Open Lending (NASDAQ:LPRO) Shares Gap Down - Should You Sell?

Open Lending Co. (NASDAQ:LPRO - Get Free Report) shares gapped down before the market opened on Friday . The stock had previously closed at $6.75, but opened at $6.13. Open Lending shares last traded at $5.90, with a volume of 57,004 shares trading hands.

Wall Street Analyst Weigh In

LPRO has been the subject of a number of recent analyst reports. Morgan Stanley lowered their target price on shares of Open Lending from $6.00 to $5.00 and set an "equal weight" rating for the company in a research note on Friday, August 9th. DA Davidson lowered their target price on shares of Open Lending from $9.00 to $8.00 and set a "buy" rating for the company in a research note on Monday, August 12th. JMP Securities lowered their target price on shares of Open Lending from $8.00 to $7.00 and set a "market outperform" rating for the company in a research note on Friday, August 9th. Finally, Needham & Company LLC reissued a "hold" rating on shares of Open Lending in a research note on Wednesday, October 2nd. Six research analysts have rated the stock with a hold rating and three have assigned a buy rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $6.56.

Open Lending Trading Down 12.6 %

The stock's 50 day moving average is $5.80 and its two-hundred day moving average is $5.82. The company has a market capitalization of $703.58 million, a PE ratio of 147.54 and a beta of 1.13. The company has a quick ratio of 13.32, a current ratio of 13.32 and a debt-to-equity ratio of 0.63.

Open Lending (NASDAQ:LPRO - Get Free Report) last released its quarterly earnings data on Thursday, August 8th. The company reported $0.02 earnings per share for the quarter, missing analysts' consensus estimates of $0.05 by ($0.03). The business had revenue of $26.73 million during the quarter, compared to analysts' expectations of $31.03 million. Open Lending had a return on equity of 2.90% and a net margin of 6.25%. The firm's revenue was down 29.9% compared to the same quarter last year. During the same period last year, the company earned $0.09 earnings per share. As a group, sell-side analysts predict that Open Lending Co. will post 0.18 EPS for the current fiscal year.

Institutional Trading of Open Lending

Several hedge funds have recently modified their holdings of the company. B. Metzler seel. Sohn & Co. Holding AG purchased a new stake in shares of Open Lending during the third quarter valued at about $1,153,000. Gilbert & Cook Inc. purchased a new stake in shares of Open Lending during the third quarter valued at about $205,000. Royce & Associates LP lifted its position in shares of Open Lending by 152.1% during the third quarter. Royce & Associates LP now owns 481,640 shares of the company's stock valued at $2,948,000 after buying an additional 290,602 shares during the last quarter. QRG Capital Management Inc. lifted its position in shares of Open Lending by 24.4% during the third quarter. QRG Capital Management Inc. now owns 18,148 shares of the company's stock valued at $111,000 after buying an additional 3,561 shares during the last quarter. Finally, Chicago Partners Investment Group LLC lifted its position in shares of Open Lending by 7.5% during the third quarter. Chicago Partners Investment Group LLC now owns 43,000 shares of the company's stock valued at $263,000 after buying an additional 3,000 shares during the last quarter. 78.06% of the stock is owned by hedge funds and other institutional investors.

Open Lending Company Profile

Open Lending Corporation provides lending enablement and risk analytics solutions to credit unions, regional banks, finance companies, and captive finance companies of automakers in the United States. The company offers Lenders Protection Program (LPP), which is a cloud-based automotive lending platform that provides loan analytics solutions and automated issuance of credit default insurance with third-party insurance providers.