Velocity Financial Stock: A Deep Dive Into Analyst Perspectives (7 Ratings)
In the last three months, 7 analysts have published ratings on Velocity Financial (NYSE:VEL), offering a diverse range of perspectives 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 | 5 | 1 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 1 | 0 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 1 | 3 | 1 | 0 | 0 |
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $18.93, a high estimate of $22.00, and a low estimate of $17.50. Witnessing a positive shift, the current average has risen by 13.76% from the previous average price target of $16.64.
Decoding Analyst Ratings: A Detailed Look
An in-depth analysis of recent analyst actions unveils how financial experts perceive Velocity Financial. The following summary 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 |
|---|---|---|---|---|---|
| Stephen Laws | Raymond James | Raises | Outperform | $22.00 | $20.00 |
| Chris McGinnis | JMP Securities | Raises | Market Outperform | $19.00 | $17.50 |
| Stephen Laws | Raymond James | Raises | Outperform | $20.00 | $17.50 |
| 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: 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 Velocity Financial. This insight gives a snapshot of analysts' perspectives on the current state of the company.
- Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Velocity Financial compared to the broader market.
- Price Targets: Delving into movements, analysts provide estimates for the future value of Velocity Financial's stock. This analysis reveals shifts in analysts' expectations over time.
To gain a panoramic view of Velocity Financial's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using 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 originates and manages investor loans secured by 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: Delving into Financials
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
Revenue Growth: Over the 3 months period, Velocity Financial showcased positive performance, achieving a revenue growth rate of 51.12% as of 31 March, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Financials sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: Velocity Financial's net margin excels beyond industry benchmarks, reaching 33.78%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): Velocity Financial's ROE stands out, surpassing industry averages. With an impressive ROE of 3.84%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.38%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: With a below-average debt-to-equity ratio of 8.94, Velocity Financial adopts a prudent financial strategy, indicating a balanced approach to debt management.
How Are Analyst Ratings Determined?
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
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.