Medallion Financial (NASDAQ:MFIN) Stock Price Passes Above 200 Day Moving Average - Should You Sell?

Key Points

• Medallion Financial shares moved above their 200-day moving average, reaching $11.50 and recently trading at $11.43 versus the $9.72 average.
• Analysts maintain a consensus “Hold” rating with a $10.50 target price, below the stock’s recent trading level.
• The company exceeded quarterly earnings and revenue estimates, and declared a quarterly dividend of $0.14 per share, representing a 4.9% annualized yield.

Medallion Financial Corp. (NASDAQ:MFIN - Get Free Report) shares crossed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $9.72 and traded as high as $11.50. Medallion Financial shares last traded at $11.43, with a volume of 81,414 shares.

Analyst Ratings Changes

MFIN has been the subject of several research reports. Zacks Research upgraded Medallion Financial from a "strong sell" rating to a "hold" rating in a report on Tuesday, June 30th. Raymond James Financial started coverage on Medallion Financial in a research report on Thursday, July 9th. They set a "market perform" rating on the stock. Piper Sandler began coverage on Medallion Financial in a research note on Friday, June 12th. They set a "neutral" rating and a $10.50 price target on the stock. Finally, Weiss Ratings upgraded Medallion Financial from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, July 2nd. Four analysts have rated the stock with a Hold rating, Based on data from MarketBeat, Medallion Financial presently has a consensus rating of "Hold" and a consensus target price of $10.50.

Medallion Financial Trading Up 2.1%

The firm has a market capitalization of $262.43 million, a PE ratio of 8.59 and a beta of 0.78. The company has a quick ratio of 1.21, a current ratio of 1.22 and a debt-to-equity ratio of 0.57. The company's 50-day simple moving average is $10.08 and its 200 day simple moving average is $9.72.

Medallion Financial (NASDAQ:MFIN - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The credit services provider reported $0.31 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.29 by $0.02. Medallion Financial had a net margin of 9.25% and a return on equity of 7.11%. The firm had revenue of $84.38 million for the quarter, compared to the consensus estimate of $58.98 million. As a group, sell-side analysts expect that Medallion Financial Corp. will post 1.15 EPS for the current year.

Medallion Financial Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, August 31st. Stockholders of record on Monday, August 17th will be given a dividend of $0.14 per share. The ex-dividend date of this dividend is Monday, August 17th. This represents a $0.56 dividend on an annualized basis and a dividend yield of 4.9%. Medallion Financial's dividend payout ratio is presently 42.11%.

Institutional Trading of Medallion Financial

A number of institutional investors have recently made changes to their positions in MFIN. Sei Investments Co. boosted its holdings in Medallion Financial by 124.0% in the first quarter. Sei Investments Co. now owns 490,972 shares of the credit services provider's stock worth $4,203,000 after acquiring an additional 271,789 shares in the last quarter. De Lisle Partners LLP increased its holdings in shares of Medallion Financial by 40.4% during the fourth quarter. De Lisle Partners LLP now owns 180,079 shares of the credit services provider's stock valued at $1,851,000 after acquiring an additional 51,822 shares in the last quarter. Hsbc Holdings PLC increased its holdings in shares of Medallion Financial by 9.3% during the first quarter. Hsbc Holdings PLC now owns 24,043 shares of the credit services provider's stock valued at $209,000 after acquiring an additional 2,052 shares in the last quarter. Stephens Inc. AR purchased a new position in shares of Medallion Financial in the 1st quarter valued at approximately $96,000. Finally, Ritholtz Wealth Management raised its position in shares of Medallion Financial by 4.4% in the 1st quarter. Ritholtz Wealth Management now owns 96,761 shares of the credit services provider's stock valued at $828,000 after purchasing an additional 4,066 shares during the last quarter. Institutional investors and hedge funds own 40.56% of the company's stock.

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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