Zacks Research Downgrades Medallion Financial (NASDAQ:MFIN) to Strong Sell

Medallion Financial (NASDAQ:MFIN) was downgraded by stock analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report released on Thursday,Zacks.com reports.

A number of other research firms also recently weighed in on MFIN. Wall Street Zen downgraded Medallion Financial from a “buy” rating to a “hold” rating in a research report on Saturday, November 8th. Weiss Ratings reissued a “hold (c)” rating on shares of Medallion Financial in a report on Thursday, January 22nd. One research analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Medallion Financial presently has a consensus rating of “Hold” and an average target price of $12.00.

Medallion Financial Trading Down 0.2%

Shares of Medallion Financial stock opened at $10.39 on Thursday. Medallion Financial has a 1 year low of $7.71 and a 1 year high of $11.00. The company’s fifty day simple moving average is $10.31 and its 200-day simple moving average is $10.20. The company has a market cap of $241.88 million, a price-to-earnings ratio of 5.84 and a beta of 0.77. The company has a current ratio of 1.21, a quick ratio of 1.18 and a debt-to-equity ratio of 0.43.

Medallion Financial (NASDAQ:MFIN) last issued its quarterly earnings results on Wednesday, February 18th. The credit services provider reported $0.50 earnings per share for the quarter, beating analysts’ consensus estimates of $0.41 by $0.09. The firm had revenue of $55.92 million during the quarter, compared to the consensus estimate of $56.20 million. Medallion Financial had a net margin of 12.18% and a return on equity of 9.45%. As a group, sell-side analysts expect that Medallion Financial will post 1.46 EPS for the current year.

Hedge Funds Weigh In On Medallion Financial

Several hedge funds and other institutional investors have recently modified their holdings of MFIN. BNP Paribas Financial Markets boosted its stake in Medallion Financial by 45.0% in the 3rd quarter. BNP Paribas Financial Markets now owns 3,708 shares of the credit services provider’s stock valued at $37,000 after buying an additional 1,150 shares in the last quarter. Kestra Advisory Services LLC bought a new position in shares of Medallion Financial during the fourth quarter valued at $42,000. Daytona Street Capital LLC acquired a new stake in shares of Medallion Financial in the 4th quarter valued at $51,000. Tower Research Capital LLC TRC grew its holdings 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 worth $60,000 after purchasing an additional 5,288 shares during the last quarter. Finally, Osaic Holdings Inc. acquired a new stake in shares of Medallion Financial during the 2nd quarter worth about $76,000. Institutional investors own 40.56% of the company’s stock.

Trending Headlines about Medallion Financial

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

• Positive Sentiment: Q4 earnings beat — Medallion reported $0.50 EPS versus the consensus $0.41, showing stronger profitability and supporting valuation metrics. MFIN Tops Q4 Earnings (Zacks)
• Positive Sentiment: Dividend support — the company declared a $0.12 quarterly dividend (annualized yield ~4.6%), which can attract income-oriented investors and provide a floor under the share price.
• Neutral Sentiment: Growth targets and strategy — management outlined a mid‑teens loan growth target for 2026 and plans to expand the home‑improvement lending segment; this increases upside if execution succeeds but carries execution risk amid a leadership transition. Loan Growth Target & Strategy (Seeking Alpha)
• Neutral Sentiment: Revenue slightly missed consensus — Q4 revenue was $55.92M vs. consensus ~$56.2M, signaling solid but not standout top‑line performance alongside the EPS beat. Q4 Results (Business Insider)
• Negative Sentiment: Analyst cuts to 2026 estimates — Northland Securities reduced quarterly and full‑year EPS forecasts (FY2026 cut to $1.25 from $1.48), lowering near‑term expectations and likely pressuring the stock.
• Negative Sentiment: Leadership transition — while tied to growth plans, management turnover adds execution and governance uncertainty that can increase short‑term volatility for MFIN.

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.