Medallion Financial Corp. | $MFIN Stock | Shares Rise On Impressive Q4 Earnings


Medallion Financial Corp. (NASDAQ: MFIN)



Medallion Financial Corp. (MFIN), a national specialty finance company yesterday reported their fourth quarter and full year 2016 financial results. Medallion reported fourth quarter earnings of $0.29 per share. Medallion’s consumer lending portfolio reached $701 million a growth of 29%.  


Medallion Financial Corp. President’s Comments

“We continued to experience strong performance from Medallion Bank’s operations, led by our consumer lending business, in both the fourth quarter and throughout 2016,” stated Andrew Murstein, President of Medallion Financial. “Our primary focus in 2017 will be squarely on growing the earnings of Medallion Bank, and we will be pursuing the monetization of a minority interest in Medallion Bank at a valuation exceeding our current carrying value at year end.”

“In terms of medallion lending, our ongoing diversification efforts have led us to reduce our exposure to a historic low,” continued Mr. Murstein. “The Company has done a great job diversifying itself over the years. At the time of our IPO 20 years ago, approximately 80% of our total managed investments consisted of medallion loans. At year end, that number was the lowest it has ever been in the history of our company and was down to 35%. Furthermore, medallion loans which had produced most of our earnings in our early years were down to under 5% for 2016.”  Business Wire


MFIN Technical Analysis

medallionMFIN opened trading yesterday at $1.75 which was down from the previous day’s trading close of $1.80. Shares closed trading yesterday at $1.68 and spiked up after market to $2.27, equivalent to a 35% increase from the closing price. Taking a look at the daily chart we can see that the last time MFIN traded above these levels we have to go all the way back to February 24th, when it traded at $2.35.

Taking a closer look at the daily chart we can see that before the spike up MFIN had been in an overall downward trend dating back to August 1st, 2016 when it traded at $8.11. MFIN has a float of 20.59 million shares and traded 1.06 times the normal daily trading volume on Tuesday.

For trading purposes, I would like to see MFIN open trading on Wednesday above $2.05 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.10 from my entry position fearing anything more than that and the stock would start to fill in the gap up.


Company Profile

Medallion Financial Corp., through with its subsidiaries, operates as a specialty finance company in the United States. It originates, acquires, and services loans that finance taxicab medallions and various types of commercial businesses.

The company offers consumer loans for the purchase of recreational vehicles, boats, motorcycles, and trailers; equipment and related assets necessary to open a new business; or purchase or improvement of an existing business, as well as to finance small scale home improvements.

It also provides secured mezzanine loans to businesses in various industries, including manufacturing, and various service providers; and asset based loans to small businesses. In addition, the company offers other secured commercial loans that are focused on retail trade businesses; and other debt, mezzanine, and equity investment capital to companies in various industries.

Further, it raises deposits, and conducts other banking activities. The company was founded in 1995 and is headquartered in New York, New York.  Yahoo Finance