Ocwen (OCN) Raised to “Buy” at Zacks Investment Research

Ocwen (NYSE:OCN) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Wednesday. The firm presently has a $5.25 target price on the financial services provider’s stock. Zacks Investment Research‘s target price suggests a potential upside of 12.90% from the company’s current price.

According to Zacks, “Ocwen's shares have significantly outperformed the industry in the last six months. Also, the company possesses an impressive earnings surprise history, beating the Zacks Consensus Estimate in three of the trailing four quarters. Its first-quarter 2018 results benefited from lower expenses, partly offset by a decline in revenues. The company’s initiatives to focus on core operations, efforts to restructure servicing portfolio and a strong balance sheet will support profitability. Further, lower operating expenses will likely aid its financials in the quarters ahead. However, muted revenue growth and the adverse impact of various regulatory probes into the company’s financials remain major concerns.”

Separately, ValuEngine lowered shares of Ocwen from a “hold” rating to a “sell” rating in a research note on Monday, April 2nd.

Ocwen stock opened at $4.65 on Wednesday. Ocwen has a 52 week low of $4.62 and a 52 week high of $4.69. The company has a debt-to-equity ratio of 10.16, a current ratio of 7.02 and a quick ratio of 7.02. The company has a market capitalization of $618.69 million, a P/E ratio of -4.95 and a beta of 1.20.

Ocwen (NYSE:OCN) last posted its quarterly earnings data on Wednesday, May 2nd. The financial services provider reported $0.02 EPS for the quarter, topping analysts’ consensus estimates of ($0.33) by $0.35. Ocwen had a negative net margin of 8.18% and a negative return on equity of 14.22%. The firm had revenue of $260.26 million during the quarter, compared to analyst estimates of $268.00 million. During the same quarter last year, the business posted ($0.26) EPS. The company’s revenue was down 19.1% on a year-over-year basis. equities analysts forecast that Ocwen will post -0.36 EPS for the current year.

In other news, major shareholder Leon G. Cooperman acquired 29,187 shares of the firm’s stock in a transaction that occurred on Friday, March 2nd. The stock was purchased at an average price of $3.54 per share, with a total value of $103,321.98. Following the purchase, the insider now owns 1,000,000 shares of the company’s stock, valued at approximately $3,540,000. The purchase was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, major shareholder Leon G. Cooperman acquired 314,448 shares of the firm’s stock in a transaction that occurred on Wednesday, February 28th. The stock was purchased at an average cost of $3.59 per share, with a total value of $1,128,868.32. Following the purchase, the insider now directly owns 1,000,000 shares in the company, valued at approximately $3,590,000. The disclosure for this purchase can be found here. Company insiders own 2.30% of the company’s stock.

A number of hedge funds have recently added to or reduced their stakes in the business. SG Americas Securities LLC lifted its position in Ocwen by 8.7% in the 1st quarter. SG Americas Securities LLC now owns 155,409 shares of the financial services provider’s stock worth $640,000 after buying an additional 12,500 shares in the last quarter. Thompson Siegel & Walmsley LLC lifted its position in Ocwen by 44.7% in the 1st quarter. Thompson Siegel & Walmsley LLC now owns 101,185 shares of the financial services provider’s stock worth $417,000 after buying an additional 31,270 shares in the last quarter. MetLife Investment Advisors LLC lifted its position in Ocwen by 169.0% in the 1st quarter. MetLife Investment Advisors LLC now owns 51,647 shares of the financial services provider’s stock worth $213,000 after buying an additional 32,446 shares in the last quarter. Teacher Retirement System of Texas purchased a new stake in Ocwen in the 4th quarter worth approximately $111,000. Finally, Element Capital Management LLC purchased a new stake in Ocwen in the 1st quarter worth approximately $151,000. Institutional investors own 52.03% of the company’s stock.

About Ocwen

Ocwen Financial Corporation, a financial services holding company, originates and services loans in the United States, the United States Virgin Islands, India, and Philippines. Its Servicing segment provides residential and commercial mortgage loan servicing, special servicing, and asset management services to owners of mortgage loans and foreclosed real estate.

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