HMPT - Home Point Capitals stock falls after Wedbush downgrades to Neutral

• Home Point Capital ( NASDAQ: HMPT ) stock has dropped 6.9% in Monday midday trading after Wedbush analyst Jay McCanless downgraded the stock to Neutral from Outperform as mounting competitive pressures combined with higher expenses make the lender a less attractive takeover target.
• The previous Outperform rating was based on the analyst's view that even with its financial difficulties the company was still an attractive takeover target given that it's one of the larger originators focused on the wholesale channel.
• In addition, Home Point Capital's ( HMPT ) Q2 earnings and revenue , reported last week, missed the Street consensus as its funded loan origination volume of $9.3B dropped from $12.6B in Q1 and from $25.5B in Q2 2021. It overall gain on sale margin fell to 42 basis points from 58 bps in Q1, mostly due to capital market-related activity.
• The Neutral rating aligns with the Quant rating of Hold and the average Wall Street rating of Hold
• Take a look at Home Point's ( HMPT ) cash flow from operations here.

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