Shares of OppFi (NYSE: OPFI) received a downgrade from Zacks Research, which lowered its rating from a strong-buy to a hold. This change was reported on the morning of October 30, 2023, reflecting a cautious approach from analysts as market conditions fluctuate. Additionally, Weiss Ratings reaffirmed a “sell (d+)” rating for the company, indicating varying opinions among market analysts.
In total, two research analysts have issued a buy rating for OppFi, while two others have categorized it as a hold, and one has advised a sell. According to MarketBeat, the consensus rating for OppFi remains at “hold,” with an average price target set at $13.63.
Recent Earnings Performance
OppFi’s performance in its most recent quarterly earnings report, released on October 29, 2023, presented a positive outlook. The company reported earnings per share (EPS) of $0.46, surpassing analysts’ expectations of $0.31 by $0.15. This achievement underscores OppFi’s ability to generate profit, with a net margin of 0.68% and a return on equity of 55.59%. The total revenue for the quarter reached $155.09 million, exceeding the estimated $153.42 million.
Looking ahead, OppFi has set guidance for fiscal year 2025 at an EPS range of $1.540 to $1.600. Analysts project that the company will achieve an EPS of $0.86 for the current fiscal year.
Insider Activity and Institutional Investments
Recent insider transactions have raised some eyebrows. Jocelyn Moore, a director at OppFi, sold 4,464 shares on December 11, 2023, at an average price of $10.91, totaling approximately $48,702.24. Following this sale, Moore retains 47,266 shares valued at around $515,672.06, marking an 8.63% decrease in her position.
Additionally, Chief Financial Officer Pamela D. Johnson sold 5,497 shares on October 2, 2023, at an average price of $11.21, amounting to $61,621.37. After this transaction, Johnson’s holdings decreased by 3.44%, leaving her with 154,521 shares valued at approximately $1,732,180.41. In total, insiders sold 21,227 shares worth $233,744 in the last quarter, with corporate insiders currently owning 72% of the company’s stock.
Several hedge funds and institutional investors have also adjusted their holdings in OppFi recently. Financial Management Professionals Inc. acquired a new position valued at approximately $25,000 in the second quarter. Quarry LP and Accredited Wealth Management LLC also entered the market, with investments of $27,000 and $49,000, respectively. Russell Investments Group Ltd. significantly increased its stake by 217.6% during the second quarter, acquiring an additional 3,207 shares, bringing its total to 4,681 shares valued at $65,000. Overall, institutional investors currently hold 7.10% of OppFi’s stock.
OppFi, headquartered in Chicago, Illinois, operates as a financial technology company focused on providing digital lending and credit solutions tailored for near-prime consumers. The company’s platform allows borrowers to access unsecured installment loans under the OppLoans brand, utilizing advanced data analytics and machine learning to assess credit risk and streamline the lending process.
As market dynamics evolve, investors and analysts will continue to monitor OppFi’s performance closely, particularly in light of the recent ratings adjustments and insider activities.
