Ocwen Financial Corporation (OCN) Stock Rating Lowered by Zacks Investment Research
Ocwen Financial Corporation (NYSE:OCN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Monday, May 22nd.
According to Zacks, “Ocwen's shares have underperformed the Zacks categorized Mortgage & Real Estate Services industry in the last six months. The company reported wider-than-expected loss in first-quarter 2017. The quarter witnessed decline in servicing and sub-servicing fees. Various regulatory probes as well as cease and desist orders are the major near-term concerns for the company. Moreover, elevated expenses are likely to hurt its financials in the near term. However, the company’s initiatives to diversify revenue sources along with its efforts to regain mortgage-servicing rights should help in top-line growth, going forward. Also, a strong balance sheet should support its financials in the near term.”
A number of other research analysts have also recently issued reports on the company. Compass Point upgraded Ocwen Financial Corporation from a “neutral” rating to a “buy” rating and decreased their target price for the company from $5.00 to $3.50 in a research report on Friday, April 21st. Keefe, Bruyette & Woods reiterated a “hold” rating and issued a $5.00 target price on shares of Ocwen Financial Corporation in a research report on Monday, April 10th. Piper Jaffray Companies upgraded Ocwen Financial Corporation from an “underweight” rating to a “neutral” rating and lifted their target price for the company from $2.00 to $3.50 in a research report on Monday, May 1st. Finally, Oppenheimer Holdings, Inc. reiterated a “hold” rating on shares of Ocwen Financial Corporation in a research report on Monday, May 8th. Six investment analysts have rated the stock with a hold rating and one has given a buy rating to the company. The stock presently has an average rating of “Hold” and a consensus target price of $3.75.
Shares of Ocwen Financial Corporation (NYSE:OCN) traded up 0.36% during midday trading on Monday, hitting $2.82. 1,458,669 shares of the stock were exchanged. Ocwen Financial Corporation has a 12-month low of $1.29 and a 12-month high of $6.15. The firm has a 50-day moving average price of $2.66 and a 200-day moving average price of $4.43. The company’s market cap is $351.32 million.
Ocwen Financial Corporation (NYSE:OCN) last posted its quarterly earnings results on Wednesday, May 3rd. The financial services provider reported ($0.26) EPS for the quarter, missing the Zacks’ consensus estimate of ($0.22) by $0.04. The company had revenue of $321.90 million during the quarter, compared to analyst estimates of $302.90 million. Ocwen Financial Corporation had a negative net margin of 8.79% and a negative return on equity of 5.55%. The firm’s revenue for the quarter was down 2.7% compared to the same quarter last year. During the same period last year, the firm earned ($0.90) EPS. On average, equities analysts predict that Ocwen Financial Corporation will post ($1.11) EPS for the current year.
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In other news, major shareholder John Devaney purchased 3,040,209 shares of Ocwen Financial Corporation stock in a transaction dated Thursday, April 20th. The shares were bought at an average cost of $2.70 per share, for a total transaction of $8,208,564.30. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 5.17% of the company’s stock.
Several hedge funds have recently added to or reduced their stakes in the company. Metropolitan Life Insurance Co. NY boosted its stake in Ocwen Financial Corporation by 6.3% in the first quarter. Metropolitan Life Insurance Co. NY now owns 73,766 shares of the financial services provider’s stock valued at $404,000 after buying an additional 4,369 shares during the period. Paloma Partners Management Co purchased a new stake in Ocwen Financial Corporation during the first quarter valued at $104,000. Schwab Charles Investment Management Inc. boosted its stake in Ocwen Financial Corporation by 12.4% in the first quarter. Schwab Charles Investment Management Inc. now owns 1,221,629 shares of the financial services provider’s stock valued at $6,683,000 after buying an additional 134,332 shares during the period. Dimensional Fund Advisors LP boosted its stake in Ocwen Financial Corporation by 557.8% in the first quarter. Dimensional Fund Advisors LP now owns 3,093,048 shares of the financial services provider’s stock valued at $16,919,000 after buying an additional 2,622,863 shares during the period. Finally, Geode Capital Management LLC boosted its stake in Ocwen Financial Corporation by 7.9% in the first quarter. Geode Capital Management LLC now owns 776,278 shares of the financial services provider’s stock valued at $4,246,000 after buying an additional 56,974 shares during the period. Institutional investors own 47.56% of the company’s stock.
Ocwen Financial Corporation Company Profile
Ocwen Financial Corporation is a financial services holding company. The Company, through its subsidiaries, originates and services loans. The Company’s segments include Servicing, Lending, and Corporate Items and Other. The Company’s Servicing segment consists of its residential servicing business. The Company’s Lending segment is focused on originating and purchasing conventional and government-insured residential forward and reverse mortgage loans.
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