Is it too late to buy LendingTree (TREE) shares?
Headwaters Capital recently released its Q1 2021 Letter to Investors, a copy of which you can download here. The fund returned 0.4% for the quarter, underperforming its benchmark, the Russell Mid Cap Index, which returned 8.1% in the same quarter. You should check out the Top 5 Headwaters Capital Stock Picks for Investors to Buy Right Now, which could be the biggest winners of 2021.
In the Q1 2021 letter to investors, the fund highlighted a few stocks and LendingTree Inc. (NASDAQ: TREE) is one of them. LendingTree Inc. (NASDAQ: TREE) is an online lending marketplace. Over the past three months, LendingTree Inc. (NASDAQ: TREE) has lost 10.5% and on April 6 it had a closing price of $ 217.64. Here’s what the fund says:
“LendingTree is an online marketplace for consumer financial products such as mortgages, credit cards, personal loans and insurance. TREE Markets connect consumers seeking financial products with lenders and insurance companies, effectively serving as an outsourced marketing partner for lenders and insurers. TREE’s results were negatively affected by ongoing stimulus payments which have improved the health of consumers’ balance sheets and reduced demand for lending products, particularly credit cards and personal loans. Due to the decline in consumer loan demand, lenders have restricted their marketing budgets, which has resulted in a decline in TREE’s revenue. While it’s difficult to predict when consumer demand and therefore lender marketing budgets will rebound, I expect both to rebound to pre-COVID levels. In addition, the CEO of TREE has a strong incentive to improve the performance of the company: he waived a salary and instead accepted a performance-based option grant that can only be exercised when the stock price. share reaches a minimum market price of $ 432 (+ 108% of current share price). The CEO also owns a 16% stake in the company.
Earlier this month, we published an article revealing that Polen Capital Management is also bullish on LendingTree Inc. (NASDAQ: TREE) stock.
In the third quarter of 2020, the number of bull hedge fund positions in LendingTree Inc. (NASDAQ: TREE) stock increased by around 33% compared to the previous quarter (see chart here), so that a certain many other hedge fund managers believe in TREE’s growth potential. . Our calculations showed that LendingTree Inc. (NASDAQ: TREE) is not ranked among the top 30 most popular stocks among hedge funds.
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