Zacks Investment Research cut shares of Ellie Mae (NYSE:ELLI) from a buy rating to a hold rating in a report issued on Friday morning.
According to Zacks, “Ellie Mae is benefiting from continued momentum in its Data Connect and Investor Connect offerings. Its continued focus on core business and Velocify is a positive. Increased adoption of new products and network strength aredriving its per loan revenues. The company added new components to the Encompass Lending Platform, enhancing its strong wholesale and correspondent channel capabilities. The depth in its product portfolio has been the major growth driver in recent times. However, Ellie Mae's serviceable industry, being concentrated to the financial mortgage industry is a major headwind for the company, especially, when the mortgage origination environment is facing hurdles such as low housing inventory and rising interest rates. Shares have underperformed the industry in the past year.”
ELLI has been the subject of several other reports. JMP Securities lowered their price target on Ellie Mae from $125.00 to $99.00 and set an outperform rating for the company in a research report on Friday, October 26th. Bank of America lowered their price target on Ellie Mae from $115.00 to $85.00 and set a neutral rating for the company in a research report on Friday, October 26th. Morgan Stanley set a $77.00 price target on Ellie Mae and gave the stock a hold rating in a research report on Friday, October 26th. Zelman & Associates lowered Ellie Mae from a hold rating to a sell rating in a research report on Monday, December 24th. Finally, Royal Bank of Canada lowered their price target on Ellie Mae to $109.00 and set an outperform rating for the company in a research report on Friday, October 5th. They noted that the move was a valuation call. Five equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating and five have issued a buy rating to the company’s stock. The company has an average rating of Hold and a consensus target price of $82.60.
ELLI opened at $67.67 on Friday. Ellie Mae has a 52 week low of $58.49 and a 52 week high of $116.90. The firm has a market cap of $2.31 billion, a PE ratio of 65.70, a PEG ratio of 4.95 and a beta of 1.27.
Ellie Mae (NYSE:ELLI) last released its quarterly earnings results on Thursday, October 25th. The software maker reported $0.43 EPS for the quarter, topping the consensus estimate of $0.33 by $0.10. Ellie Mae had a return on equity of 4.78% and a net margin of 7.11%. The business had revenue of $122.97 million during the quarter, compared to analyst estimates of $128.22 million. As a group, equities research analysts predict that Ellie Mae will post 0.93 EPS for the current year.
In other Ellie Mae news, VP Popi Heron sold 731 shares of Ellie Mae stock in a transaction dated Tuesday, October 30th. The stock was sold at an average price of $64.83, for a total transaction of $47,390.73. Following the completion of the sale, the vice president now directly owns 6,128 shares of the company’s stock, valued at approximately $397,278.24. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Gates Cathleen Schreiner sold 2,549 shares of Ellie Mae stock in a transaction dated Saturday, December 28th. The stock was sold at an average price of $64.00, for a total value of $163,136.00. Following the sale, the executive vice president now directly owns 44,338 shares of the company’s stock, valued at $2,837,632. The disclosure for this sale can be found here. Over the last quarter, insiders sold 23,957 shares of company stock valued at $1,528,598. 3.14% of the stock is currently owned by company insiders.
A number of hedge funds and other institutional investors have recently made changes to their positions in ELLI. Los Angeles Capital Management & Equity Research Inc. purchased a new stake in Ellie Mae during the 3rd quarter worth about $223,000. Oppenheimer & Co. Inc. purchased a new stake in Ellie Mae during the 3rd quarter worth about $342,000. Polen Capital Management LLC purchased a new stake in Ellie Mae during the 3rd quarter worth about $344,000. Palo Capital Inc. purchased a new stake in Ellie Mae during the 3rd quarter worth about $379,000. Finally, Trexquant Investment LP purchased a new stake in Ellie Mae during the 3rd quarter worth about $413,000.
About Ellie Mae
Ellie Mae, Inc provides cloud-based platform for the mortgage finance industry in the United States. The company provides Encompass, a proprietary software solution that combines lead management; loan origination and processing; underwriting; preparation of mortgage applications, disclosure agreements, and closing documents; loan funding and closing; compliance with regulatory and investor requirements; and enterprise management.
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