NEW YORK - Medallion Financial Corp. (NASDAQ:MFIN), a company specializing in consumer and mezzanine loans, has received an endorsement from Institutional Shareholder Services (ISS) for its incumbent board nominees and executive compensation approach. ISS, a prominent proxy advisory firm, has recommended that shareholders vote in favor of the two board members up for re-election, Robert M. Meyer and David L. Rudnick, at the upcoming Annual Meeting on June 11, 2024.
In a report dated May 24, 2024, ISS acknowledged Medallion's total shareholder return (TSR), which has surpassed that of its peers and the broader market over the last one, three, and five years. The firm also cited the company's operational performance, its recovery from the taxi medallion crisis, and the growth of its consumer recreation and home improvement portfolios as reasons for its support.
ISS's backing extends to the company's executive compensation, highlighting the alignment of pay and performance, as well as the introduction of performance equity with multi-year goals into the long-term incentive (LTI) program. Alvin Murstein, Chairman & CEO of Medallion, and Brent O. Hatch, Lead Independent Director, expressed their satisfaction with ISS's support, emphasizing the Board's focus on delivering value for shareholders and the company's successful transformation.
Shareholders have been urged to vote using the BLUE proxy card and to discard any materials sent by Stephen Hodges, a competing proxy solicitor. The company has made its definitive proxy statement and related materials available on its website for review.
Medallion's business includes originating and servicing loans in various industries, notably recreation and home improvement. Headquartered in New York City with its largest subsidiary, Medallion Bank, based in Salt Lake City, Utah, the company has been navigating through a challenging economic environment and regulatory landscape.
This news article is based on a press release statement from Medallion Financial Corp. and does not include any speculative content or subjective assessment. The information presented is intended to provide an unbiased overview of the company's recent endorsement by ISS and the forthcoming Annual Meeting.
InvestingPro Insights
As Medallion Financial Corp. (NASDAQ:MFIN) garners support from ISS for its board nominees and executive compensation strategy, it's worth noting some key financial metrics and insights from InvestingPro that investors may find valuable. Medallion's market capitalization stands at a modest 177.87 million USD, reflecting its position in the market. The company's P/E ratio is currently at a low of 3.74, which could signal an attractive valuation for investors looking for potentially undervalued stocks.
Another point of interest is the company's dividend yield, which as of the latest data, is an impressive 5.06%. This could be a draw for income-focused investors, especially considering the company's recent positive total shareholder return performance. Additionally, Medallion's stock price is at 75.41% of its 52-week high, which might indicate room for growth or a potential buying opportunity for those who believe in the company's fundamentals and future prospects.
For those seeking further insights, InvestingPro offers additional tips, including observations that Medallion is trading at a high P/E ratio relative to near-term earnings growth and analysts' expectations of a sales decline in the current year. There are 7 more InvestingPro Tips available for Medallion Financial Corp. at InvestingPro. For a deeper dive into the company's financial health and future outlook, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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