6 analysts have expressed a variety of opinions on Velocity Financial (NYSE:VEL) over the past quarter, offering a diverse set of opinions from bullish to bearish.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 4 | 1 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 1 | 3 | 1 | 0 | 0 |
| 3M Ago | 0 | 0 | 0 | 0 | 0 |
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $18.42, a high estimate of $20.00, and a low estimate of $17.50. This upward trend is evident, with the current average reflecting a 14.55% increase from the previous average price target of $16.08.
Breaking Down Analyst Ratings: A Detailed Examination
A comprehensive examination of how financial experts perceive Velocity Financial is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| 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: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Velocity Financial. This offers insight into analysts' perspectives on the current state of the company.
- Rating: Providing a comprehensive analysis, analysts offer 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: Gaining insights, analysts provide estimates for the future value of Velocity Financial's stock. This comparison reveals trends in analysts' expectations over time.
Capture valuable insights into Velocity Financial's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic 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 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.
Understanding the Numbers: Velocity Financial's Finances
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
Positive Revenue Trend: Examining Velocity Financial's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 65.74% as of 31 December, 2023, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Financials sector.
Net Margin: Velocity Financial's net margin is impressive, surpassing industry averages. With a net margin of 35.87%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 4.03%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): Velocity Financial's ROA stands out, surpassing industry averages. With an impressive ROA of 0.4%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: Velocity Financial's debt-to-equity ratio surpasses industry norms, standing at 8.86. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
Analyst Ratings: Simplified
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
This article was generated by Benzinga's automated content engine and reviewed by an editor.