STOCKS TELEGRAPH

Tag: financial services

  • Cohen & Company, Inc. (COHN) Stock Trends Lower After Period of Heightened Trade Activity Cools Off

    Cohen & Company, Inc. (COHN) Stock Trends Lower After Period of Heightened Trade Activity Cools Off

    Cohen & Company, Inc. (COHN) stock prices were down by a marginal 6.65% some time after market trading commenced on July 9th, 2021, bringing the price per share down to USD$25.25 early on in the trading day.

    Net Income

    Net income for the first quarter of 2021, ended March 31st, 2021, came out to USD$9.4 million, representing a net income of USD$6.98 per diluted share. This is comparable to the USD$3.1 million net loss reported for the prior-year quarter, representing a net loss of USD$7.64 per diluted share.

    Revenue Reports

    Revenues for the quarter were up USD$36.3 million as compared to the prior quarter, with the year-over-year increase being largely attributable to an increase of USD$1.1 million in net trading revenue. A USD$1.7 million decrease in asset management revenue also contributed to the difference, with the decrease being related to an incentive allocation earned by the company’s SPAC funds manager in the prior quarter.

    Dissecting Comparative Revenue Reports

    Further compounding the difference was an increase of USD$0.1 million in new issue and advisory revenue associated with insurance asset origination in Europe and the U.S. Most significantly, the company reported USD$36.8 million in the increase in principal transactions related to the closing of COHN’s second sponsored SPAC in February 2021. The move generated USD$73.2 million of principal transactions revenue for Q1 2021, partially offset by a reduction of USD$37.8 million in principal revenue generated from the closing of the company’s first sponsored insurance SPAC in the previous quarter.

    Liquidity Position

    The company reported USD$154.7 million in total equity as of March 31st, 2021, up from the USD$101.4 million reported as of December 31st, 2020. the non-convertible non-controlling interest component of total equity was USD$45 million as of March 31st, 2021, while the company reported USD$27.8 million as of December 31st, 2020. Accordingly, the total equity excluding the non-convertible, non-controlling interest component was USD$109.7 million as of March 31st, 2021, a USD$36.1 million increase from the USD$73.6 million reported as of December 31st, 2020.

    Contextualizing COHN and its Future Outlook

    With promising financials reported earlier in the quarter, COHN stocks have seen trading volume surge recently, positively impacting the company’s equity value. With the activity not being volatile enough to attribute to the meme stock phenomenon, the company seems to have caught the eyes of day traders who are capitalizing on the snowballing upward trajectory of the stock price. Long term investors are hopeful that the company will be able to leverage its resources to usher in more organic growth over the long term.

  • loanDepot, Inc. (LDI) Stock Trends Higher Following Changes in Executive Leadership

    loanDepot, Inc. (LDI) stock prices were up by a marginal 1.15% shortly after market trading commenced on June 25th 2021, bringing the price per share up to USD$13.14 early on in the trading day.

    Joint Venture

    June 3rd 2021 saw the company announce an innovative new joint venture by the name of Farm Bureau Mortgage. As the second-largest retail mortgage lender in the U.S, LDI is keen to collaborate with Farm Bureau Bank, with its member-base of more than 5 million. The joint venture will see the two finance giants work together to consolidate and expand their cumulative market footprint.

    Farm Bank Bureau

    The federally chartered Savings Bank, Farm Bank Bureau has its HQ in Nevada and offers a myriad of financial products and services, including, but not limited to, checking accounts, quto loans, credit cards, and business services. Having been in operation since 1999, the Bank has come to serve local Farm Bureaus and their members in a total of 45 states.

    Dividend Payout

    May 13th 2021 had seen the company announce a regular cash dividend of USD$0.08 oper share of its Class A common stock and Class D common stock. The dividend will be paid out on July 16th 2021 to investors who were stockholders of record as of the close of July 1st 2021.

    Net Income Reports

    Net income for the first quarter of the fiscal year 2021 was reported at USD$427.9 million, down from the USD$547.2 million reported in the previous quarter. Adjusted net income was down to USD$319.4 million for the quarter, down from USD$375.7 million for the fourth quarter of 2020. These quarter-over-quarter decreases were largely attributable to a decline in gain on sale margins and increases variable expenses arising from higher loan origination volume.

    Solid Liquidity Position

    As of March 31st 2021, the company reported USD$630.5 million in unrestricted cash and cash equivalent, a massive increase from their liquidity position as of December 31st 2020. This drastic increase is largely driven by the issuance of USD$600 million in senior notes, offset by USD$6 million as per the company’s existing operating agreement. AS per the same agreement, the company also dished out profit distributions in the amount of USD$160.3 million.

    Future Outlook for LDI

    Armed with a solid liquidity position and an exciting new joint venture, LDI is poised to continue its trajectory of success. Current and potential investors are hopeful that management will leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.