Velocity Financial Stock: A Deep Dive Into Analyst Perspectives (4 Ratings)
During the last three months, 4 analysts shared their evaluations of Velocity Financial (NYSE:VEL), revealing diverse outlooks from bullish to bearish.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 2 | 1 | 0 | 0 |
| Last 30D | 1 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 2 | 0 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 0 | 0 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $17.88, along with a high estimate of $18.00 and a low estimate of $17.50. This upward trend is evident, with the current average reflecting a 16.25% increase from the previous average price target of $15.38.
Interpreting Analyst Ratings: A Closer Look
The perception of Velocity Financial by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Arren Cyganovich | Citigroup | Raises | Neutral | $18.00 | $17.00 |
| Sarah Barcomb | BTIG | Raises | Buy | $18.00 | $17.00 |
| Chris McGinnis | JMP Securities | Raises | Market Outperform | $17.50 | $13.50 |
| Donald Fandetti | Wells Fargo | Raises | Overweight | $18.00 | $14.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Velocity Financial. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Velocity Financial compared to the broader market.
- Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Velocity Financial's stock. This comparison reveals trends in analysts' expectations over time.
Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Velocity Financial's market position. Stay informed and make well-informed decisions with our Ratings Table.
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Get to Know Velocity Financial Better
Velocity Financial Inc is a United States-based real estate finance company. The company primarily originates and manages investor loans secured by 1-4 unit residential rental and small commercial properties. The company earns revenue in the form of interest income. It operates in New York, California, Florida, New Jersey, and other states.
Velocity Financial's Economic Impact: An Analysis
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 Growth: Over the 3 months period, Velocity Financial showcased positive performance, achieving a revenue growth rate of 62.16% as of 30 September, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.
Net Margin: Velocity Financial's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 29.89% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Velocity Financial's ROE stands out, surpassing industry averages. With an impressive ROE of 2.91%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Velocity Financial's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.3% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Velocity Financial's debt-to-equity ratio stands notably higher than the industry average, reaching 8.64. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
Analyst Ratings: What Are They?
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
This article was generated by Benzinga's automated content engine and reviewed by an editor.