Medallion Financial Corp. (NASDAQ:MFIN) Plans $0.14 Quarterly Dividend

Key Points

• Medallion Financial declared a quarterly dividend of $0.14 per share, payable August 31 to shareholders of record on August 17. The dividend implies a 5.6% annualized yield, with an ex-dividend date of August 17.
• The dividend appears well covered, with a current payout ratio of 34.4%; analysts expect next year’s earnings to support an estimated payout ratio of 39.7%.
• The company reported quarterly EPS of $0.31, beating the $0.27 consensus estimate, while revenue of $58.06 million fell slightly short of expectations. MFIN opened at $9.93, and institutional investors own 40.56% of its shares.

Medallion Financial Corp. (NASDAQ:MFIN - Get Free Report) announced a quarterly dividend on Wednesday, July 29th. Stockholders of record on Monday, August 17th will be given a dividend of 0.14 per share by the credit services provider on Monday, August 31st. This represents a c) dividend on an annualized basis and a dividend yield of 5.6%. The ex-dividend date is Monday, August 17th.

Medallion Financial has a payout ratio of 34.4% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Medallion Financial to earn $1.41 per share next year, which means the company should continue to be able to cover its $0.56 annual dividend with an expected future payout ratio of 39.7%.

Medallion Financial Price Performance

MFIN stock opened at $9.93 on Thursday. The stock has a 50-day moving average price of $9.82 and a two-hundred day moving average price of $9.67. The company has a market cap of $229.48 million, a PE ratio of 6.71 and a beta of 0.78. The company has a current ratio of 1.21, a quick ratio of 1.20 and a debt-to-equity ratio of 0.42. Medallion Financial has a 12-month low of $7.85 and a 12-month high of $11.00.

Medallion Financial (NASDAQ:MFIN - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The credit services provider reported $0.31 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.27 by $0.04. The company had revenue of $58.06 million during the quarter, compared to the consensus estimate of $58.98 million. Medallion Financial had a net margin of 10.35% and a return on equity of 7.73%. As a group, research analysts predict that Medallion Financial will post 1.13 EPS for the current year.

Institutional Trading of Medallion Financial

Large investors have recently modified their holdings of the company. Sei Investments Co. lifted its position in Medallion Financial by 124.0% during the 1st quarter. Sei Investments Co. now owns 490,972 shares of the credit services provider's stock worth $4,203,000 after acquiring an additional 271,789 shares during the last quarter. Uniplan Investment Counsel Inc. raised its position in shares of Medallion Financial by 34.5% during the fourth quarter. Uniplan Investment Counsel Inc. now owns 340,123 shares of the credit services provider's stock valued at $3,500,000 after buying an additional 87,321 shares during the last quarter. Mariner LLC bought a new stake in shares of Medallion Financial in the fourth quarter valued at about $739,000. Goldman Sachs Group Inc. lifted its stake in shares of Medallion Financial by 83.5% in the fourth quarter. Goldman Sachs Group Inc. now owns 129,949 shares of the credit services provider's stock valued at $1,337,000 after buying an additional 59,130 shares during the period. Finally, De Lisle Partners LLP grew its position in Medallion Financial by 40.4% during the fourth quarter. De Lisle Partners LLP now owns 180,079 shares of the credit services provider's stock worth $1,851,000 after buying an additional 51,822 shares in the last quarter. 40.56% of the stock is owned by institutional investors.

Medallion Financial Company Profile

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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