Shares of Ocwen Financial Corp. (OCN) reached a new 52-week high, touching $46.79 in the second half of the trading session on Jun 11, 2013. The closing price of this financial holding company reflects a solid year-to-date return of 26.9%. The trading volume for the session was 2.7 million shares versus a 3-month average volume of 2.4 million shares.
Despite the strong price appreciation, this Zacks Rank #3 (Hold) stock has plenty of upside left, given its expected year-over-year earnings growth of 204.7% for 2013.
On May 2, 2013, Ocwen reported first-quarter 2013 results with adjusted earnings of 64 cents per share up from the year-ago number of 25 cents. On a year-over-year basis, the results benefited from impressive top-line growth and a rise in interest income, partially offset by increased operating and interest expenses.
Moreover, in Apr 2013, Ocwen acquired Genworth Financial Home Equity Access, Inc. from Genworth Financial, Inc. (GNW) with approximately $22 million in cash. In the same month, Ocwen completed the acquisition of $84.6 billion worth of Fannie Mae mortgage servicing rights from Ally Bank.
In Feb 2013, the company acquired Residential Capital LLC’s MSRs in collaboration with Walter Investment Management Corp. (WAC). The company shelled out $2.1 billion for the deal, subject to post-closing adjustments.
Over the last 30 days, the Zacks Consensus Estimate for 2013 fell 1.8% to $4.33 per share but it rose 1.2% to $5.22 for 2014.
Ellington Financial LLC (EFC) is a better performing financial stock with a Zacks Rank #1 (Strong Buy).
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