Medallion Financial (NASDAQ:MFIN) Downgraded by LADENBURG THALM/SH SH to Neutral

LADENBURG THALM/SH SH downgraded shares of Medallion Financial (NASDAQ:MFIN) from a buy rating to a neutral rating in a research note issued to investors on Friday morning, MarketBeat reports.

Several other brokerages have also issued reports on MFIN. UBS Group reiterated a “neutral” rating on shares of Medallion Financial in a research note on Friday, October 2nd. Weiss Ratings upgraded Medallion Financial from a “hold (c)” rating to a “hold (c+)” rating in a research report on Wednesday, October 14th. Raymond James Financial initiated coverage on shares of Medallion Financial in a report on Thursday, July 9th. They issued a “market perform” rating for the company. Piper Sandler restated a “neutral” rating and issued a $12.00 target price (up from $10.50) on shares of Medallion Financial in a research report on Friday, October 2nd. Finally, Zacks Research downgraded shares of Medallion Financial from a “strong-buy” rating to a “strong sell” rating in a report on Monday, October 5th. Five investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Reduce” and a consensus target price of $12.62.

Medallion Financial Trading Down 13.5%

Shares of NASDAQ:MFIN opened at $10.10 on Friday. The business’s 50 day simple moving average is $11.73 and its 200 day simple moving average is $10.28. Medallion Financial has a 1 year low of $7.85 and a 1 year high of $12.26. 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 capitalization of $231.90 million, a P/E ratio of 9.10 and a beta of 0.79.

Medallion Financial (NASDAQ:MFIN) last announced its quarterly earnings data on Thursday, October 29th. The credit services provider reported $0.10 earnings per share for the quarter, missing the consensus estimate of $0.32 by ($0.22). Medallion Financial had a net margin of 7.53% and a return on equity of 5.32%. The company had revenue of $88.89 million during the quarter, compared to analyst estimates of $63.54 million. On average, research analysts anticipate that Medallion Financial will post 1.15 EPS for the current fiscal year.

Medallion Financial Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, November 19th. Shareholders of record on Monday, November 9th will be issued 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 dividend payout ratio is presently 42.11%.

Hedge Funds Weigh In On Medallion Financial

A number of hedge funds have recently added to or reduced their stakes in MFIN. BlackRock Inc. purchased a new stake in Medallion Financial in the 2nd quarter valued at $12,450,000. Bank of New York Mellon Corp purchased a new position in Medallion Financial during the second quarter worth about $1,120,000. Tieton Capital Management LLC bought a new position in shares of Medallion Financial during the 2nd quarter worth approximately $10,297,000. Connor Clark & Lunn Investment Management Ltd. bought a new stake in Medallion Financial during the second quarter worth $2,057,000. Finally, Sei Investments Co. boosted its stake in Medallion Financial by 124.0% in the first quarter. Sei Investments Co. now owns 490,972 shares of the credit services provider’s stock valued at $4,203,000 after acquiring an additional 271,789 shares during the last quarter. Institutional investors and hedge funds 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: 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.

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.