Medallion Financial (NASDAQ:MFIN) Issues Quarterly Earnings Results, Misses Expectations By $0.05 EPS

Key Points

• Medallion Financial reported $0.20 EPS for the quarter, missing the consensus by $0.05 (expected $0.25); the company posted a return on equity of 9.38% and a net margin of 12.18%.
• The company paid a quarterly dividend of $0.12 per share (annualized $0.48), implying a 5.2% yield with a payout ratio of 26.97%.
• Shares fell about 1.6% to $9.26 on the news; Medallion has a market cap of $217.9M, a P/E of 5.2, and a consensus analyst rating of Hold with a $12 price target.

Medallion Financial (NASDAQ:MFIN - Get Free Report) issued its quarterly earnings results on Wednesday. The credit services provider reported $0.20 earnings per share for the quarter, missing the consensus estimate of $0.25 by ($0.05), Zacks reports. Medallion Financial had a return on equity of 9.38% and a net margin of 12.18%.

Medallion Financial Stock Down 1.6%

NASDAQ:MFIN traded down $0.15 during trading hours on Wednesday, reaching $9.26. 23,258 shares of the company traded hands, compared to its average volume of 53,923. The stock has a market capitalization of $217.89 million, a P/E ratio of 5.20 and a beta of 0.84. The business's 50-day moving average price is $9.30 and its two-hundred day moving average price is $9.83. Medallion Financial has a 1 year low of $7.85 and a 1 year high of $11.00. The company has a current ratio of 1.21, a quick ratio of 1.20 and a debt-to-equity ratio of 0.43.

Medallion Financial Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Thursday, March 19th were paid a dividend of $0.12 per share. The ex-dividend date was Thursday, March 19th. This represents a $0.48 dividend on an annualized basis and a yield of 5.2%. Medallion Financial's payout ratio is presently 26.97%.

Institutional Trading of Medallion Financial

Institutional investors and hedge funds have recently modified their holdings of the business. BNP Paribas Financial Markets increased its holdings in shares of Medallion Financial by 45.0% in the 3rd quarter. BNP Paribas Financial Markets now owns 3,708 shares of the credit services provider's stock worth $37,000 after purchasing an additional 1,150 shares in the last quarter. Kestra Advisory Services LLC bought a new stake in shares of Medallion Financial in the 4th quarter worth $42,000. Tower Research Capital LLC TRC increased its holdings in shares of Medallion Financial by 533.1% in the 2nd quarter. Tower Research Capital LLC TRC now owns 6,280 shares of the credit services provider's stock worth $60,000 after purchasing an additional 5,288 shares in the last quarter. Osaic Holdings Inc. bought a new stake in shares of Medallion Financial in the 2nd quarter worth $76,000. Finally, Vise Technologies Inc. bought a new stake in shares of Medallion Financial in the 4th quarter worth $106,000. Institutional investors own 40.56% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the company. Weiss Ratings cut Medallion Financial from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, April 8th. Zacks Research upgraded Medallion Financial from a "strong sell" rating to a "hold" rating in a research note on Monday, April 20th. One equities research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, Medallion Financial has an average rating of "Hold" and a consensus price target of $12.00.

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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