LM Funding America (NASDAQ:LMFA) Shares Pass Below 50 Day Moving Average – Time to Sell?

Shares of LM Funding America, Inc. (NASDAQ:LMFA) crossed below its fifty day moving average during trading on Wednesday . The stock has a fifty day moving average of $0.26 and traded as low as $0.2260. LM Funding America shares last traded at $0.2387, with a volume of 324,866 shares trading hands.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings reissued a “sell (e+)” rating on shares of LM Funding America in a report on Friday, March 27th. One investment analyst has rated the stock with a Buy rating and one has given a Sell rating to the company. According to MarketBeat.com, LM Funding America presently has an average rating of “Hold” and a consensus price target of $5.00.

LM Funding America Trading Down 6.3%

The firm has a market cap of $3.81 million, a P/E ratio of -0.10 and a beta of 2.34. The stock has a fifty day simple moving average of $0.25 and a 200 day simple moving average of $0.43. The company has a debt-to-equity ratio of 0.10, a quick ratio of 1.13 and a current ratio of 1.13.

LM Funding America (NASDAQ:LMFA) last posted its earnings results on Friday, May 15th. The financial services provider reported ($0.47) EPS for the quarter, missing analysts’ consensus estimates of ($0.31) by ($0.16). The business had revenue of $2.11 million during the quarter, compared to the consensus estimate of $3.00 million. LM Funding America had a negative return on equity of 102.63% and a negative net margin of 368.68%.

Insider Activity at LM Funding America

In other news, CFO Richard D. Russell purchased 131,600 shares of the company’s stock in a transaction dated Tuesday, May 19th. The shares were purchased at an average cost of $0.22 per share, for a total transaction of $28,952.00. Following the purchase, the chief financial officer directly owned 244,147 shares in the company, valued at approximately $53,712.34. This represents a 116.93% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Insiders own 15.03% of the company’s stock.

Hedge Funds Weigh In On LM Funding America

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Anson Funds Management LP purchased a new position in LM Funding America during the third quarter valued at $1,608,000. Sabby Management LLC purchased a new position in LM Funding America during the third quarter valued at $728,000. Armistice Capital LLC lifted its position in 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 lifted its position in LM Funding America by 782.6% during the fourth quarter. Jane Street Group LLC now owns 124,390 shares of the financial services provider’s stock valued at $55,000 after purchasing an additional 110,297 shares in the last quarter. Finally, Citadel Advisors LLC purchased a new position in LM Funding America during the third quarter valued at $139,000. 22.73% of the stock is currently owned by hedge funds and other institutional investors.

About LM Funding America

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.