Velocity Financial (VEL) Stock Price, News & Analysis

Company Overview

Velocity Financial, Inc. operates as a real estate finance company in the United States. It originates, securitizes, and manages a portfolio of loans, which are secured by first mortgage liens on income-producing and/or owner/user commercial properties, including investor 1-4, a non-owner occupied residential rental properties with 1-4 units; residential apartments combined with office or retail space; and multi-family comprising traditional apartment buildings, condominiums, and other residential properties with 5+ units. The company also finances for retail properties with various types of retail products and merchandise or services; commercial properties occupied by professional or business offices; and warehouse and other properties, which include self-storage units, auto services, hospitality, light industrial, and other commercial enterprises, as well as provides short-term and interest-only loans for acquisition and improvement of 1-4-unit residential properties. It offers its products through a network of independent mortgage brokers for independent real estate investors and small business owners. The company was founded in 2004 and is headquartered in Westlake Village, California.

Key Stats

• Today's Range: $20.20 to $20.59
• 50-Day Range: $19.05 to $20.76
• 52-Week Range: $13.78 to $20.85
• Volume: 194,587 shs
• Average Volume: 31,079 shs
• Market Capitalization: $669.92 million
• P/E Ratio: 10.94
• Dividend Yield: N/A
• Price Target: $21.50
• Consensus Rating: Moderate Buy

Velocity Financial Stock Analysis - MarketRank™

Velocity Financial scored higher than 24% of companies evaluated by MarketBeat, and ranked 844th out of 935 stocks in the finance sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 1.3 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

Velocity Financial has received a consensus rating of Moderate Buy. The company's average rating score is 2.50, and is based on 3 buy ratings, no hold ratings, and 1 sell rating.

Amount of Analyst Coverage

Velocity Financial has only been the subject of 1 research reports in the past 90 days.

Earnings and Valuation

• Score: 1.9 / 5
• Proj. Earnings Growth: 3.68%

Earnings Growth

Earnings for Velocity Financial are expected to grow by 3.68% in the coming year, from $1.90 to $1.97 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Velocity Financial is 10.94, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 113.36.

Price to Earnings Ratio vs. Sector

The P/E ratio of Velocity Financial is 10.94, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 26.74.

Price to Book Value per Share Ratio

Velocity Financial has a P/B Ratio of 1.52. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

Short Interest

• Score: 3.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

3.74% of the float of Velocity Financial has been sold short.

Short Interest Ratio / Days to Cover

Velocity Financial has a short interest ratio ("days to cover") of 20, which indicates bearish sentiment.

Change versus previous month

Short interest in Velocity Financial has recently decreased by 36.85%, indicating that investor sentiment is improving significantly.

Dividend

• Score: 0.0 / 5
• Dividend Strength: N/A

Dividend Yield

Velocity Financial does not currently pay a dividend.

Dividend Growth

Velocity Financial does not have a long track record of dividend growth.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

3.74% of the float of Velocity Financial has been sold short.

Short Interest Ratio / Days to Cover

Velocity Financial has a short interest ratio ("days to cover") of 20, which indicates bearish sentiment.

Change versus previous month

Short interest in Velocity Financial has recently decreased by 36.85%, indicating that investor sentiment is improving significantly.

News and Social Media

• Score: 1.8 / 5
• News Sentiment: N/A

News Sentiment

Velocity Financial has a news sentiment score of 0.27. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a lower news sentiment than the 0.77 average news sentiment score of Finance companies.

News Coverage This Week

MarketBeat has tracked 1 news article for Velocity Financial this week, compared to 2 articles on an average week.

MarketBeat Follows

1 people have added Velocity Financial to their MarketBeat watchlist in the last 30 days.

Company Ownership

• Score: 1.7 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, Velocity Financial insiders have not sold or bought any company stock.

Percentage Held by Insiders

Only 4.00% of the stock of Velocity Financial is held by insiders.

Percentage Held by Institutions

97.49% of the stock of Velocity Financial is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

VEL Stock Analysis - Frequently Asked Questions

How have VEL shares performed this year?

Velocity Financial's stock was trading at $17.22 on January 1st, 2024. Since then, VEL stock has increased by 17.5% and is now trading at $20.23.
View the best growth stocks for 2024 here.

How were Velocity Financial's earnings last quarter?

Velocity Financial, Inc. (NYSE:VEL) issued its quarterly earnings data on Thursday, August, 1st. The company reported $0.45 EPS for the quarter, topping analysts' consensus estimates of $0.43 by $0.02. The business earned $32.42 million during the quarter, compared to the consensus estimate of $32.80 million. Velocity Financial had a net margin of 51.06% and a trailing twelve-month return on equity of 14.50%.

When did Velocity Financial IPO?

Velocity Financial (VEL) raised $110 million in an IPO on Friday, January 17th 2020. The company issued 7,300,000 shares at a price of $14.00-$16.00 per share. Wells Fargo Securities, Citigroup and JMP Securities acted as the underwriters for the IPO and Raymond James was co-manager.

Who are Velocity Financial's major shareholders?

Velocity Financial's top institutional shareholders include Geode Capital Management LLC (0.59%), Empowered Funds LLC (0.42%), State Street Corp (0.41%) and Parallax Volatility Advisers L.P..
View institutional ownership trends.

How do I buy shares of Velocity Financial?

Shares of VEL stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

What other stocks do shareholders of Velocity Financial own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Velocity Financial investors own include NVIDIA (NVDA), Meta Platforms (META), Advanced Micro Devices (AMD), Netflix (NFLX), Broadcom (AVGO), Palo Alto Networks (PANW) and Invesco QQQ (QQQ).

Company Calendar

• Last Earnings: 8/01/2024
• Today: 12/21/2024
• Fiscal Year End: 12/31/2024

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Finance
• Industry: Nondepository credit institutions
• Sub-Industry: Banking
• Current Symbol: NYSE:VEL
• CUSIP: N/A
• CIK: 1692376
• Web: www.velfinance.com
• Phone: 818-532-3700
• Fax: N/A
• Employees: 220
• Year Founded: N/A

Price Target and Rating

• Average Stock Price Target: $21.50
• High Stock Price Target: $23.00
• Low Stock Price Target: $20.00
• Potential Upside/Downside: +6.3%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.50
• Research Coverage: 4 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $1.85
• Trailing P/E Ratio: 10.94
• Forward P/E Ratio: 10.65
• P/E Growth: N/A
• Net Income: $52.27 million
• Net Margins: 51.06%
• Pretax Margin: 67.88%
• Return on Equity: 14.50%
• Return on Assets: 1.41%

Debt

• Debt-to-Equity Ratio: 8.49
• Current Ratio: 36.72
• Quick Ratio: 36.72

Sales & Book Value

• Annual Sales: $195.70 million
• Price / Sales: 3.42
• Cash Flow: $2.24 per share
• Price / Cash Flow: 9.05
• Book Value: $13.33 per share
• Price / Book: 1.52

Miscellaneous

• Outstanding Shares: 33,115,000
• Free Float: 31,790,000
• Market Cap: $669.92 million
• Optionable: Optionable
• Beta: 1.04