LM Funding America, Inc. (NASDAQ:LMFA) Sees Significant Growth in Short Interest

LM Funding America, Inc. (NASDAQ:LMFA) was the recipient of a significant increase in short interest during the month of June. As of June 15th, there was short interest totaling 383,718 shares, an increase of 80.8% from the May 31st total of 212,191 shares. Based on an average daily volume of 387,890 shares, the days-to-cover ratio is currently 1.0 days. Approximately 2.6% of the shares of the stock are sold short.

Analysts Set New Price Targets

Separately, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of LM Funding America in a research note on Wednesday, June 24th. One investment analyst has rated the stock with a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $5.00.

Insider Buying and Selling

In related news, CFO Richard D. Russell bought 131,600 shares of the business’s stock in a transaction on Tuesday, May 19th. The stock was acquired at an average cost of $0.22 per share, with a total value of $28,952.00. Following the purchase, the chief financial officer directly owned 244,147 shares of the company’s stock, valued at $53,712.34. The trade was a 116.93% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Insiders own 15.03% of the company’s stock.

Hedge Funds Weigh In On LM Funding America

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Anson Funds Management LP acquired a new position in shares of LM Funding America during the third quarter worth about $1,608,000. Sabby Management LLC acquired a new stake in LM Funding America in the third quarter valued at about $728,000. Armistice Capital LLC lifted its position in LM Funding America by 40.5% in the fourth quarter. Armistice Capital LLC now owns 527,611 shares of the financial services provider’s stock valued at $234,000 after purchasing an additional 152,171 shares during the period. Jane Street Group LLC boosted its holdings in LM Funding America by 782.6% in the 4th quarter. Jane Street Group LLC now owns 124,390 shares of the financial services provider’s stock valued at $55,000 after purchasing an additional 110,297 shares in the last quarter. Finally, Citadel Advisors LLC purchased a new stake in LM Funding America in the 3rd quarter valued at approximately $139,000. 22.73% of the stock is currently owned by hedge funds and other institutional investors.

LM Funding America Stock Performance

NASDAQ:LMFA opened at $0.15 on Thursday. The firm has a market capitalization of $2.60 million, a PE ratio of -0.07 and a beta of 2.40. The business’s fifty day moving average price is $0.22 and its 200 day moving average price is $0.33. The company has a debt-to-equity ratio of 0.10, a current ratio of 1.13 and a quick ratio of 1.13. LM Funding America has a 12 month low of $0.12 and a 12 month high of $5.14.

LM Funding America (NASDAQ:LMFA) last released its quarterly earnings data on Friday, May 15th. The financial services provider reported ($0.47) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.31) by ($0.16). The company had revenue of $2.11 million during the quarter, compared to analyst estimates of $3.00 million. LM Funding America had a negative net margin of 368.68% and a negative return on equity of 102.63%.

About LM Funding America

LM Funding America, Inc, headquartered in Miami, Florida, is a specialty finance company that provides retail installment contracts to subprime borrowers. The company originates, acquires, and manages motor vehicle retail financing through a network of franchised and independent automobile dealerships across the United States. LM Funding America holds and services its loan portfolio through its wholly owned subsidiary, LM Funding America Service Corp., and offers floorplan financing to new and used vehicle dealers through LM Funding Floorplan LLC.

Established in 2013, LM Funding America completed its initial public offering on the Nasdaq Stock Market in 2015, enabling the company to expand its lending operations and geographic presence.