Medallion Financial (NASDAQ:MFIN) Cut to “Strong Sell” at Zacks Research

Zacks Research cut shares of Medallion Financial (NASDAQ:MFIN) from a hold rating to a strong sell rating in a report published on Thursday morning,Zacks.com reports.

Several other brokerages have also commented on MFIN. Wall Street Zen lowered Medallion Financial from a “buy” rating to a “hold” rating in a report on Saturday, November 8th. Weiss Ratings reissued a “hold (c)” rating on shares of Medallion Financial in a research note on Thursday, January 22nd. One research analyst has rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Medallion Financial currently has a consensus rating of “Hold” and a consensus target price of $12.00.

Medallion Financial Trading Down 0.2%

Shares of MFIN stock opened at $10.39 on Thursday. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.18 and a current ratio of 1.21. Medallion Financial has a 52-week low of $7.71 and a 52-week high of $11.00. The company has a market capitalization of $241.88 million, a PE ratio of 5.84 and a beta of 0.77. The business’s fifty day moving average is $10.31 and its 200 day moving average is $10.20.

Medallion Financial (NASDAQ:MFIN) last posted its earnings results on Wednesday, February 18th. The credit services provider reported $0.50 EPS for the quarter, topping the consensus estimate of $0.41 by $0.09. The business had revenue of $55.92 million during the quarter, compared to analysts’ expectations of $56.20 million. Medallion Financial had a return on equity of 9.45% and a net margin of 12.18%. On average, equities research analysts anticipate that Medallion Financial will post 1.46 EPS for the current fiscal year.

Medallion Financial Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Thursday, March 19th will be given a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a yield of 4.6%. The ex-dividend date is Thursday, March 19th. Medallion Financial’s dividend payout ratio (DPR) is presently 26.97%.

Institutional Investors Weigh In On Medallion Financial

A number of hedge funds have recently made changes to their positions in the business. Uniplan Investment Counsel Inc. grew its holdings in shares of Medallion Financial by 34.5% in the fourth quarter. Uniplan Investment Counsel Inc. now owns 340,123 shares of the credit services provider’s stock worth $3,500,000 after purchasing an additional 87,321 shares during the last quarter. Mariner LLC bought a new stake in Medallion Financial during the 4th quarter valued at $739,000. Teton Advisors LLC purchased a new stake in Medallion Financial during the 3rd quarter valued at $606,000. Goldman Sachs Group Inc. grew its holdings in Medallion Financial by 83.5% in the 4th quarter. Goldman Sachs Group Inc. now owns 129,949 shares of the credit services provider’s stock worth $1,337,000 after acquiring an additional 59,130 shares during the last quarter. Finally, De Lisle Partners LLP grew its holdings in Medallion Financial by 40.4% in the 4th quarter. De Lisle Partners LLP now owns 180,079 shares of the credit services provider’s stock worth $1,851,000 after acquiring an additional 51,822 shares during the last quarter. 40.56% of the stock is currently owned by institutional investors.

Medallion Financial News Roundup

Here are the key news stories impacting Medallion Financial this week:

• Positive Sentiment: Q4 earnings beat — Medallion reported $0.50 EPS versus the consensus $0.41, showing stronger profitability and supporting valuation metrics. MFIN Tops Q4 Earnings (Zacks)
• Positive Sentiment: Dividend support — the company declared a $0.12 quarterly dividend (annualized yield ~4.6%), which can attract income-oriented investors and provide a floor under the share price.
• Neutral Sentiment: Growth targets and strategy — management outlined a mid‑teens loan growth target for 2026 and plans to expand the home‑improvement lending segment; this increases upside if execution succeeds but carries execution risk amid a leadership transition. Loan Growth Target & Strategy (Seeking Alpha)
• Neutral Sentiment: Revenue slightly missed consensus — Q4 revenue was $55.92M vs. consensus ~$56.2M, signaling solid but not standout top‑line performance alongside the EPS beat. Q4 Results (Business Insider)
• Negative Sentiment: Analyst cuts to 2026 estimates — Northland Securities reduced quarterly and full‑year EPS forecasts (FY2026 cut to $1.25 from $1.48), lowering near‑term expectations and likely pressuring the stock.
• Negative Sentiment: Leadership transition — while tied to growth plans, management turnover adds execution and governance uncertainty that can increase short‑term volatility for MFIN.

About Medallion Financial

Medallion Financial Corporation is a specialty finance company that provides asset-based lending solutions to small and mid-sized businesses in the United States. The company’s core business activities include secured loans collateralized by business assets such as insurance premiums, commercial real estate, maritime assets and portfolio receivables. Through its insurance premium finance division, Medallion offers short-term loans that allow policyholders to spread insurance costs over multiple payments, while its portfolio financing arm provides funding against a borrower’s existing asset portfolios.

Founded in 1998 and headquartered in Minneapolis, Minnesota, Medallion Financial originally established itself in the taxi medallion lending market, extending loans secured by New York City cab medallions.