Mr Cooper Group Surpasses Expectations with Strong Q1 2024 Results

Barclays's Terence Malone raised their price target on Mr Cooper Group (NASDAQ: COOP) by 10.6% from $85 to $94 on 2024/04/25. The analyst maintained their Strong Buy rating on the stock.

Mr Cooper Group, a provider of servicing, origination, and transaction-based services for single-family residences in the United States, recently announced its financial results for the first quarter of 2024. The company reported impressive growth and delivered solid results, according to Malone's assessment of their Q1 2024 print released on April 24, 2024.

In Q1 2024, Mr Cooper Group surpassed expectations, reporting earnings per share (EPS) of $2.73. This figure not only beat the Zacks Consensus Estimate of $2.11 but also represented a significant increase of 295.7% compared to Q1 2023's EPS of $0.69. Furthermore, the company's revenue for the quarter stood at $564 million, exceeding the Zacks Consensus Estimate of $498.1 million and showing a substantial growth of 39.6% compared to the revenue of $404 million in Q1 2023.

Although management did not provide financial guidance in their press release or earnings call, Chairman and CEO Jay Bray expressed optimism about the company's performance. Bray mentioned that Mr Cooper Group had started the year with excellent momentum, with a rise in return on tangible common equity to 14.5%. He attributed this success to the strategic emphasis on technology, including significant investments in artificial intelligence (AI) and the cloud. Bray emphasized that these technological advancements positioned Mr Cooper Group to provide customers with exceptional service, operate as a trusted counterparty for industry stakeholders, and deliver sustainable investor returns.

President Mike Weinbach further highlighted the company's balanced business model, which was thriving in the current environment. Weinbach mentioned that the sub-servicing segment was experiencing strong momentum with clients, while the originations team had been agile in helping customers save money and access the equity they had built up in their homes. These factors contributed to the company's positive performance.

Following the release of Mr Cooper Group's quarterly report, other analysts also updated their ratings on the stock. Jay McCanless from Wedbush raised their price target by 17.6%, from $85 to $100, and maintained a Buy rating. Bose George from Keefe, Bruyette & Woods raised their price target by 7%, from $86 to $92, and also reiterated a Buy rating. Mark Devries from Deutsche Bank increased their price target by 2.3%, from $88 to $90, and maintained a Strong Buy rating.

It is worth noting that 100% of the top-rated analysts currently rate COOP as either Strong Buy or Buy. No analysts consider it a Hold, and no analysts recommend selling the stock.

Despite the positive analyst ratings, Mr Cooper Group's stock price has experienced a decline of 3.6% since the release of its latest quarterly report on April 24, 2024. However, when looking at the year-over-year performance, the stock is still up by an impressive 77.3%. During this period, COOP has outperformed the broader market, with the S&P 500 index showing a gain of 24%.

Terence Malone, the Barclays analyst who raised the price target on Mr Cooper Group, is ranked in the top 35% of Wall Street analysts by WallStreetZen. With an average return of 9.7% and a 75% win rate, Malone specializes in the Financial Services sector.

Mr Cooper Group Inc., formerly known as WMIH Corp., provides servicing, origination, and transaction-based services related to single-family residences in the United States. The company operates through two segments: Servicing and Originations. The Servicing segment handles activities such as collecting and disbursing borrower payments, investor reporting, customer service, and loan modifications. On the other hand, the Originations segment originates residential mortgage loans through its direct-to-consumer channel and also purchases loans from mortgage bankers and brokers. The company primarily operates under the Mr Cooper and Xome brands. Mr Cooper Group Inc. was incorporated in 2015 and is based in Coppell, Texas.

Want to get in touch? Email us at news@wallstreetzen.com.

WallStreetZen and Don Francis do not hold any positions in the companies mentioned in this article. The information and statistics provided herein are presented for general informational purposes only and may not be accurate, complete, or up-to-date. It should not be interpreted as a recommendation to buy or sell any stocks and should not be solely relied upon for making investment decisions. It does not take into account your financial situation or risk profile. All investors should conduct their own investment due diligence before buying a stock. WallStreetZen expressly disclaims any liability for the accuracy, reliability, or completeness of the analysts' information, price targets, ratings, or opinions.