Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
Fidelity Southern Corporation (NASDAQ: LION) shares have plunged 30 percent since January 4. FBR & Co’s Christopher Nolan initiated coverage of the company with a Market Perform rating and a price target of $18. The analyst commented that shares now reflect mortgage banking and indirect auto loans.
“The company has grown organically and via acquisitions and generates almost half of its revenue from fees related to mortgage banking and indirect auto loan originations and sales,” analyst Christopher Nolan wrote.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
The analyst added that investors usually value such businesses lower than their core commercial banking counterparts, which is why Fidelity’s shares trade at a discount to peers, despite the company’s good asset quality and equity returns that have been above 12 percent for the last three years.
Investor Caution Priced In
Indirect auto loans accounted for 47 percent of loans held for investment at 1Q16. “We note increased investor caution generally for indirect auto loan exposure given that it is often subprime,” Nolan wrote. He added, however, that the company’s average borrower FICO score is 760, the asset quality has been good, and the company can immediately scale down its exposure.
“We currently do not see a catalyst to change the business model; thus, we believe the company’s ongoing performance is currently priced into the shares,” Nolan commented.
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.