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Velocity Financial updates equity distribution agreements

Published 12/14/2024, 03:40 AM
VEL
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In a recent filing with the Securities and Exchange Commission, Velocity Financial (NYSE:VEL), Inc. announced amendments to its Equity Distribution Agreements with BTIG, LLC, and Virtu Americas LLC. The amendments, effective as of Thursday, update the registration statement references in the agreements. According to InvestingPro data, Velocity Financial maintains a strong market position with a market capitalization of $685 million and impressive revenue growth of 35% over the last twelve months.

Velocity Financial, a Delaware-incorporated finance services company, confirmed that the total offering amount for shares of its common stock remains unchanged at $50 million. This figure includes shares previously sold under the same agreements. The company’s common stock is listed on the New York Stock Exchange under the ticker symbol NYSE:VEL.

The amendments specifically revise the text in the fourth paragraph of Section 1 of the Equity Distribution Agreements. The registration statement on Form S-3, previously filed with No. 333-258971, is now associated with File No. 333-283513.

In other recent news, Velocity Financial has seen major developments that have caught the attention of investors and analysts alike. The company reported a substantial 64% increase in loan origination volumes during its Q3 earnings call, reaching a total of $476.8 million. This coincided with a 29% rise in net interest income, while the net portfolio expanded by 22%, and earnings grew by 31%.

Analyst firms Raymond (NS:RYMD) James and BTIG have both shown confidence in Velocity Financial's performance. Raymond James maintained an Outperform rating for the company, with a revised price target of $23.00, following Velocity Financial's solid third-quarter performance. BTIG also increased the company's price target to $23.00, maintaining a Buy rating on the stock. This adjustment reflects an anticipated 10% increase in earnings for the next year.

JPMorgan has kept an Overweight rating on Hon Hai (TW:2317) Precision stock despite near-term challenges. Velocity Financial has projected strong demand to continue, with expectations of over $150 million in government-insured multi-loan originations in 2025.

The company also anticipates surpassing its $5 billion UPB portfolio goal by 2025, as evidenced by over 900 applications for more than $450 million in UPB received in October alone. These are the recent developments that have shaped the trajectory of Velocity Financial and Hon Hai Precision.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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