LM Funding America (NASDAQ:LMFA) Shares Cross Below 50-Day Moving Average – Time to Sell?

LM Funding America, Inc. (NASDAQ:LMFA)’s stock price passed 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 traded.

Wall Street Analyst Weigh In

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

LM Funding America Stock Performance

The stock has a market capitalization of $1.91 million, a price-to-earnings ratio of -0.05 and a beta of 2.40. The firm has a fifty day moving average of $4.57 and a 200 day moving average of $7.09. The company has a debt-to-equity ratio of 0.10, a current ratio of 1.13 and a quick ratio of 1.13.

LM Funding America (NASDAQ:LMFA) last announced its quarterly earnings results on Friday, May 15th. The financial services provider reported ($11.75) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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 company had revenue of $2.11 million during the quarter, compared to analyst estimates of $3.00 million.

Insider Activity

In other news, CFO Richard D. Russell purchased 5,264 shares of the stock in a transaction that occurred on Tuesday, May 19th. The shares were purchased at an average cost of $5.50 per share, with a total value of $28,952.00. Following the completion of the acquisition, the chief financial officer owned 9,765 shares of the company’s stock, valued at approximately $53,707.50. This represents a 116.95% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 15.03% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Armistice Capital LLC raised its holdings in LM Funding America by 28.4% in the 2nd quarter. Armistice Capital LLC now owns 397,899 shares of the financial services provider’s stock worth $1,138,000 after purchasing an additional 87,905 shares during the period. Citadel Advisors LLC purchased a new position in LM Funding America during the third quarter worth approximately $139,000. Two Sigma Investments LP acquired a new stake in LM Funding America in the third quarter valued at approximately $100,000. Jane Street Group LLC acquired a new stake in LM Funding America in the second quarter valued at approximately $70,000. Finally, XTX Topco Ltd purchased a new stake in shares of LM Funding America in the second quarter valued at approximately $54,000. Institutional investors and hedge funds 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.