LM Funding America, Inc. (NASDAQ:LMFA) Sees Significant Increase in Short Interest

LM Funding America, Inc. (NASDAQ:LMFA) was the target of a significant increase in short interest in the month of June. As of June 30th, there was short interest totaling 1,161,168 shares, an increase of 202.6% from the June 15th total of 383,718 shares. Currently, 7.9% of the shares of the stock are short sold. Based on an average daily volume of 7,863,216 shares, the days-to-cover ratio is currently 0.1 days.

Analyst Ratings Changes

Separately, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of LM Funding America in a report on Wednesday, June 24th. One equities research analyst has rated the stock with a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $125.00.

Insider Activity

In other news, CFO Richard D. Russell acquired 5,264 shares of LM Funding America stock in a transaction dated Tuesday, May 19th. The stock was purchased at an average cost of $5.50 per share, with a total value of $28,952.00. Following the completion of the purchase, the chief financial officer directly owned 9,765 shares in the company, valued at approximately $53,707.50. This trade represents a 116.95% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 15.03% of the stock is currently owned by company insiders.

Institutional Trading of LM Funding America

Several hedge funds have recently bought and sold shares of the stock. Armistice Capital LLC grew its position in shares of LM Funding America by 40.5% during the fourth quarter. Armistice Capital LLC now owns 527,611 shares of the financial services provider’s stock valued at $234,000 after purchasing an additional 152,171 shares in the last quarter. Jane Street Group LLC increased its holdings in shares of LM Funding America by 782.6% in the fourth quarter. Jane Street Group LLC now owns 124,390 shares of the financial services provider’s stock worth $55,000 after purchasing an additional 110,297 shares during the last quarter. Citadel Advisors LLC purchased a new stake in shares of LM Funding America in the third quarter worth about $139,000. Two Sigma Investments LP purchased a new stake in shares of LM Funding America in the third quarter worth about $100,000. Finally, XTX Topco Ltd bought a new position in LM Funding America during the second quarter valued at approximately $54,000. Hedge funds and other institutional investors own 22.73% of the company’s stock.

LM Funding America Price Performance

LMFA stock traded up $0.09 during midday trading on Wednesday, hitting $2.88. The company’s stock had a trading volume of 5,916 shares, compared to its average volume of 43,751. The company has a quick ratio of 1.13, a current ratio of 1.13 and a debt-to-equity ratio of 0.10. LM Funding America has a 12 month low of $2.70 and a 12 month high of $128.50. The company has a 50 day moving average of $5.03 and a two-hundred day moving average of $7.53. The firm has a market capitalization of $1.98 million, a price-to-earnings ratio of -0.05 and a beta of 2.40.

LM Funding America (NASDAQ:LMFA) last released its quarterly earnings data on Friday, May 15th. The financial services provider reported ($11.75) earnings per share (EPS) for the quarter, missing the consensus estimate of ($7.75) by ($4.00). LM Funding America had a negative net margin of 368.68% and a negative return on equity of 102.63%. The company had revenue of $2.11 million for the quarter, compared to the consensus estimate of $3.00 million.

LM Funding America Company Profile

LM Funding America, Inc, headquartered in Miami, Florida, is a specialty finance company that provides retail installment contracts to subprime borrowers. The company originates, acquires, and manages motor vehicle retail financing through a network of franchised and independent automobile dealerships across the United States. LM Funding America holds and services its loan portfolio through its wholly owned subsidiary, LM Funding America Service Corp., and offers floorplan financing to new and used vehicle dealers through LM Funding Floorplan LLC.

Established in 2013, LM Funding America completed its initial public offering on the Nasdaq Stock Market in 2015, enabling the company to expand its lending operations and geographic presence.