Stock Traders Buy High Volume of Call Options on LendingTree (NASDAQ:TREE)

LendingTree, Inc. (NASDAQ:TREE) was the target of some unusual options trading activity on Thursday. Stock traders bought 9,537 call options on the stock. This is an increase of 2,564% compared to the average daily volume of 358 call options.

Analysts Set New Price Targets

Several research firms have issued reports on TREE. Needham & Company LLC cut their price target on shares of LendingTree from $85.00 to $60.00 and set a “buy” rating on the stock in a report on Tuesday. Zacks Research lowered shares of LendingTree from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, December 30th. Wall Street Zen lowered shares of LendingTree from a “strong-buy” rating to a “buy” rating in a research note on Monday, November 10th. Keefe, Bruyette & Woods decreased their price target on shares of LendingTree from $83.00 to $70.00 and set an “outperform” rating for the company in a report on Wednesday. Finally, Weiss Ratings reissued a “hold (c-)” rating on shares of LendingTree in a report on Monday, December 29th. Six research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $73.17.

LendingTree Stock Performance

Shares of TREE traded up $1.21 during mid-day trading on Thursday, reaching $48.57. The company had a trading volume of 890,293 shares, compared to its average volume of 458,562. LendingTree has a 52-week low of $32.65 and a 52-week high of $77.35. The stock has a market capitalization of $664.00 million, a P/E ratio of 4.53 and a beta of 2.21. The stock has a 50 day moving average of $51.06 and a two-hundred day moving average of $57.45. The company has a quick ratio of 1.43, a current ratio of 1.75 and a debt-to-equity ratio of 1.35.

LendingTree (NASDAQ:TREE) last issued its quarterly earnings data on Monday, March 2nd. The financial services provider reported ($0.39) EPS for the quarter, missing analysts’ consensus estimates of $0.90 by ($1.29). LendingTree had a return on equity of 12.44% and a net margin of 13.55%.The firm had revenue of $310.92 million for the quarter, compared to analyst estimates of $286.56 million. The firm’s revenue for the quarter was up 22.3% on a year-over-year basis. On average, analysts expect that LendingTree will post 0.48 earnings per share for the current year.

Key Stories Impacting LendingTree

Here are the key news stories impacting LendingTree this week:

• Positive Sentiment: Record Q4 revenue and raised outlook — LendingTree posted a record ~ $1.12B in annual revenue with Q4 revenue up ~22% year-over-year and management guided 2026 sales toward roughly $1.33B, which investors interpreted as strong growth momentum. LendingTree hits record $1.12 billion in revenue as AI tools fuel growth
• Positive Sentiment: AI adoption cited as a growth driver — Multiple reports and the earnings call highlighted that AI tools are boosting lead generation and monetization, supporting the revenue beat and shaping a bullish narrative about sustainable top-line expansion. LendingTree’s revenue soars past $1 billion, fueled by AI adoption
• Positive Sentiment: Unusually large call-option volume — Traders bought ~9,537 call options (a ~2,564% increase vs. average), signalling short-term bullish speculative interest and likely contributing to intraday upside and elevated volume.
• Neutral Sentiment: Regulatory clarity on trigger leads — LendingTree publicly backed the Homebuyers Privacy Protection Act (Trigger Leads Bill), positioning the company as supportive of reforms that curb abusive practices while preserving marketplace competition; this reduces regulatory uncertainty but is not an immediate earnings driver. LendingTree Supports Implementation of Homebuyers Privacy Protection Act
• Neutral Sentiment: Analyst coverage remains constructive but mixed — Brokerages maintain a generally positive consensus (“Moderate Buy”), though Keefe, Bruyette & Woods trimmed its price target from $83 to $70 while keeping an outperform stance, reflecting cautious optimism. Benzinga Consensus Recommendation: Moderate Buy
• Negative Sentiment: Q4 earnings miss — Despite top-line strength, LendingTree reported a Q4 loss and missed EPS estimates, which is a negative for near-term profitability expectations and could cap multiple expansion until margin trends normalize. TREE Lags Q4 Earnings Estimates, Stock Up 23.9% on Revenue Growth

Institutional Investors Weigh In On LendingTree

Institutional investors have recently modified their holdings of the business. AlphaQuest LLC lifted its stake in LendingTree by 11.4% in the 2nd quarter. AlphaQuest LLC now owns 2,212 shares of the financial services provider’s stock worth $82,000 after purchasing an additional 227 shares in the last quarter. Ameritas Investment Partners Inc. increased its holdings in shares of LendingTree by 25.2% in the second quarter. Ameritas Investment Partners Inc. now owns 1,141 shares of the financial services provider’s stock valued at $42,000 after purchasing an additional 230 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in LendingTree by 1.3% during the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 23,899 shares of the financial services provider’s stock worth $886,000 after buying an additional 301 shares in the last quarter. Farther Finance Advisors LLC boosted its stake in LendingTree by 272.6% during the third quarter. Farther Finance Advisors LLC now owns 462 shares of the financial services provider’s stock worth $30,000 after buying an additional 338 shares during the last quarter. Finally, New York State Common Retirement Fund increased its stake in shares of LendingTree by 10.5% in the 3rd quarter. New York State Common Retirement Fund now owns 4,590 shares of the financial services provider’s stock worth $297,000 after acquiring an additional 436 shares during the last quarter. 68.26% of the stock is currently owned by institutional investors and hedge funds.

About LendingTree

LendingTree, Inc operates an online marketplace that connects consumers with a network of lenders and financial service providers. Through its platform, borrowers can compare loan offers for mortgages, home equity loans, personal loans, student loans, auto loans and small business financing. The company also offers tools for comparing credit cards and deposit accounts, allowing users to research rates and terms from a range of providers in one place.

Founded in 1996 by Doug Lebda, LendingTree pioneered the comparison-shopping model for consumer credit products.