Securitize (NYSE:SECZ) Shares Gap Up Following Analyst Upgrade

Key Points

• Securitize shares jumped: The stock opened at $8.89, up from its prior close of $6.97, after Needham raised its price target to $13 and maintained a Buy rating.
• Analyst sentiment is mostly positive: SECZ has a “Moderate Buy” consensus rating and an average price target of $14.53, though ratings range from Buy to Sell.
• Quarterly results were mixed: Q3 revenue of $18.61 million beat estimates, but the company’s $0.41-per-share loss was larger than expected. Securitize also announced a $50 million share-repurchase program and a planned acquisition of River One.

Securitize Holdings (NYSE:SECZ - Get Free Report)'s share price gapped up prior to trading on Tuesday after Needham & Company LLC raised their price target on the stock from $11.00 to $13.00. The stock had previously closed at $6.97, but opened at $8.89. Needham & Company LLC currently has a buy rating on the stock. Securitize shares last traded at $9.6570, with a volume of 4,608,358 shares changing hands.

A number of other equities research analysts also recently issued reports on SECZ. Citigroup raised Securitize from a "neutral" rating to a "buy" rating and set a $14.00 price target for the company in a research report on Tuesday. Citizens Jmp raised their price objective on Securitize from $15.00 to $17.00 and gave the stock a "market outperform" rating in a report on Friday, October 9th. Rosenblatt Securities reduced their price objective on Securitize from $13.00 to $12.00 and set a "buy" rating on the stock in a research note on Tuesday. Wall Street Zen cut Securitize to a "strong sell" rating in a report on Saturday, September 5th. Finally, Weiss Ratings began coverage on shares of Securitize in a research report on Friday, September 25th. They set a "sell (d-)" rating for the company. Six research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $14.53.

Key Stories Impacting Securitize

Here are the key news stories impacting Securitize this week:

• Positive Sentiment: Citigroup upgraded SECZ from Neutral to Buy with a $14 price target, and Needham raised its target from $11 to $13 while maintaining a Buy rating. Rosenblatt lowered its target from $13 to $12 but kept its Buy rating. Citigroup rating Needham rating Rosenblatt rating
• Positive Sentiment: Securitize agreed to acquire River One, adding institutional asset-backed lending and warehouse-financing capabilities to its tokenization platform. The deal aims to connect stablecoin capital with traditional lending, opening a path into a market the company describes as worth $6 trillion; terms were not disclosed. River One acquisition announcement
• Positive Sentiment: The company also announced a $50 million share-repurchase program, which could provide support for the stock. Q3 results and repurchase announcement
• Positive Sentiment: Q3 revenue was $18.61 million, above the $17.6 million consensus estimate and the company’s second-highest quarterly total. Q3 revenue report
• Negative Sentiment: SECZ reported a Q3 loss of $0.41 per share, wider than the $0.22 loss analysts expected. The earnings miss may weigh on sentiment despite the revenue beat and growth initiatives. Q3 earnings report

Institutional Investors Weigh In On Securitize

Several institutional investors and hedge funds have recently made changes to their positions in SECZ. Brighton Jones LLC bought a new position in shares of Securitize during the third quarter valued at approximately $146,000. Harbour Investments Inc. acquired a new position in Securitize during the 3rd quarter valued at approximately $201,000. Western Wealth Management LLC bought a new position in Securitize during the 3rd quarter worth $210,000. Money Concepts Capital Corp bought a new position in Securitize during the 3rd quarter worth $245,000. Finally, J. Derek Lewis & Associates Inc. bought a new position in Securitize during the 3rd quarter worth $439,000.

Securitize Price Performance

The business has a 50-day simple moving average of $10.04. The company has a market capitalization of $1.59 billion, a PE ratio of -3.95 and a beta of 0.61.

Securitize (NYSE:SECZ - Get Free Report) last posted its earnings results on Monday, November 9th. The company reported ($0.41) EPS for the quarter. The company had revenue of $18.61 million during the quarter. On average, analysts anticipate that Securitize Holdings will post -0.81 EPS for the current fiscal year.

Securitize Company Profile

Securitize provides technology and regulated financial services for issuing and managing digital securities on blockchain networks. Its platform supports the tokenization of assets such as private fund interests and other securities, along with investor onboarding, compliance, recordkeeping and related lifecycle services.

The company also offers infrastructure for secondary trading of digital securities through regulated entities, including broker-dealer and alternative trading system services.

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