LendingTree (NASDAQ:TREE) Stock Crosses Above 200-Day Moving Average - Here's Why

Key Points

• LendingTree stock has surpassed its 200-day moving average, trading at $54.68 after reaching a high of $57.97 during the session.
• Wall Street analysts have mixed ratings for LendingTree, with a consensus of "Moderate Buy" and a price target of $65.38, despite some analysts downgrading it to "hold."
• Recent insider trading showed significant sell-offs, with a director and the CFO both reducing their ownership in the company, reflecting potential concerns about the stock's future.

LendingTree, Inc. (NASDAQ:TREE - Get Free Report) passed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $49.60 and traded as high as $57.97. LendingTree shares last traded at $54.68, with a volume of 342,625 shares changing hands.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on the stock. Zacks Research cut shares of LendingTree from a "strong-buy" rating to a "hold" rating in a research report on Monday, September 29th. Wall Street Zen upgraded shares of LendingTree from a "buy" rating to a "strong-buy" rating in a research report on Saturday, September 13th. Weiss Ratings reiterated a "sell (d-)" rating on shares of LendingTree in a research report on Wednesday, October 8th. Truist Financial set a $62.00 price target on shares of LendingTree and gave the company a "buy" rating in a research report on Monday, August 4th. Finally, Keefe, Bruyette & Woods upgraded shares of LendingTree from a "moderate buy" rating to a "strong-buy" rating in a research report on Friday, August 22nd. Two equities research analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $65.38.

LendingTree Stock Down 3.9%

The firm has a market cap of $744.74 million, a PE ratio of -13.47 and a beta of 1.71. The company has a debt-to-equity ratio of 3.26, a quick ratio of 1.22 and a current ratio of 1.22. The firm's 50-day moving average price is $65.75 and its two-hundred day moving average price is $49.60.

LendingTree (NASDAQ:TREE - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The financial services provider reported $1.13 earnings per share for the quarter, topping the consensus estimate of $1.09 by $0.04. LendingTree had a negative net margin of 5.33% and a positive return on equity of 25.79%. The business had revenue of $250.10 million during the quarter, compared to the consensus estimate of $244.03 million. The company's quarterly revenue was up 19.0% compared to the same quarter last year. As a group, equities research analysts expect that LendingTree, Inc. will post 0.48 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Diego A. Rodriguez sold 1,200 shares of the company's stock in a transaction on Monday, August 25th. The shares were sold at an average price of $69.78, for a total transaction of $83,736.00. Following the transaction, the director directly owned 8,113 shares of the company's stock, valued at $566,125.14. This represents a 12.89% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Jason Bengel sold 6,469 shares of the company's stock in a transaction on Monday, August 25th. The stock was sold at an average price of $68.86, for a total transaction of $445,455.34. Following the transaction, the chief financial officer directly owned 6,517 shares in the company, valued at approximately $448,760.62. This trade represents a 49.82% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 8,669 shares of company stock worth $598,331. 23.40% of the stock is owned by insiders.

Institutional Investors Weigh In On LendingTree

Hedge funds have recently modified their holdings of the stock. Tower Research Capital LLC TRC boosted its position in shares of LendingTree by 281.0% in the second quarter. Tower Research Capital LLC TRC now owns 1,120 shares of the financial services provider's stock worth $42,000 after acquiring an additional 826 shares during the last quarter. Ameritas Investment Partners Inc. boosted its position in shares of LendingTree by 25.2% in the second quarter. Ameritas Investment Partners Inc. now owns 1,141 shares of the financial services provider's stock worth $42,000 after acquiring an additional 230 shares during the last quarter. AlphaQuest LLC boosted its position in shares of LendingTree by 806.4% in the first quarter. AlphaQuest LLC now owns 1,985 shares of the financial services provider's stock worth $100,000 after acquiring an additional 1,766 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. boosted its position in shares of LendingTree by 4,926.7% in the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 2,262 shares of the financial services provider's stock worth $114,000 after acquiring an additional 2,217 shares during the last quarter. Finally, State of Wyoming boosted its position in shares of LendingTree by 51.1% in the first quarter. State of Wyoming now owns 2,712 shares of the financial services provider's stock worth $136,000 after acquiring an additional 917 shares during the last quarter. 68.26% of the stock is owned by institutional investors and hedge funds.

About LendingTree

LendingTree, Inc, through its subsidiary, operates online consumer platform in the United States. It operates through three segments: Home, Consumer, and Insurance. The Home segment offers purchase mortgage, refinance mortgage, and home equity loans and lines of credit; and real estate brokerage services.

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