Credit services companies aid individuals with limited credit history to secure loans or leases by providing them with an alternate means of demonstrating their ability to repay. Investors can profit from this growing industry by investing in individual stocks. Credit services stocks are more volatile than the market as a whole. But for investors willing to accept that risk, there’s potential for significant profits. These stocks tend to do well when the economy is booming and lending standards are loose.
During recessions, however, these stocks may also fall quicker than other sectors due to the increased risk of loan defaults. When you invest in a particular stock, you own a small piece of the company — known as common stock — and have rights as a shareholder.
Credit services companies provide financial services to individuals with limited or no access to traditional banking services. As a result, these companies can offer loans to individuals who might otherwise have difficulty accessing credit. This article looks at some of the best stocks for investors interested in this sector.
Credit services are essential for any consumer looking to buy a car, home, or anything else that requires financing. These stocks may not be as exciting as some other sectors, but they can still present solid investment opportunities. Many credit services companies operate within niche markets and cater to specific demographics that lack options for financing their needs. You should be aware of several sub-sectors within the credit services sector if you consider investing in this space.
CURO Group Holdings Corp.
According to the information presented in the table that TheStreetRatingsTable gives, TheStreet research analysts downgraded their rating of CURO Group (NYSE: CURO) from a “c” rating to a “d+” rating in a report that was published on Thursday. There have been several other research analysts, each of whom has contributed their viewpoints concerning the company.
The analysis of CURO Group, conducted by Jefferies Financial Group and published on July 26 and 26, represented the first time the company covered the company. The consensus recommendation for the stock was to “buy.” Credit Suisse Group indicated in research published on Monday, August 15, that they have reduced their price objective for CURO Group to $14.00. When trading started on Thursday, the price of CURO was $7.08 per coin. The stock’s moving average price for the last fifty days is $6.71, and the moving average cost for the previous two hundred days is $9.47.
The company’s market capitalization is currently at $285.67 million, while its beta value is 2.71. The price-to-earnings ratio for the company is set at 3.00. In recent months, institutional investors and hedge funds have either increased the number of shares they own in the company or decreased the percentage of ownership they currently hold in the business.
During the fourth quarter, Allspring Global Investments Holdings LLC expanded its holdings in CURO Group shares by purchasing additional interest in the company. The total capital expenditures for this transaction amounted to roughly $151,000. The percentage of CURO Group stock that Northern Trust Corporation owned as of the end of the fourth quarter grew by 1.0% as a result of this increase.
Since the end of the previous quarter, Northern Trust Corporation has acquired an additional 1,896 shares, bringing the total number of shares it holds in the company to 198,776. It brings the entire value of its holdings to $3,182,000 and 198,776 shares. In the final quarter of 2018, First Trust Advisors LP made an 11.4% purchase of more CURO Group stock, bringing its total holdings of the company’s shares to 58.6%.
Since the previous reporting period, First Trust Advisors LP has acquired an additional 3,493 shares, bringing the total number of shares owned by the company to 34,122. Based on the current price of the stock, this gives the company a market value of $546,000 for the stock. The Swiss National Bank invested roughly 656 thousand Swiss francs during the fourth quarter to acquire a new interest in the CURO Group. During the three months that ended on December 31, Dimensional Fund Advisors LP amassed a 9.4% gain in the number of shares of CURO Group stock it owned. Dimensional Fund Advisors LP now has a total of 314,158 shares worth a combined total of $5,029,000 after purchasing an additional 26,946 shares over the preceding quarter. It brings the total number of shares owned by the firm to 314,158.
Institutional investors and hedge funds hold a combined total of 38.72% of the company’s shares. CURO Group Holdings Corp. and its subsidiaries in the United States and Canada offer solutions for consumer loans. These services are available to customers in both countries. The organization provides various other financial services, including unsecured installment, secured installment, open-end, and single-pay loans. These services include check cashing, proprietary prepaid debit cards that can be reloaded, demand deposit accounts, retail installment sales, credit protection insurance, and money transfer services.
LendingClub Corporation
According to Bloomberg, the seven brokerages that cover LendingClub Co. (NYSE: L.C.) have given the company an average rating of “Moderate Buy,” which indicates that investors should consider purchasing the company’s stock. There are a total of four analysts who have recommended purchasing the stock, while there are a total of two analysts who have suggested maintaining the current holdings of the stock. The price goal of $37.40 has been established to be the average one-year price target calculated by analysts who wrote research on the firm in the previous year.
