LendingTree Inc. [NASDAQ: TREE] loss -10.56% or -34.26 points to close at $290.02 with a heavy trading volume of 1717999 shares. The company report on November 17, 2020 that LendingTree Announces Pricing Of Secondary Offering Of 2,955,984 Shares Of Common Stock.
LendingTree, Inc. (NASDAQ: TREE) (“LendingTree” or the “Company”), a leading online loan marketplace, announced the pricing of an underwritten public offering (the “Public Offering”) of 2,955,984 shares of common stock by Ventures Holdco II, LLC (the “Selling Stockholder”), which is a wholly-owned subsidiary of GCI Liberty, Inc. (“GCI Liberty”), at the public offering price of $295.00 per share. Subject to the satisfaction of customary conditions, the Public Offering is expected to close on November 18, 2020.
Contemporaneously with the Public Offering, the Selling Stockholder is also offering an additional 488,005 shares of common stock pursuant to a private placement to be purchased by Royal Bank of Canada (the “Concurrent Private Placement”). The Public Offering is not contingent on the completion of the Concurrent Private Placement, but the Concurrent Private Placement is contingent on the completion of the Public Offering.
It opened the trading session at $294.00, the shares rose to $297.00 and dropped to $289.19, the range by which the price of stock traded the whole day. The daily chart for TREE points out that the company has recorded 12.81% gains over the past six months. However, it is still -113.69% lower than its most recent low trading price.
If we look at the average trading volume of 133.20K shares, TREE reached to a volume of 1717999 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about LendingTree Inc. [TREE]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for TREE shares is $360.18 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on TREE stock is a recommendation set at 1.70. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Deutsche Bank have made an estimate for LendingTree Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on November 10, 2020. While these analysts kept the previous recommendation, JP Morgan raised their target price from $280 to $330. The new note on the price target was released on November 06, 2020, representing the official price target for LendingTree Inc. stock. Previously, the target price had yet another raise from $275 to $375, while Needham kept a Buy rating on TREE stock. On July 17, 2020, analysts increased their price target for TREE shares from 250 to 280.
The Average True Range (ATR) for LendingTree Inc. is set at 17.57, with the Price to Sales ratio for TREE stock in the period of the last 12 months amounting to 3.97. The Price to Book ratio for the last quarter was 10.47, with the Price to Cash per share for the same quarter was set at 14.52. Price to Free Cash Flow for TREE in the course of the last twelve months was 74.68 with Quick ratio for the last quarter at 2.30.
Trading performance analysis for TREE stock
LendingTree Inc. [TREE] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -5.41. With this latest performance, TREE shares dropped by -13.60% in over the last four-week period, additionally plugging by 12.81% over the last 6 months – not to mention a drop of -21.11% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for TREE stock in for the last two-week period is set at 38.45, with the RSI for the last a single of trading hit 34.36, and the three-weeks RSI is set at 40.69 for LendingTree Inc. [TREE]. The present Moving Average for the last 50 days of trading for this stock 319.35, while it was recorded at 312.66 for the last single week of trading, and 285.17 for the last 200 days.
LendingTree Inc. [TREE]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and LendingTree Inc. [TREE] shares currently have an operating margin of +7.24 and a Gross Margin at +87.84. LendingTree Inc.’s Net Margin is presently recorded at +3.57.
Return on Total Capital for TREE is now 10.74, given the latest momentum, and Return on Invested Capital for the company is 6.14. Return on Equity for this stock inclined to 10.54, with Return on Assets sitting at 4.28. When it comes to the capital structure of this company, LendingTree Inc. [TREE] has a Total Debt to Total Equity ratio set at 91.38. Additionally, TREE Total Debt to Total Capital is recorded at 47.75, with Total Debt to Total Assets ending up at 38.78. Long-Term Debt to Equity for the company is recorded at 71.02, with the Long-Term Debt to Total Capital now at 37.11.
Reflecting on the efficiency of the workforce at the company, LendingTree Inc. [TREE] managed to generate an average of $35,646 per employee. Receivables Turnover for the company is 10.82 with a Total Asset Turnover recorded at a value of 1.20.LendingTree Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.30 and a Current Ratio set at 2.30.
LendingTree Inc. [TREE]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, LendingTree Inc. posted 1.12/share EPS, while the average EPS was predicted by analysts to be reported at 1.43/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -21.70%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for TREE. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for LendingTree Inc. go to 12.50%.
An analysis of insider ownership at LendingTree Inc. [TREE]
There are presently around $3,346 million, or 84.60% of TREE stock, in the hands of institutional investors. The top three institutional holders of TREE stocks are: BAILLIE GIFFORD & CO with ownership of 1,365,683, which is approximately -0.439% of the company’s market cap and around 4.90% of the total institutional ownership; ARK INVESTMENT MANAGEMENT LLC, holding 1,347,905 shares of the stock with an approximate value of $390.92 million in TREE stocks shares; and SUMITOMO MITSUI TRUST HOLDINGS, INC., currently with $287.58 million in TREE stock with ownership of nearly -0.025% of the company’s market capitalization.
Positions in LendingTree Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 102 institutional holders increased their position in LendingTree Inc. [NASDAQ:TREE] by around 951,037 shares. Additionally, 97 investors decreased positions by around 1,177,461 shares, while 41 investors held positions by with 9,408,434 shares. The mentioned changes placed institutional holdings at 11,536,932 shares, according to the latest SEC report filing. TREE stock had 25 new institutional investments in for a total of 76,116 shares, while 22 institutional investors sold positions of 180,365 shares during the same period.