stock, valued at $261,777. This represents a 9.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 3,200,134 shares of company stock valued at $32,073,013. 25.00% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Finance of America Companies

A number of institutional investors have recently made changes to their positions in FOA. Russell Investments Group Ltd. bought a new stake in Finance of America Companies in the third quarter valued at about $29,000. Caitong International Asset Management Co. Ltd boosted its holdings in Finance of America Companies by 183.9% during the third quarter. Caitong International Asset Management Co. Ltd now owns 1,269 shares of the company's stock worth $28,000 after buying an additional 822 shares during the last quarter. Purpose Unlimited Inc. acquired a new position in shares of Finance of America Companies during the 4th quarter worth about $2,325,000. Beach Point Capital Management LP increased its stake in shares of Finance of America Companies by 557.5% in the 4th quarter. Beach Point Capital Management LP now owns 789,399 shares of the company's stock valued at $19,111,000 after acquiring an additional 669,336 shares during the last quarter. Finally, Tudor Investment Corp ET AL bought a new stake in shares of Finance of America Companies in the 3rd quarter valued at about $553,000. 97.20% of the stock is owned by institutional investors and hedge funds.

Finance of America Companies Company Profile

Finance of America Companies NYSE: FOA is a diversified nonbank financial services firm specializing in mortgage and insurance products for consumers. The company operates across multiple business segments, delivering home financing solutions, retirement products and specialized lending services through a blend of digital and traditional distribution channels.

In its mortgage segment, FOA originates and purchases a range of home loans including purchase, refinance, FHA, VA and USDA loans.

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