Medallion Financial (NASDAQ:MFIN) Stock Price Crosses Above Two Hundred Day Moving Average - Time to Sell?

Key Points

• Medallion Financial’s stock rose above its 200-day moving average, trading as high as $10.33 versus a 200-day average of $9.70 and last changing hands at $10.23.
• Wall Street sentiment remains cautious: the stock has a consensus Hold rating with a $11.25 average price target, after multiple firms issued neutral or hold-style ratings.
• The company recently increased its quarterly dividend to $0.14 per share, lifting the annualized yield to about 5.5%, even though its latest earnings missed EPS expectations.

Medallion Financial Corp. (NASDAQ:MFIN - Get Free Report)'s stock price passed above its two hundred day moving average during trading on Thursday . The stock has a two hundred day moving average of $9.70 and traded as high as $10.33. Medallion Financial shares last traded at $10.23, with a volume of 42,273 shares trading hands.

Wall Street Analyst Weigh In

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

Medallion Financial Stock Performance

The firm has a market cap of $236.42 million, a P/E ratio of 6.91 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. The company's 50-day moving average is $9.76 and its two-hundred day moving average is $9.70.

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

Medallion Financial Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, May 21st. Investors of record on Monday, May 11th were given a dividend of $0.14 per share. The ex-dividend date of this dividend was Monday, May 11th. This is a positive change from Medallion Financial's previous quarterly dividend of $0.12. This represents a $0.56 annualized dividend and a dividend yield of 5.5%. Medallion Financial's payout ratio is presently 37.84%.

Institutional Investors Weigh In On Medallion Financial

Institutional investors and hedge funds have recently bought and sold shares of the stock. Sei Investments Co. lifted its stake 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 valued at $4,203,000 after acquiring an additional 271,789 shares in the last quarter. Uniplan Investment Counsel Inc. boosted its holdings in Medallion Financial by 34.5% during the 4th quarter. Uniplan Investment Counsel Inc. now owns 340,123 shares of the credit services provider's stock worth $3,500,000 after acquiring an additional 87,321 shares during the last quarter. Mariner LLC bought a new stake in shares of Medallion Financial in the 4th quarter worth $739,000. Goldman Sachs Group Inc. grew its stake in shares of Medallion Financial by 83.5% in the 4th quarter. Goldman Sachs Group Inc. now owns 129,949 shares of the credit services provider's stock worth $1,337,000 after acquiring an additional 59,130 shares in the last quarter. Finally, De Lisle Partners LLP grew its stake in shares of 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 worth $1,851,000 after acquiring an additional 51,822 shares in the last quarter. 40.56% of the stock is owned by hedge funds and other institutional investors.

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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