Medallion Financial (NASDAQ:MFIN) Shares Cross Below 200-Day Moving Average on Disappointing Earnings

Key Points

• Medallion Financial shares fell below their 200-day moving average, trading as low as $10.06 after disappointing quarterly earnings.
• Quarterly EPS was $0.10, well below the $0.32 analyst consensus, although revenue of $88.89 million exceeded expectations of $63.54 million.
• The company declared a quarterly dividend of $0.14 per share, representing $0.56 annually and an approximately 5.5% yield; analysts maintain a cautious outlook, with a consensus “Reduce” rating and a $12.62 target price.

Medallion Financial Corp. (NASDAQ:MFIN - Get Free Report) passed below its 200-day moving average during trading on Friday after the company announced weaker than expected quarterly earnings. The stock has a 200-day moving average of $10.28 and traded as low as $10.06. Medallion Financial shares last traded at $10.10, with a volume of 64,841 shares traded.

The credit services provider reported $0.10 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.32 by ($0.22). The business had revenue of $88.89 million for the quarter, compared to analysts' expectations of $63.54 million. Medallion Financial had a return on equity of 5.32% and a net margin of 7.53%.

Medallion Financial Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, November 19th. Investors of record on Monday, November 9th will be paid a dividend of $0.14 per share. The ex-dividend date is Monday, November 9th. This represents a $0.56 annualized dividend and a yield of 5.5%. Medallion Financial's payout ratio is presently 42.11%.

Trending Headlines about Medallion Financial

Here are the key news stories impacting Medallion Financial this week:

• Positive Sentiment: Medallion Financial declared a quarterly dividend of $0.14 per share, equivalent to $0.56 annually and a yield of approximately 5.1%. The dividend is payable November 19 to shareholders of record November 9. This income component may provide some support for the stock. Medallion Financial dividend information
• Positive Sentiment: Third-quarter revenue totaled $88.89 million, well above the $63.54 million analyst consensus, indicating stronger-than-expected top-line activity. Medallion Financial third-quarter earnings report
• Neutral Sentiment: Medallion Bank, a wholly owned subsidiary and provider of recreational-vehicle, boat, home-improvement and fintech-partner loans, also reported third-quarter results and declared its Series G preferred-stock dividend. The announcement confirms continued activity at the subsidiary, but the provided report does not include enough financial detail to assess the effect on MFIN. Medallion Bank third-quarter results
• Negative Sentiment: Third-quarter EPS was only $0.10, missing the $0.32 consensus estimate by $0.22 and falling from $0.46 a year earlier. The earnings shortfall raises concerns about profitability and is likely weighing more heavily than the revenue beat. Zacks Medallion Financial earnings report
• Negative Sentiment: Ladenburg Thalmann downgraded MFIN from “Buy” to “Neutral,” removing a bullish analyst signal shortly after the earnings miss and reinforcing near-term investor caution.

Analysts Set New Price Targets

Several equities analysts have commented on MFIN shares. Northland Securities set a $13.25 price target on shares of Medallion Financial in a research note on Wednesday, October 14th. UBS Group restated a "neutral" rating on shares of Medallion Financial in a report on Friday, October 2nd. LADENBURG THALM/SH SH cut shares of Medallion Financial from a "buy" rating to a "neutral" rating in a report on Friday. Raymond James Financial assumed coverage on shares of Medallion Financial in a research report on Thursday, July 9th. They issued a "market perform" rating on the stock. Finally, Weiss Ratings upgraded shares of Medallion Financial from a "hold (c)" rating to a "hold (c+)" rating in a research note on Wednesday, October 14th. Five investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Reduce" and a consensus target price of $12.62.

Institutional Investors Weigh In On Medallion Financial

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Hsbc Holdings PLC boosted its stake 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 worth $209,000 after buying an additional 2,052 shares during the period. Soltis Investment Advisors LLC grew its position in shares of Medallion Financial by 8.5% in the third quarter. Soltis Investment Advisors LLC now owns 49,680 shares of the credit services provider's stock valued at $591,000 after purchasing an additional 3,913 shares during the last quarter. Empowered Funds LLC raised its holdings in Medallion Financial by 10.8% in the 1st quarter. Empowered Funds LLC now owns 56,690 shares of the credit services provider's stock valued at $485,000 after acquiring an additional 5,510 shares during the last quarter. Squarepoint Ops LLC boosted its position in shares of Medallion Financial by 14.5% in the second quarter. Squarepoint Ops LLC now owns 78,555 shares of the credit services provider's stock worth $802,000 after acquiring an additional 9,968 shares during the last quarter. Finally, Vise Technologies Inc. acquired a new stake in shares of Medallion Financial in the second quarter worth $110,000. Hedge funds and other institutional investors own 40.56% of the company's stock.

Medallion Financial Stock Down 13.5%

The firm's 50-day moving average price is $11.73 and its 200-day moving average price is $10.28. The company has a debt-to-equity ratio of 0.57, a current ratio of 1.22 and a quick ratio of 1.21. The company has a market cap of $231.90 million, a price-to-earnings ratio of 9.10 and a beta of 0.79.

Medallion Financial Company Profile

Medallion Financial Corp. is a specialty finance company that originates and services loans for taxi medallion owners and operators. Its lending activities have historically focused on financing the purchase and refinancing of taxi medallions, as well as providing loans secured by related commercial assets.

Through its subsidiaries, including Medallion Bank, the company also participates in consumer and commercial lending. Medallion Bank has offered financing for recreational vehicles, boats, home-improvement projects and other consumer purchases, while the company's broader lending operations serve small businesses and transportation-related borrowers.

Founded in 1995 and headquartered in New York, Medallion Financial has built its business around specialized lending markets that are often served by fewer traditional financial institutions.

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