Medallion Financial (NASDAQ:MFIN) Shares Cross Below 200-Day Moving Average on Disappointing Earnings

Shares of Medallion Financial Corp. (NASDAQ:MFIN) crossed below its two hundred day moving average during trading on Friday following a dissappointing earnings announcement. The stock has a two hundred day moving average of $10.28 and traded as low as $10.06. Medallion Financial shares last traded at $10.10, with a volume of 64,841 shares.

The credit services provider reported $0.10 EPS for the quarter, missing the consensus estimate of $0.32 by ($0.22). The company had revenue of $88.89 million during the quarter, compared to analysts’ expectations of $63.54 million. Medallion Financial had a net margin of 7.53% and a return on equity of 5.32%.

Medallion Financial Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, November 19th. Stockholders of record on Monday, November 9th will be paid a $0.14 dividend. The ex-dividend date is Monday, November 9th. This represents a $0.56 dividend on an annualized basis and a dividend yield of 5.5%. Medallion Financial’s dividend payout ratio (DPR) is 42.11%.

Medallion Financial News Summary

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.

Analysts Set New Price Targets

MFIN has been the topic of several recent research reports. UBS Group reissued a “neutral” rating on shares of Medallion Financial in a research report on Friday, October 2nd. LADENBURG THALM/SH SH lowered shares of Medallion Financial from a “buy” rating to a “neutral” rating in a research note on Friday. Weiss Ratings upgraded shares of Medallion Financial from a “hold (c)” rating to a “hold (c+)” rating in a research note on Wednesday, October 14th. Piper Sandler reissued a “neutral” rating and set a $12.00 target price (up from $10.50) on shares of Medallion Financial in a research report on Friday, October 2nd. Finally, Raymond James Financial began coverage on shares of Medallion Financial in a research note on Thursday, July 9th. They issued a “market perform” rating for the company. Five equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Reduce” and a consensus target price of $12.62.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. Soltis Investment Advisors LLC raised its stake in shares of Medallion Financial by 8.5% in the 3rd quarter. Soltis Investment Advisors LLC now owns 49,680 shares of the credit services provider’s stock valued at $591,000 after purchasing an additional 3,913 shares in the last quarter. Squarepoint Ops LLC lifted its position in shares of Medallion Financial by 14.5% during the second quarter. Squarepoint Ops LLC now owns 78,555 shares of the credit services provider’s stock worth $802,000 after purchasing an additional 9,968 shares during the last quarter. Hsbc Holdings PLC grew its stake in Medallion Financial by 11.4% in the second quarter. Hsbc Holdings PLC now owns 26,792 shares of the credit services provider’s stock worth $273,000 after purchasing an additional 2,749 shares in the last quarter. Empowered Funds LLC acquired a new position in Medallion Financial in the second quarter worth about $620,000. Finally, Bank of America Corp DE acquired a new position in Medallion Financial in the second quarter worth about $190,000. 40.56% of the stock is owned by institutional investors and hedge funds.

Medallion Financial Stock Performance

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 stock has a market capitalization of $231.90 million, a P/E ratio of 9.10 and a beta of 0.79. The company has a fifty day moving average of $11.73 and a two-hundred day moving average of $10.28.

About Medallion Financial

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.