LM Funding America (NASDAQ:LMFA) Stock Crosses Below 50 Day Moving Average – Should You Sell?

Shares of LM Funding America, Inc. (NASDAQ:LMFA) crossed below its 50-day moving average during trading on Tuesday . The stock has a 50-day moving average of $4.70 and traded as low as $2.54. LM Funding America shares last traded at $2.60, with a volume of 919,424 shares.

Analysts Set New Price Targets

Separately, Weiss Ratings reissued a “sell (e+)” rating on shares of LM Funding America in a research report on Wednesday, June 24th. One equities research analyst has rated the stock with a Buy rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $125.00.

LM Funding America Price Performance

The stock has a 50 day moving average of $4.70 and a 200-day moving average of $7.21. The company has a current ratio of 1.13, a quick ratio of 1.13 and a debt-to-equity ratio of 0.10. The stock has a market capitalization of $1.80 million, a P/E ratio of -0.05 and a beta of 2.40.

LM Funding America (NASDAQ:LMFA) last announced its quarterly earnings data on Friday, May 15th. The financial services provider reported ($11.75) EPS for the quarter, missing the consensus estimate of ($7.75) by ($4.00). LM Funding America had a negative net margin of 368.68% and a negative return on equity of 102.63%. The business had revenue of $2.11 million during the quarter, compared to the consensus estimate of $3.00 million.

Insider Activity

In related news, CFO Richard D. Russell purchased 5,264 shares of the business’s stock in a transaction dated Tuesday, May 19th. The shares were purchased at an average cost of $5.50 per share, for a total transaction of $28,952.00. Following the completion of the acquisition, the chief financial officer owned 9,765 shares in the company, valued at approximately $53,707.50. This trade represents a 116.95% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. Corporate insiders own 15.03% of the company’s stock.

Institutional Investors Weigh In On LM Funding America

A number of institutional investors and hedge funds have recently added to or reduced their stakes in LMFA. XTX Topco Ltd bought a new position in LM Funding America in the 2nd quarter worth about $54,000. Armistice Capital LLC raised its stake in shares of LM Funding America by 28.4% during the second quarter. Armistice Capital LLC now owns 397,899 shares of the financial services provider’s stock valued at $1,138,000 after acquiring an additional 87,905 shares in the last quarter. Jane Street Group LLC bought a new stake in shares of LM Funding America during the second quarter valued at approximately $70,000. Two Sigma Investments LP purchased a new stake in shares of LM Funding America in the third quarter valued at approximately $100,000. Finally, Citadel Advisors LLC purchased a new stake in shares of LM Funding America in the third quarter valued at approximately $139,000. Institutional investors own 22.73% of the company’s stock.

About LM Funding America

LM Funding America, Inc, headquartered in Miami, Florida, is a specialty finance company that provides retail installment contracts to subprime borrowers. The company originates, acquires, and manages motor vehicle retail financing through a network of franchised and independent automobile dealerships across the United States. LM Funding America holds and services its loan portfolio through its wholly owned subsidiary, LM Funding America Service Corp., and offers floorplan financing to new and used vehicle dealers through LM Funding Floorplan LLC.

Established in 2013, LM Funding America completed its initial public offering on the Nasdaq Stock Market in 2015, enabling the company to expand its lending operations and geographic presence.