Are Open Lending Corporation (LPRO) stocks a prudent buy?

Open Lending Corporation [LPRO] stock prices are up 2.98% to $8.64 at the moment. One of the good ways to gauge the recent performance is if the stock’s short-term value is rising or falling. The LPRO shares have gain 6.54% over the last week, with a monthly amount glided 29.15%, and seem to be holding up well over a long-time horizon.

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From an analyst’s perspective:

Open Lending Corporation [NASDAQ: LPRO] stock has seen the most recent analyst activity on August 05, 2022, when Stephens downgraded its rating to a Equal-Weight and also revised its price target to $13 from $22. Previously, Morgan Stanley downgraded its rating to Underweight on July 25, 2022, and dropped its price target to $8. On March 30, 2022, Deutsche Bank initiated with a Hold rating and assigned a price target of $25 on the stock. Goldman downgraded its rating to a Neutral and decreased its price target to $40 on July 23, 2021. Canaccord Genuity reiterated its recommendation of a Buy and raised its price target to $55 on June 28, 2021. Morgan Stanley started tracking with a Equal-Weight rating for this stock on April 12, 2021, and assigned it a price target of $40. In a note dated March 04, 2021, William Blair initiated an Outperform rating.

The stock price of Open Lending Corporation [LPRO] has been fluctuating between $6.11 and $21.12 over the past year. Currently, Wall Street analysts expect the stock to reach $12.45 within the next 12 months. Open Lending Corporation [NASDAQ: LPRO] shares were valued at $8.64 at the most recent close of the market. An investor can expect a potential return of 44.1% based on the average LPRO price forecast.

Analyzing the LPRO fundamentals

The most recent quarter, Open Lending Corporation [NASDAQ:LPRO] reported sales of 50.66 billion, representing a drop of -13.90%. Gross Margin for this corporation currently stands at +91.37% with Operating Margin at +69.69%, Pretax Margin comes in at +88.65%, and Net Margin reading is +67.74%.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 8.34 points at the first support level, and at 8.05 for the second support level. However, for the 1st resistance point, the stock is sitting at 8.84, and for the 2nd resistance point, it is at 9.05.

Open Lending Corporation [LPRO] reported earnings per share of $0.18 for its fiscal quarter that ended on 6/29/2022. Based on the Wall Street analysts’ estimates, the company was expected to report earnings of $0.17/share, meaning a difference of $0.01 and a surprise factor of 5.90%. By comparison, the stated earnings for the previous quarter ended on 3/30/2022 were $0.18 per share as compared to estimates of $0.17 per share, a difference of $0.01 representing a surprise of 5.90%.

Ratios To Look Out For

It’s worth pointing out that Open Lending Corporation [NASDAQ:LPRO]’s Current Ratio is 16.70. Also, the Quick Ratio is 16.81, while the Cash Ratio stands at 9.91. Considering the valuation of this stock, the price to sales ratio is 13.18, the price to book ratio is 17.85 and the P/E (TTM) ratio is 11.05.

Transactions by insiders

We now turn our attention to insider trading, which in the past 3 months has resulted in 6 insider buyings of 82,210 shares and 6 insider sellings of 20,873 shares.