Home Point stock dips 17.7% after it reports $149M 1st quarter profit
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Home Point Capital Inc. shares tumbled 17.7% in afternoon trading after the Ann Arbor-based mortgage lender missed Wall Street expectations despite a booming housing market.
The company reported revenue of $422 million in the first three months of 2021, more than five times that received in the prior-year quarter. But it missed analyst expectations by nearly $42 million, according to financial news website Seeking Alpha. The $1.07 earnings per share, however, surpassed expectation by 37 cents.
Home Point reported a profit of $149 million in the first quarter after losing money during the same period in 2020. It originated a record $29.4 billion in loan volume, more than two-and-a-half times the amount it originated during the first quarter last year, as historically low interest rates spurred refinancing activity and home purchases.
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Cisco Systems Inc (NASDAQ: CSCO) as 2021’s Best Company to Work For, while
Hilton Worldwide Holdings Inc. (NYSE: HLT) topped the publication’s list as the Best Big Company to Work For.
Methodologies: In determining this year’s lists, Fortune partnered with the analytics firm Great Place to Work, which surveyed more than a half-million employees about their company’s handling of multiple issues such as crisis management, workforce relations and community involvement.
This year’s lists included corporate responses to several of the distinctive challenges impacting 2020, including the COVID-19 pandemic and subsequent economic recession, as well as the social unrest following the death of George Floyd.
Pontiac mortgage lender United Wholesale Mortgage Holdings Corp. s shares closed down on their first day trading on the New York Stock Exchange, and competitor Home Point Capital Inc. in Ann Arbor shared details on its own initial public offering.
UWMC shares closed down 1.65% on Friday, while market indexes were mixed. It completed on Thursday its $16.1 billion merger with a special-purpose acquisition company affiliated with the business of Alec Gores, brother to the Detroit Pistons owner. The stock closed at $11.35. But that is up 14% from the March IPO of the company with which UWM merged.
Meanwhile, Home Point took another step forward, saying it will offer publicly 12.5 million common shares on the Nasdaq from its stakeholders at a price between $19 and $21 per share under the ticker HMPT.
Another Southeast Michigan mortgage company intends to go public amid a housing market boom.
Ann Arbor-based Home Point Capital Inc. on Friday filed a registration statement with the U.S. Securities and Exchange Commission to make an initial public offer on the Nasdaq stock market under the ticker HMPT. The number of shares of common stock to be offered, their price range and when the offering will happen has not yet been determined, according to a news release.
Founded in 2015, Home Point is mostly a wholesale mortgage originator. It works with a network of 5,500 middlemen mortgage brokers nationwide that work with homeowners and buyers to find the best mortgages for them.