LendingTree (NASDAQ:TREE) has been upgraded from a “buy” rating to a “strong-buy” rating by analysts at Wall Street Zen, reflecting growing confidence in the company’s stock. This upgrade, announced on August 25, 2023, follows a series of positive assessments from various financial institutions, indicating a bullish sentiment surrounding the financial services provider.
Analysts at Truist Financial set a price target of $62.00 and issued a “buy” rating on August 4, 2023. Meanwhile, Needham & Company LLC raised its price target for LendingTree from $62.00 to $70.00 on August 1, 2023, also classifying the stock as a “buy.” Additionally, Keefe, Bruyette & Woods upgraded LendingTree from a “moderate buy” rating to a “strong-buy” rating on August 22, 2023. The consensus rating for LendingTree now stands at “Buy,” with an average target price of $65.38, according to MarketBeat.com.
Recent Performance and Financial Highlights
On August 31, 2023, shares of LendingTree opened at $71.82. The company has a market capitalization of $978.19 million and a price-to-earnings ratio of -17.69. LendingTree’s financial metrics indicate a debt-to-equity ratio of 3.26 and both a quick ratio and current ratio of 1.22. Over the past year, the stock has fluctuated between a 52-week low of $33.50 and a high of $74.15.
LendingTree’s recent quarterly earnings report, released on July 31, 2023, revealed an earnings per share (EPS) of $1.13, surpassing analysts’ expectations of $1.09 by $0.04. The reported revenue for the quarter was $250.10 million, exceeding projected revenue of $244.03 million. This performance marks a 19.0% increase in revenue compared to the same quarter last year.
Insider Trading Activities and Institutional Investments
In related news, Director Diego A. Rodriguez sold 1,200 shares of LendingTree stock on August 25, 2023, at an average price of $69.78, totaling $83,736.00. Following this transaction, he retained 8,113 shares, valued at approximately $566,125.14, representing a 12.89% decrease in his position. Similarly, Chief Financial Officer Jason Bengel sold 6,469 shares at an average price of $68.86, amounting to $445,455.34. Bengel now owns 6,517 shares valued at $448,760.62, a reduction of 49.82% from his previous holdings.
In the last quarter, company insiders sold a total of 8,669 shares worth $598,331. Currently, insiders hold 23.10% of the company’s stock.
Several institutional investors have also recently adjusted their stakes in LendingTree. Notably, Northern Trust Corp increased its holding by 6.8% during the fourth quarter, now owning 94,889 shares valued at $3,677,000. Ameriprise Financial Inc. raised its stake by 5.5%, holding 23,400 shares worth $907,000. Meanwhile, Deutsche Bank AG significantly boosted its stake by 280.6%, acquiring 25,242 shares valued at $978,000.
Overall, institutional investors and hedge funds now own approximately 68.26% of LendingTree’s stock, reflecting strong institutional support for the company as it navigates the competitive financial services landscape.
LendingTree, Inc. operates an online consumer platform within the United States, offering services across three segments: Home, Consumer, and Insurance. Its diverse portfolio includes mortgage options, home equity loans, and real estate brokerage services, positioning it well in the evolving financial services market.
