Medallion Financial Corp. (NASDAQ:MFIN) Receives Consensus Rating of "Hold" from Brokerages

Key Points

• Medallion Financial received a consensus "Hold" rating from five brokerages, with four holds and one buy; the average 1-year analyst target price is $11.25.
• The company reported mixed recent results, with Q1 EPS of $0.20 missing estimates of $0.25, while revenue came in at $79.07 million, above expectations.
• Medallion Financial also raised its quarterly dividend to $0.14 per share, giving it an annualized yield of about 5.7%.

Medallion Financial Corp. (NASDAQ:MFIN - Get Free Report) has received a consensus rating of "Hold" from the five brokerages that are presently covering the company, Marketbeat Ratings reports. Four investment analysts have rated the stock with a hold recommendation and one has given a buy recommendation to the company. The average 1-year target price among analysts that have updated their coverage on the stock in the last year is $11.25.

Several research analysts have weighed in on the stock. Weiss Ratings upgraded shares of Medallion Financial from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, July 2nd. Raymond James Financial assumed coverage on shares of Medallion Financial in a research report on Thursday. They set a "market perform" rating for the company. Piper Sandler began coverage on shares of Medallion Financial in a report on Friday, June 12th. They issued a "neutral" rating and a $10.50 target price on the stock. Finally, Zacks Research raised shares of Medallion Financial from a "strong sell" rating to a "hold" rating in a research report on Tuesday, June 30th.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. De Lisle Partners LLP raised its position in Medallion Financial by 40.4% in the 4th quarter. De Lisle Partners LLP now owns 180,079 shares of the credit services provider's stock valued at $1,851,000 after buying an additional 51,822 shares during the last quarter. State Street Corp boosted its holdings in Medallion Financial by 1.0% during the 4th quarter. State Street Corp now owns 243,509 shares of the credit services provider's stock worth $2,506,000 after acquiring an additional 2,462 shares during the last quarter. Bridgeway Capital Management LLC boosted its holdings in Medallion Financial by 1.9% during the 2nd quarter. Bridgeway Capital Management LLC now owns 141,637 shares of the credit services provider's stock worth $1,350,000 after acquiring an additional 2,692 shares during the last quarter. Mariner LLC bought a new stake in shares of Medallion Financial in the 4th quarter worth $739,000. Finally, Empowered Funds LLC grew its stake in shares of Medallion Financial by 11.7% in the 4th quarter. Empowered Funds LLC now owns 51,180 shares of the credit services provider's stock worth $527,000 after acquiring an additional 5,374 shares in the last quarter. Hedge funds and other institutional investors own 40.56% of the company's stock.

Medallion Financial Stock Down 1.1%

Shares of NASDAQ:MFIN opened at $9.83 on Thursday. The company has a debt-to-equity ratio of 0.42, a quick ratio of 1.20 and a current ratio of 1.21. Medallion Financial has a 52-week low of $7.85 and a 52-week high of $11.00. The business's 50 day simple moving average is $9.68 and its two-hundred day simple moving average is $9.73. The firm has a market cap of $227.17 million, a P/E ratio of 6.64 and a beta of 0.78.

Medallion Financial (NASDAQ:MFIN - Get Free Report) last issued its earnings results on Wednesday, April 29th. The credit services provider reported $0.20 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.25 by ($0.05). Medallion Financial had a return on equity of 7.73% and a net margin of 10.35%.The firm had revenue of $79.07 million during the quarter, compared to the consensus estimate of $56.15 million. As a group, research analysts forecast that Medallion Financial will post 1.13 EPS for the current fiscal year.

Medallion Financial Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, May 21st. Stockholders of record on Monday, May 11th were paid a $0.14 dividend. This represents a $0.56 annualized dividend and a dividend yield of 5.7%. This is a boost from Medallion Financial's previous quarterly dividend of $0.12. The ex-dividend date of this dividend was Monday, May 11th. Medallion Financial's dividend payout ratio (DPR) is currently 37.84%.

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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