Evaluating Open Lending: Insights From 7 Financial Analysts

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In the preceding three months, 7 analysts have released ratings for Open Lending LPRO, presenting a wide array of perspectives from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 1 3 2 1 0
Last 30D 0 1 0 0 0
1M Ago 0 0 0 0 0
2M Ago 0 0 0 0 0
3M Ago 1 2 2 1 0

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $7.21, a high estimate of $10.00, and a low estimate of $4.00. A 35.28% drop is evident in the current average compared to the previous average price target of $11.14.

Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of Open Lending among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
David Scharf JMP Securities Raises Market Outperform $9.00 $7.00
Mayank Tandon Needham Lowers Buy $8.00 $13.00
James Faucette Morgan Stanley Lowers Underweight $4.00 $6.00
Vincent Caintic Stephens & Co. Lowers Equal-Weight $6.00 $9.00
John Davis Raymond James Lowers Outperform $8.00 $12.00
Joseph Vafi Canaccord Genuity Lowers Hold $5.50 $20.00
David Scharf JMP Securities Lowers Market Outperform $10.00 $11.00

Key Insights:

  • Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Open Lending. This offers insight into analysts' perspectives on the current state of the company.
  • Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Open Lending compared to the broader market.
  • Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Open Lending's stock. This comparison reveals trends in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Open Lending's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Open Lending analyst ratings.

If you are interested in following small-cap stock news and performance you can start by tracking it here.

Discovering Open Lending: A Closer Look

Open Lending Corp is engaged in providing automated lending services to financial institutions. The company offers loan analytics, risk-based pricing, risk modeling, and automated decision technology. Its Lenders Protection Program ("LPP") enables automotive lenders to make loans that are largely insured against losses from defaults.

Key Indicators: Open Lending's Financial Health

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Decline in Revenue: Over the 3 months period, Open Lending faced challenges, resulting in a decline of approximately -48.67% in revenue growth as of 30 September, 2023. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.

Net Margin: Open Lending's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 11.55%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 1.38%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Open Lending's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.78%, the company may face hurdles in achieving optimal financial returns.

Debt Management: With a high debt-to-equity ratio of 0.69, Open Lending faces challenges in effectively managing its debt levels, indicating potential financial strain.

Understanding the Relevance of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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