Across the recent three months, 5 analysts have shared their insights on Open Lending (NASDAQ:LPRO), expressing a variety of opinions spanning from bullish to bearish.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 2 | 2 | 0 | 0 |
| Last 30D | 0 | 0 | 0 | 0 | 0 |
| 1M Ago | 1 | 0 | 1 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 2 | 1 | 0 | 0 |
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $7.2, a high estimate of $8.00, and a low estimate of $6.00. A 5.51% drop is evident in the current average compared to the previous average price target of $7.62.
Exploring Analyst Ratings: An In-Depth Overview
A clear picture of Open Lending's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Joseph Vafi | Canaccord Genuity | Lowers | Hold | $6.00 | $7.00 |
| Mayank Tandon | Needham | Lowers | Buy | $7.00 | $8.00 |
| John Davis | Raymond James | Maintains | Outperform | $8.00 | $8.00 |
| David Scharf | JMP Securities | Maintains | Market Outperform | $8.00 | - |
| Joseph Vafi | Canaccord Genuity | Lowers | Hold | $7.00 | $7.50 |
Key Insights:
- Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Open Lending. This insight gives a snapshot of analysts' perspectives on the current state of the company.
- Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Open Lending compared to the broader market.
- Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Open Lending's stock. This examination reveals shifts in analysts' expectations over time.
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Open Lending's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
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Discovering Open Lending: A Closer Look
Open Lending Corp is engaged in providing automated lending services to financial institutions. The company offers loan analytics, risk-based pricing, risk modeling, and automated decision technology. Its Lenders Protection Program ("LPP") enables automotive lenders to make loans that are largely insured against losses from defaults.
Open Lending's Financial Performance
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
Revenue Challenges: Open Lending's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -19.85%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.
Net Margin: Open Lending's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 16.55%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Open Lending's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 2.44%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 1.35%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: With a high debt-to-equity ratio of 0.69, Open Lending faces challenges in effectively managing its debt levels, indicating potential financial strain.
The Core of Analyst Ratings: What Every Investor Should Know
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
This article was generated by Benzinga's automated content engine and reviewed by an editor.