LendingTree, Inc. (NASDAQ: TREE)
LendingTree, Inc. (TREE), an online loan marketplace for consumers company yesterday reported their fourth quarter and full year 2015 financial results and provided guidance for 2016. LendingTree reported adjusted earnings of $2.69 per share which beat analyst expectations of $0.69 per share. LendingTree reported revenues of $78.3 million for the quarter which beat analyst expectations of $77.2 million.
LendingTree, Inc. CEO’s Comments
“LendingTree’s fourth quarter was phenomenal, posting record revenue in both mortgage and non-mortgage categories,” said Doug Lebda, Chairman and CEO. “Not only did we see year-over-year growth in every lending category, but several new offerings have proven to be significant revenue drivers. In mortgage, demand from new and existing lenders continues to grow as we improve our value proposition through high-touch relationships and marketing efficiencies, and the industry increases its online presence. In non-mortgage, the growth trajectory continued, with personal loans, credit cards and home equity experiencing marked growth in the quarter. These results are proof that the LendingTree brand can be leveraged to successfully expand into new financial categories while growing our existing products. Therefore, we’re materially increasing our outlook for 2016. And because we believe the current share price understates the strength of LendingTree’s growth prospects, and to reflect our commitment to delivering shareholder value, our Board of Directors has authorized the expansion of our stock repurchase program by $40 million.” PR Newswire
TREE Technical Analysis
TREE gapped up in price yesterday to $85.56, up from the prior day’s close of $69.94, which is a 22% increase in price. Taking a look at the daily chart we can see that the last time TREE traded above this price level was on January 12th when it traded at $86.63. Taking a closer look at the daily chart we can see that TREE has been on a recent upswing dating back to February 9th when it traded at $54.98. TREE has a low float of 6.4 million shares and is trading 2.5 times the normal daily trading volume. TREE did reach pre market highs of $86.40, but gave back $0.84 at the open, or equivalent to 1%. For trading purposes, my entry point would have been $85.70 looking for a run to $88. My stop loss would have been $85.50, fearing anything below that and the stock would start to fill in the gap up.
LendingTree, Inc., through its subsidiaries, operates an online loan marketplace for consumers seeking an array of loan types and other credit-based offerings in the United States. The company operates in four segments: Lending, Auto, Education, and Home Services. The Lending segment offers access to home mortgage loans, home equity loans or lines of credit, reverse mortgages, and personal loans to consumers through a network of approximately 300 banks, specialty finance providers, alternative lending platforms, credit unions, loan brokers, and other lenders or intermediaries through its lendingtree.com and getsmart.com Websites, as well as access to credit cards and small business loans. The Auto segment provides auto refinance and purchase loan products that enable consumers to purchase new or used vehicles, or refinance an existing loan secured by an automobile. The Education segment provides referrals to institutions and agencies for prospective students seeking institutions of higher education, as well as student loans, including new loans to finance an education and related expenses, and refinancing of existing student loans. The Home Services segment offers opportunities for consumers to research and find home improvement professional services through a network of national and local contractors. The company also provides information, tools, and access to personal credit data; credit repair and debt consolidation services; various consumer insurance products, including home and automobile, through which consumers are matched with licensed insurance agents and insurance lead aggregators to obtain insurance offer; and real estate brokerage services, through which consumers are matched with local realtors who can assist them in their home purchase or sale efforts. The company was formerly known as Tree.com, Inc. and changed its name to LendingTree, Inc. in January 2015. LendingTree, Inc. was incorporated in 2008 and is based in Charlotte, North Carolina. Yahoo Finance