Open Lending (NASDAQ:LPRO) Hits New 1-Year Low on Disappointing Earnings

Open Lending Co. (NASDAQ:LPRO) shares reached a new 52-week low during mid-day trading on Wednesday following a weaker than expected earnings announcement. The stock traded as low as $4.89 and last traded at $5.30, with a volume of 727551 shares trading hands. The stock had previously closed at $6.61.

The company reported $0.02 earnings per share for the quarter, missing the consensus estimate of $0.07 by ($0.05). Open Lending had a net margin of 28.73% and a return on equity of 20.33%. The firm had revenue of $26.01 million during the quarter, compared to analyst estimates of $32.87 million. During the same quarter in the previous year, the firm earned $0.19 earnings per share. The business’s revenue for the quarter was down 48.7% compared to the same quarter last year.

Analyst Ratings Changes

Several equities analysts have recently commented on the stock. Canaccord Genuity Group lowered shares of Open Lending from a “buy” rating to a “hold” rating and decreased their price objective for the stock from $20.00 to $5.50 in a report on Wednesday. Morgan Stanley decreased their price objective on shares of Open Lending from $6.00 to $4.00 and set an “underweight” rating on the stock in a report on Wednesday. Raymond James decreased their price objective on shares of Open Lending from $12.00 to $8.00 and set an “outperform” rating on the stock in a report on Wednesday. JMP Securities cut their target price on shares of Open Lending from $11.00 to $10.00 and set a “market outperform” rating on the stock in a research note on Monday, October 16th. Finally, Canaccord Genuity Group reaffirmed a “hold” rating and set a $5.50 target price (down from $20.00) on shares of Open Lending in a research note on Wednesday. One research analyst has rated the stock with a sell rating, five have issued a hold rating and five have issued a buy rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $7.56.

Insider Buying and Selling at Open Lending

In other Open Lending news, Director John Joseph Flynn sold 50,000 shares of the stock in a transaction that occurred on Monday, August 21st. The shares were sold at an average price of $8.37, for a total value of $418,500.00. Following the sale, the director now directly owns 2,429,666 shares of the company’s stock, valued at approximately $20,336,304.42. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. In the last three months, insiders have sold 250,000 shares of company stock valued at $1,952,500. Insiders own 17.10% of the company’s stock.

Institutional Investors Weigh In On Open Lending

A number of large investors have recently modified their holdings of LPRO. Pathstone Family Office LLC purchased a new position in shares of Open Lending in the 3rd quarter valued at $1,202,000. Charles Schwab Investment Management Inc. grew its position in shares of Open Lending by 1.8% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 766,307 shares of the company’s stock valued at $5,609,000 after buying an additional 13,645 shares during the last quarter. Swiss National Bank grew its position in shares of Open Lending by 1.1% in the 3rd quarter. Swiss National Bank now owns 172,450 shares of the company’s stock valued at $1,262,000 after buying an additional 1,800 shares during the last quarter. Oppenheimer Asset Management Inc. grew its position in shares of Open Lending by 12.3% in the 3rd quarter. Oppenheimer Asset Management Inc. now owns 81,564 shares of the company’s stock valued at $597,000 after buying an additional 8,907 shares during the last quarter. Finally, Jump Financial LLC purchased a new position in shares of Open Lending in the 3rd quarter valued at $410,000. 88.87% of the stock is owned by hedge funds and other institutional investors.

Open Lending Price Performance

The stock has a market capitalization of $714.53 million, a PE ratio of 16.91 and a beta of 0.89. The stock’s 50-day moving average is $7.04 and its 200 day moving average is $8.74. The company has a debt-to-equity ratio of 0.65, a quick ratio of 15.83 and a current ratio of 15.83.

About Open Lending

Open Lending Corporation provides lending enablement and risk analytics solutions to credit unions, regional banks, finance companies, and captive finance companies of automakers in the United States. It offers Lenders Protection Program (LPP), which is a cloud-based automotive lending platform that provides loan analytics solutions and automated issuance of credit default insurance with third-party insurance providers.