Shares of OppFi (NYSE: OPFI) experienced a downgrade from a strong-buy to a hold rating by Zacks Research, according to a report released on October 30, 2023. This shift reflects a cautious stance on the stock amid recent market conditions. Additionally, Weiss Ratings reaffirmed a “sell (d+)” rating for OppFi, further indicating mixed sentiments among analysts regarding the company’s future performance.
Currently, the consensus rating for OppFi stands at “Hold,” with an average price target of $13.63. Two research analysts have rated the stock as a buy, while two others have issued hold ratings and one has given it a sell rating.
Recent Earnings Performance
On October 29, 2023, OppFi released its quarterly earnings report, revealing earnings per share (EPS) of $0.46, surpassing the consensus estimate of $0.31 by $0.15. The company reported revenue of $155.09 million for the quarter, slightly exceeding the expected $153.42 million. OppFi’s net margin was recorded at 0.68%, while return on equity stood at an impressive 55.59%. For the fiscal year 2025, the company has set guidance for EPS between $1.540 and $1.600. Analysts forecast that OppFi will achieve $0.86 in EPS for the current fiscal year.
Insider Transactions and Institutional Interest
In recent insider trading, Director Jocelyn Moore sold 4,464 shares of OppFi on December 11, 2023, at an average price of $10.91, resulting in a transaction value of $48,702.24. Following this sale, Moore holds 47,266 shares, valued at approximately $515,672.06, reflecting an 8.63% decrease in her position.
Chief Financial Officer Pamela D. Johnson also sold 5,497 shares on October 2, 2023, at an average price of $11.21, totaling $61,621.37. After this transaction, Johnson’s holdings dropped by 3.44%, leaving her with 154,521 shares, valued at about $1,732,180.41. In the last quarter, insiders sold a total of 21,227 shares valued at $233,744, and corporate insiders now own 72.00% of OppFi’s stock.
A growing number of hedge funds and institutional investors have recently adjusted their stakes in OppFi. Financial Management Professionals Inc. acquired a new position in the company valued at approximately $25,000 in the second quarter. Quarry LP and Accredited Wealth Management LLC also purchased new positions worth $27,000 and $49,000, respectively. Russell Investments Group Ltd. increased its holdings by 217.6%, now owning 4,681 shares valued at $65,000. The Police & Firemen’s Retirement System of New Jersey similarly boosted its holdings by 56.7% during the same period.
Currently, hedge funds and other institutional investors hold 7.10% of OppFi’s stock, reflecting growing interest in the company.
OppFi, headquartered in Chicago, Illinois, is a financial technology firm that specializes in providing digital lending and credit solutions primarily for near-prime consumers in the United States. Established in 2013, the company offers unsecured installment loans through its OppLoans brand, leveraging advanced data analytics and machine learning to enhance credit risk assessment and streamline the lending process.
As the market continues to evolve, investors will be watching closely to see how OppFi navigates these changes and responds to analyst assessments in the coming months.
