Santander Consumer USA (SC) Shares Up 5.2% on Strong Earnings

Shares of Santander Consumer USA Holdings Inc (NYSE:SC) shot up 5.2% during mid-day trading on Wednesday following a stronger than expected earnings report. The company traded as high as $19.06 and last traded at $18.75. 2,667,807 shares were traded during mid-day trading, an increase of 33% from the average session volume of 2,001,266 shares. The stock had previously closed at $17.82.

The financial services provider reported $0.64 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.60 by $0.04. The firm had revenue of $1.82 billion during the quarter, compared to analysts’ expectations of $1.76 billion. Santander Consumer USA had a return on equity of 13.00% and a net margin of 20.57%. During the same period in the previous year, the business posted $0.55 EPS.

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, November 15th. Shareholders of record on Saturday, November 10th will be issued a dividend of $0.20 per share. The ex-dividend date of this dividend is Thursday, November 8th. This represents a $0.80 annualized dividend and a yield of 4.23%. Santander Consumer USA’s dividend payout ratio is currently 45.98%.

Several brokerages have weighed in on SC. Zacks Investment Research raised Santander Consumer USA from a “hold” rating to a “strong-buy” rating and set a $22.00 price objective for the company in a report on Tuesday, July 31st. JPMorgan Chase & Co. reissued a “neutral” rating and set a $9.00 price objective on shares of Santander Consumer USA in a report on Monday, July 9th. Oppenheimer reissued a “hold” rating on shares of Santander Consumer USA in a report on Wednesday. Susquehanna Bancshares set a $26.00 price objective on Santander Consumer USA and gave the stock a “buy” rating in a report on Wednesday, July 25th. Finally, ValuEngine cut Santander Consumer USA from a “buy” rating to a “hold” rating in a research note on Tuesday, October 2nd. Nine equities research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. The stock currently has a consensus rating of “Hold” and an average target price of $22.50.

Hedge funds have recently made changes to their positions in the company. Macquarie Group Ltd. bought a new stake in shares of Santander Consumer USA in the 2nd quarter valued at about $118,000. Migdal Insurance & Financial Holdings Ltd. bought a new stake in shares of Santander Consumer USA in the 2nd quarter valued at about $124,000. Rehmann Capital Advisory Group increased its stake in shares of Santander Consumer USA by 366.0% in the 2nd quarter. Rehmann Capital Advisory Group now owns 8,276 shares of the financial services provider’s stock valued at $158,000 after acquiring an additional 6,500 shares during the last quarter. Meeder Asset Management Inc. increased its stake in shares of Santander Consumer USA by 253.8% in the 2nd quarter. Meeder Asset Management Inc. now owns 8,948 shares of the financial services provider’s stock valued at $171,000 after acquiring an additional 6,419 shares during the last quarter. Finally, Advisors Preferred LLC increased its stake in shares of Santander Consumer USA by 466.5% in the 2nd quarter. Advisors Preferred LLC now owns 9,370 shares of the financial services provider’s stock valued at $179,000 after acquiring an additional 7,716 shares during the last quarter.

The company has a market cap of $6.44 billion, a P/E ratio of 10.87, a PEG ratio of 0.48 and a beta of 1.12.

Santander Consumer USA Company Profile (NYSE:SC)

Santander Consumer USA Holdings Inc, a specialized consumer finance company, provides vehicle finance and third-party servicing in the United States. Its products and services include retail installment contracts and vehicle leases, as well as dealer loans for inventory, construction, real estate, working capital, and revolving lines of credit.

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