Medallion Financial (NASDAQ:MFIN) Share Price Passes Above Two Hundred Day Moving Average - Should You Sell?

Key Points

• Medallion Financial Corp. shares recently surpassed their 200-day moving average, reaching a high of $10.06 during trading.
• The company's quarterly earnings exceeded expectations with $0.46 earnings per share, surpassing the consensus estimate of $0.30.
• Institutional investors are actively increasing their stakes in Medallion Financial, with notable increases from Tower Research Capital LLC and MetLife Investment Management LLC.

Medallion Financial Corp. (NASDAQ:MFIN - Get Free Report) shares passed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $9.62 and traded as high as $10.06. Medallion Financial shares last traded at $10.04, with a volume of 56,991 shares traded.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on MFIN shares. LADENBURG THALM/SH SH raised Medallion Financial from a "neutral" rating to a "buy" rating and set a $12.00 target price for the company in a report on Thursday, July 31st. Wall Street Zen lowered Medallion Financial from a "strong-buy" rating to a "buy" rating in a research report on Monday, August 11th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Medallion Financial in a research report on Wednesday, October 8th. One analyst has rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $12.00.

Medallion Financial Price Performance

The stock has a market cap of $233.40 million, a P/E ratio of 5.70 and a beta of 1.38. The company has a current ratio of 1.20, a quick ratio of 1.17 and a debt-to-equity ratio of 0.38. The business has a 50-day simple moving average of $10.32 and a 200 day simple moving average of $9.62.

Medallion Financial (NASDAQ:MFIN - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The credit services provider reported $0.46 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.30 by $0.16. The company had revenue of $53.37 million for the quarter, compared to the consensus estimate of $52.07 million. Medallion Financial had a return on equity of 9.04% and a net margin of 12.62%. On average, analysts forecast that Medallion Financial Corp. will post 1.46 earnings per share for the current year.

Medallion Financial Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 29th. Stockholders of record on Friday, August 15th were paid a $0.12 dividend. This represents a $0.48 dividend on an annualized basis and a dividend yield of 4.8%. The ex-dividend date of this dividend was Friday, August 15th. Medallion Financial's payout ratio is currently 27.27%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Tower Research Capital LLC TRC lifted its stake 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 valued at $60,000 after purchasing an additional 5,288 shares during the period. Osaic Holdings Inc. acquired a new position in Medallion Financial during the 2nd quarter worth approximately $76,000. MetLife Investment Management LLC raised its stake in Medallion Financial by 25.4% during the 1st quarter. MetLife Investment Management LLC now owns 11,311 shares of the credit services provider's stock worth $99,000 after buying an additional 2,293 shares during the period. Baron Wealth Management LLC acquired a new position in Medallion Financial during the 2nd quarter worth approximately $103,000. Finally, Allworth Financial LP acquired a new position in Medallion Financial during the 2nd quarter worth approximately $152,000. 40.56% of the stock is owned by institutional investors and hedge funds.

Medallion Financial Company Profile

Medallion Financial Corp., together with its subsidiaries, operates as a specialty finance company in the United States. It operates in four segments: Recreation Lending, Home Improvement Lending, Commercial Lending, and Taxi Medallion Lending. The company offers loans that finance consumer purchases of recreational vehicles, boats, and other consumer recreational equipment; consumer financing for window, siding, and roof replacement, swimming pool installations, and other home improvement projects; senior and subordinated loans for the purchase of equipment and related assets necessary to open a new business, or purchase or improvement of an existing business; and taxi medallion loans to individuals and small to mid-size businesses.

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