LendingTree (NASDAQ:TREE) Shares Down 8.3% - Time to Sell?

Key Points

• Shares tumbled 8.3% intraday to about $42.15 on Friday, with roughly 150,537 shares traded—about 67% below the stock's average daily volume.
• LendingTree reported an EPS of ($0.39) vs. consensus $0.90 (a $1.29 miss) while revenue rose 22.3% to $310.9M and analysts project ~0.48 EPS for the fiscal year.
• Several firms cut price targets (e.g., Keefe Bruyette & Woods $83→$70; Needham $85→$60) and ratings cooled; the consensus is a Moderate Buy with an average price target of $74.00.

LendingTree, Inc. (NASDAQ:TREE - Get Free Report) was down 8.3% during mid-day trading on Friday . The company traded as low as $42.07 and last traded at $42.15. Approximately 150,537 shares changed hands during mid-day trading, a decline of 67% from the average daily volume of 460,329 shares. The stock had previously closed at $45.96.

Analyst Ratings Changes

Several research firms recently issued reports on TREE. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of LendingTree in a research note on Monday, December 29th. Wall Street Zen downgraded LendingTree from a "strong-buy" rating to a "buy" rating in a research note on Monday, November 10th. Keefe, Bruyette & Woods lowered their price target on LendingTree from $83.00 to $70.00 and set an "outperform" rating on the stock in a report on Wednesday. Needham & Company LLC reduced their price objective on shares of LendingTree from $85.00 to $60.00 and set a "buy" rating for the company in a research note on Tuesday. Finally, Zacks Research lowered shares of LendingTree from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, December 30th. Five analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, LendingTree currently has an average rating of "Moderate Buy" and an average price target of $74.00.

LendingTree Price Performance

The firm has a market cap of $567.31 million, a P/E ratio of 3.87 and a beta of 2.21. The stock's 50-day moving average is $50.90 and its 200-day moving average is $57.37. The company has a quick ratio of 1.43, a current ratio of 1.75 and a debt-to-equity ratio of 1.35.

LendingTree (NASDAQ:TREE - Get Free Report) last posted its quarterly earnings results on Monday, March 2nd. The financial services provider reported ($0.39) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.90 by ($1.29). LendingTree had a return on equity of 12.44% and a net margin of 13.55%.The company had revenue of $310.92 million during the quarter, compared to analyst estimates of $286.56 million. The business's revenue for the quarter was up 22.3% on a year-over-year basis. As a group, equities analysts anticipate that LendingTree, Inc. will post 0.48 EPS for the current fiscal year.

Institutional Trading of LendingTree

Institutional investors and hedge funds have recently modified their holdings of the company. Blue Grotto Capital LLC grew its stake in LendingTree by 27.3% during the second quarter. Blue Grotto Capital LLC now owns 382,610 shares of the financial services provider's stock worth $14,183,000 after buying an additional 82,131 shares during the last quarter. Range Financial Group LLC acquired a new position in shares of LendingTree in the 3rd quarter worth approximately $1,408,000. Geode Capital Management LLC boosted its holdings in shares of LendingTree by 7.3% in the 2nd quarter. Geode Capital Management LLC now owns 267,264 shares of the financial services provider's stock worth $9,909,000 after acquiring an additional 18,207 shares in the last quarter. G2 Investment Partners Management LLC grew its position in LendingTree by 69.0% during the 2nd quarter. G2 Investment Partners Management LLC now owns 305,573 shares of the financial services provider's stock worth $11,328,000 after acquiring an additional 124,806 shares during the last quarter. Finally, Dynamic Technology Lab Private Ltd bought a new stake in shares of LendingTree during the second quarter worth $545,000. 68.26% of the stock is currently owned by institutional investors.

About LendingTree

LendingTree, Inc operates an online marketplace that connects consumers with a network of lenders and financial service providers. Through its platform, borrowers can compare loan offers for mortgages, home equity loans, personal loans, student loans, auto loans and small business financing. The company also offers tools for comparing credit cards and deposit accounts, allowing users to research rates and terms from a range of providers in one place.

Founded in 1996 by Doug Lebda, LendingTree pioneered the comparison-shopping model for consumer credit products.

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