Medallion Financial (NASDAQ:MFIN) Issues Earnings Results, Beats Estimates By $0.04 EPS

Key Points

• Medallion Financial reported quarterly EPS of $0.31, beating analyst expectations of $0.27 by $0.04. The company posted a 7.73% return on equity and a 10.35% net margin.
• Shares traded near $9.93, with a market capitalization of approximately $229.5 million and a price-to-earnings ratio of 6.71. The stock’s 52-week range is $7.85 to $11.00.
• Analyst sentiment remains cautious, with one Buy rating and four Holds; the consensus rating is Hold and the average price target is $11.25. Institutional investors own about 40.56% of the company.

Medallion Financial (NASDAQ:MFIN - Get Free Report) posted its quarterly earnings results on Wednesday. The credit services provider reported $0.31 earnings per share for the quarter, topping the consensus estimate of $0.27 by $0.04, Zacks reports. Medallion Financial had a return on equity of 7.73% and a net margin of 10.35%.

Medallion Financial Price Performance

Shares of NASDAQ MFIN traded up $0.01 during midday trading on Wednesday, reaching $9.93. 31,051 shares of the stock traded hands, compared to its average volume of 64,892. The company's 50 day moving average is $9.81 and its 200 day moving average is $9.67. Medallion Financial has a one year low of $7.85 and a one year high of $11.00. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.21 and a quick ratio of 1.20. The stock has a market capitalization of $229.48 million, a PE ratio of 6.71 and a beta of 0.78.

Institutional Investors Weigh In On Medallion Financial

A number of hedge funds have recently bought and sold shares of the business. Empowered Funds LLC lifted its position in Medallion Financial by 9.7% during the first quarter. Empowered Funds LLC now owns 27,842 shares of the credit services provider's stock valued at $243,000 after purchasing an additional 2,461 shares during the last quarter. Rhumbline Advisers increased its holdings in shares of Medallion Financial by 6.7% in the 2nd quarter. Rhumbline Advisers now owns 29,712 shares of the credit services provider's stock worth $283,000 after buying an additional 1,871 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its holdings in shares of Medallion Financial by 14.0% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 118,321 shares of the credit services provider's stock worth $1,128,000 after buying an additional 14,557 shares during the last quarter. Raymond James Financial Inc. raised its position in shares of Medallion Financial by 87.9% during the 2nd quarter. Raymond James Financial Inc. now owns 30,110 shares of the credit services provider's stock valued at $287,000 after buying an additional 14,085 shares in the last quarter. Finally, Jane Street Group LLC purchased a new stake in shares of Medallion Financial during the 2nd quarter valued at about $240,000. Hedge funds and other institutional investors own 40.56% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the stock. Weiss Ratings raised shares of Medallion Financial from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, July 2nd. Piper Sandler initiated coverage on shares of Medallion Financial in a report on Friday, June 12th. They issued a "neutral" rating and a $10.50 price target on the stock. Zacks Research raised shares of Medallion Financial from a "strong sell" rating to a "hold" rating in a report on Tuesday, June 30th. Finally, Raymond James Financial initiated coverage on Medallion Financial in a research report on Thursday, July 9th. They set a "market perform" rating for the company. One investment analyst has rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $11.25.

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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