You may see the results of a recent study that several analysts have carried out and published regarding the company. In a research note issued on Thursday, July 28, Credit Suisse Group decreased its price target for LendingClub from $25.00 to $20.00 and gave the company a “neutral” rating in a research note. Wedbush stated in a research note released on July 26 that they have increased their price objective for LendingClub to twenty dollars from the previous price of fifteen dollars. According to some further information regarding the lending service, Annie Armstrong, an insider of LendingClub, sold 3,317 shares of the company’s stock on Tuesday, June 7.
The stock was bought and sold for $51,645.69, totaling $15.57 for each share. The business insider currently owns 104,918 shares, and the total value of those shares is around $1,633,573.26. The transaction was reported to the SEC through a filing, which can be found at the URL given before. Business insiders were responsible for the sale of 6,634 shares of stock over the preceding quarter, which resulted in a total profit of $98,821 for their efforts. Insiders of the corporation collectively possess 3.22 percent of the total shares outstanding in the company.
Recently, to reflect their new tactics, several institutional investors and hedge funds changed how they held their positions in the company’s stock. The value of Vanguard Group Inc.’s interests in LendingClub climbed by 6.8% over the year’s first three months. Vanguard Group Inc. now owns the credit services provider’s stock at a total of 9,801,535 shares following the acquisition of an additional 626,217 shares during the quarter. The price per share has increased to $154,668,000 at this point.
During the second quarter, State Street Corporation increased its total number of holdings in LendingClub by 11.8%, bringing the total number of shares it has in the company to 123. State Street Corp now holds 2,285,680 shares of the credit services provider’s stock, which is $26,720,000. It is a result of the acquisition of an additional 241,019 shares. Foundation Capital LLC made a new investment in LendingClub valued at more than $48,999,000.00 during the final three months of 2016. The number of LendingClub shares owned by Bank of America Corp DE increased by 154.0% during the first quarter due to the company’s recent stock purchases.
Following the acquisition of an additional 1,206,662 shares during the quarter, Bank of America Corp DE now holds a total of 1,990,352 shares of the financial services provider’s stock, which has a market value of $31,408,000. It brings the total number of shares held by Bank of America Corp DE to 1,990,352. LendingClub’s main shareholder, Point72 Asset Management L.P., increased its investment in the firm by 98.9% during the second quarter, making it the largest shareholder in the company.
Following the acquisition of a further 989,200 shares during the quarter, Point72 Asset Management L.P. now has a total of 1,989,500 shares of the stock held by the credit services provider, which is collectively valued at a total of $23,257,000. The current ownership of the company’s stock, which accounts for 80.27 percent of the total, is held by hedge funds and other institutional investors. When trading started on Friday, the price of one share of LendingClub was $13.82 per share.
The company’s price is now trading at an average of 13.71 dollars for the past 50 trading days and 14.73 dollars for the past 200 trading days. The quick ratio is 1.08, the current ratio is 1.12, and the debt-to-equity ratio is 0.11. These numbers pertain to financial ratios.
One year ago, LendingClub’s share price was as low as $11.16; a year ago, it reached a high of $49.21. LendingClub’s most recent earnings report was issued on July 27, the most recent data available (NYSE: L.C.). The provider of credit services reported earnings per share for the quarter of $0.45, which was $0.04 more than the projection compiled by experts, who estimated earnings per share of $0.41.
The company recorded a total of $330.10 million in revenue, significantly higher than the average projection of $298.97 million sales for the quarter. The company’s return on equity for the year was 27.96%, and the net margin for the company was 24.75 percent. LendingClub’s quarterly revenue climbed by 61.5% when measured against the same quarter in the prior year’s financial results. Compared to the prior year’s results for the same quarter, the company’s earnings per share came in at $0.09.
According to projections made by sell-side analysts, LendingClub will bring in an income of 1.5 cents per share during the current fiscal year. It increases compared to their earlier projection of 1.2 cents per share. The LendingClub Corporation is a holding company for the LendingClub Bank, National Association, which uses technology to provide a wide range of financial services and products to customers in the United States. LendingClub Corporation is a subsidiary of LendingClub Corporation.
LendingClub Bank, National Association, is the parent company of its wholly-owned subsidiary, LendingClub Corporation. The organization provides unsecured loans for personal and automobile purchases, patient financing, and education financing, in addition to commercial and industrial loans, small business loans, commercial real estate loans, and equipment leasing. In addition, the organization leases out equipment.
