Finance of America Companies (NYSE:FOA) Raised to “Hold” at Zacks Research

Finance of America Companies (NYSE:FOA) was upgraded by research analysts at Zacks Research from a “strong sell” rating to a “hold” rating in a report issued on Monday, Zacks reports.

Several other brokerages have also recently issued reports on FOA. Alliance Global Partners started coverage on Finance of America Companies in a research report on Wednesday, July 22nd. They issued a “buy” rating and a $30.00 price target on the stock. Wall Street Zen raised Finance of America Companies from a “sell” rating to a “hold” rating in a research report on Saturday, October 3rd. B. Riley Financial reiterated a “buy” rating and issued a $32.00 target price (up from $25.00) on shares of Finance of America Companies in a research note on Wednesday, August 5th. Finally, Weiss Ratings downgraded Finance of America Companies from a “sell (d+)” rating to a “sell (d)” rating in a research note on Tuesday, August 11th. Two analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $30.50.

Finance of America Companies Trading Down 2.3%

NYSE FOA opened at $10.70 on Monday. The firm’s fifty day moving average is $13.82 and its two-hundred day moving average is $19.31. Finance of America Companies has a one year low of $10.04 and a one year high of $29.79. The company has a debt-to-equity ratio of 60.78, a quick ratio of 3.02 and a current ratio of 3.02. The firm has a market cap of $185.15 million, a PE ratio of -3.55 and a beta of 1.77.

Finance of America Companies (NYSE:FOA) last announced its earnings results on Tuesday, November 3rd. The company reported $0.28 earnings per share for the quarter, missing the consensus estimate of $1.26 by ($0.98). Finance of America Companies had a positive return on equity of 28.39% and a negative net margin of 0.10%. The business had revenue of $89.00 million for the quarter, compared to analyst estimates of $132.34 million. Analysts expect that Finance of America Companies will post 3.87 earnings per share for the current year.

Insider Activity at Finance of America Companies

In other news, CIO Jeremy Prahm sold 5,610 shares of the firm’s stock in a transaction on Monday, October 19th. The shares were sold at an average price of $10.74, for a total value of $60,251.40. Following the completion of the sale, the executive owned 150,246 shares in the company, valued at approximately $1,613,642.04. This trade represents a 3.60% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 43,110 shares of company stock valued at $729,971. 35.37% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the company. Public Employees Retirement System of Ohio purchased a new stake in Finance of America Companies in the 1st quarter valued at approximately $90,000. First Trust Advisors LP raised its stake in shares of Finance of America Companies by 43.7% during the 1st quarter. First Trust Advisors LP now owns 17,210 shares of the company’s stock worth $286,000 after buying an additional 5,236 shares in the last quarter. Prescott Group Capital Management L.L.C. raised its stake in shares of Finance of America Companies by 17.8% during the 3rd quarter. Prescott Group Capital Management L.L.C. now owns 66,206 shares of the company’s stock worth $837,000 after buying an additional 10,000 shares in the last quarter. Finally, Dimensional Fund Advisors LP lifted its holdings in shares of Finance of America Companies by 56.7% in the 1st quarter. Dimensional Fund Advisors LP now owns 102,061 shares of the company’s stock valued at $1,694,000 after buying an additional 36,929 shares during the period. 97.20% of the stock is owned by hedge funds and other institutional investors.

Key Finance of America Companies News

Here are the key news stories impacting Finance of America Companies this week:

• Positive Sentiment: Finance of America reported higher origination volume, indicating increased lending activity. Finance of America grows origination volume but reports $110M loss in Q3
• Positive Sentiment: Management forecast a $4–$5 adjusted EPS run rate in the second half of 2027, assuming margins normalize in the first half. The target is a potentially encouraging longer-term signal, but depends on execution and improved margins. Finance of America forecasts $4-$5 run rate adjusted EPS
• Positive Sentiment: Coverage described FOA as a leader in the reverse-mortgage market, a position that could support its business prospects. Finance of America Cements its Position as Leader in Reverse Mortgage Market
• Negative Sentiment: Q3 adjusted earnings were $0.28 per share, well below the $1.26 consensus and down from $1.33 a year earlier. Revenue of $89 million also missed the $132.34 million estimate, while one report cited a $110 million quarterly loss. The sharp shortfall is a key near-term headwind. Finance of America Companies misses Q3 earnings and revenue estimates

Finance of America Companies Company Profile

Finance of America Companies Inc (NYSE:FOA) is a financial services company focused on helping homeowners access and manage home equity. Its primary business is conducted through Finance of America Reverse, which provides reverse mortgage products and related services to older homeowners.

The company offers federally insured Home Equity Conversion Mortgages (HECMs), proprietary reverse mortgage products and reverse mortgage refinancing solutions. These products generally allow eligible homeowners to convert a portion of their home equity into funds while continuing to live in their homes, subject to applicable loan terms, taxes, insurance and maintenance requirements.