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Category: Lendingtree (TREE)
Date: 14 January 2021 Stock price of LendingTree: $307.51 We take a look at the 3rd quarter 2020 earnings report of Lendingtree (TREE) a consumer platform provider. The Company offers consumers tools and resources, including free credit scores, that facilitate comparison-shopping for mortgage loans, home equity loans and lines of credit, reverse mortgage loans, auto loans, credit cards, deposit accounts, personal loans, student loans, small business loans, insurance quotes and other related offerings
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Doug Lebda, Chairman & CEO - I'm incredibly proud of the resiliency our Company has shown during this difficult period. While some of our businesses have been challenged as a result of the pandemic, other businesses are thriving and we continue make great strides in enhancing our My LendingTree offering "
More About LendingTree
LendingTree, Inc. is the parent of LendingTree, LLC and several companies owned by LendingTree, LLC (collectively, "LendingTree" or the "Company").
LendingTree operates what it believes to be the leading online consumer platform that connects consumers with the choices they need to be confident in their financial decisions. The Company offers consumers tools and resources, including free credit scores, that facilitate comparison-shopping for mortgage loans, home equity loans and lines of credit, reverse mortgage loans, auto loans, credit cards, deposit accounts, personal loans, student loans, small business loans, insurance quotes and other related offerings. The Company primarily seeks to match in-market consumers with multiple providers on its marketplace who can provide them with competing quotes for loans, deposit products, insurance or other related offerings they are seeking. The Company also serves as a valued partner to partners and other providers seeking an efficient, scalable and flexible source of customer acquisition with directly measurable benefits, by matching the consumer inquiries it generates with these providers. LendingTree, Inc. is headquartered in Charlotte,
LendingTree operates what it believes to be the leading online consumer platform that connects consumers with the choices they need to be confident in their financial decisions. The Company offers consumers tools and resources, including free credit scores, that facilitate comparison-shopping for mortgage loans, home equity loans and lines of credit, reverse mortgage loans, auto loans, credit cards, deposit accounts, personal loans, student loans, small business loans, insurance quotes and other related offerings. The Company primarily seeks to match in-market consumers with multiple providers on its marketplace who can provide them with competing quotes for loans, deposit products, insurance or other related offerings they are seeking. The Company also serves as a valued partner to partners and other providers seeking an efficient, scalable and flexible source of customer acquisition with directly measurable benefits, by matching the consumer inquiries it generates with these providers. LendingTree, Inc. is headquartered in Charlotte,
Overview of LendingTree 3rd quarter 2020 earnings report
Third Quarter 2020 Business Highlights
- Insurance revenue of $92.5 million grew 24% over third quarter 2019 and translated into Insurance segment profit of $37.0 million, up 23% over the same period.
- Home segment revenue of $78.9 million grew 2% over third quarter 2019 and produced segment profit of $25.2 million.
- Within Home, mortgage products revenue grew 14% over the prior year period.
- Consumer segment revenue of $48.4 million improved 30% sequentially over second quarter 2020 as personal loans revenue improved and student loans contributed seasonal strength.
- Within Consumer, personal loans revenue of $12.5 million improved from $8.8 million in second quarter 2020.
- Credit card revenue of $6.7 million remains depressed compared to prior year levels.
- Through September 30, 15.7 million consumers have signed up for My LendingTree.
LendingTree management commentary 3rd quarter 2020 earnings report
CHARLOTTE, N.C., Nov. 5, 2020 /PRNewswire/ -- LendingTree, Inc. (NASDAQ: TREE), operator of LendingTree.com, the nation's leading online financial services marketplace, today announced results for the quarter ended September 30, 2020.
"We're pleased to report another strong quarter at LendingTree," said Doug Lebda, Chairman & CEO. "I'm incredibly proud of the resiliency our Company has shown during this difficult period. While some of our businesses have been challenged as a result of the pandemic, other businesses are thriving and we continue make great strides in enhancing our My LendingTree offering. While 2020 has certainly not played out the way we expected, this period of time has given us an opportunity to renew our focus on strategy, innovation, and execution, and I'm increasingly confident in our market-leading position."
"We're pleased to report another strong quarter at LendingTree," said Doug Lebda, Chairman & CEO. "I'm incredibly proud of the resiliency our Company has shown during this difficult period. While some of our businesses have been challenged as a result of the pandemic, other businesses are thriving and we continue make great strides in enhancing our My LendingTree offering. While 2020 has certainly not played out the way we expected, this period of time has given us an opportunity to renew our focus on strategy, innovation, and execution, and I'm increasingly confident in our market-leading position."
J.D. Moriarty, CFO, added, "While demand from our partners remains muted in some of our key Consumer verticals, we're encouraged by the momentum we've seen over the last few months. Our Home segment is solid, and Insurance performed particularly well in the third quarter. The merits of the diversification we've put in place have never been more apparent, and we're using that strength to position the company to excel in 2021 and beyond.
LendingTree (TREE) stock price chart over the last 5 years
The image below shows the stock price history of LendingTree (TREE) over the last 5 years. And its been a very good time for LendingTree stockholders with the stock increasing by a whopping 459.3% over the last 5 years. No investor would say no to those kind of returns.
The stock of LendingTree (TREE) is trading at closer to its 52 week high than it is to its 52 week low which is a clear indication that the short term sentiment and momentum of LendingTree stock is positive at this point.
The stock of LendingTree (TREE) is trading at closer to its 52 week high than it is to its 52 week low which is a clear indication that the short term sentiment and momentum of LendingTree stock is positive at this point.
Latest stock valuation of LendingTree
So what is LendingTree (TREE) stock worth based on their 3rd quarter 2020 earnings report? Based on their earnings report our valuation model provides a target price (full value price) for LendingTree at $205.90 a stock .
We therefore believe the stock of LendingTree is overvalued at its current price of $307.51
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $205.90, thus a good entry point into LendingTree would be at $185.30 or below.
We expect the stock of LendingTree to pull back from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is heavily overvalued.
We therefore believe the stock of LendingTree is overvalued at its current price of $307.51
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $205.90, thus a good entry point into LendingTree would be at $185.30 or below.
We expect the stock of LendingTree to pull back from current levels in coming weeks and months to levels closer to our target price (full value price), as their stock is price is heavily overvalued.
Next earnings release of LendingTree
It is expected that LendingTree will release their 4th quarter 2020 earnings report in early April 2021
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