Findell Capital pushes for board changes at Oportun

Published 20/03/2025, 12:06
Findell Capital pushes for board changes at Oportun

NEW YORK - Findell Capital Management LLC, holding approximately 9.1% of Oportun Financial Corporation’s (NASDAQ: OPRT) outstanding shares, has called for a revamp of the company’s board. Trading at $5.70, the stock has shown remarkable resilience with a 110% gain over the past year, according to InvestingPro data. Despite this performance, Findell criticizes the current board, led by CEO Raul Vasquez and Lead Director R. Neil Williams, for lack of lending experience and poor share price performance.

Findell claims that Oportun’s core lending business is strong but has been mismanaged, citing costly acquisitions and a bloated cost structure under CEO Vasquez’s leadership. While the company maintains strong liquidity with a current ratio of 9.47 and InvestingPro analysis suggests the stock is currently undervalued, the investment firm attributes a 64% decline in share price to the current board’s lack of lending expertise and conflicts of interest, particularly pointing to Williams’ previous professional relationship with Vasquez at Intuit Inc.

In a move to enhance shareholder value, Findell has nominated two candidates with lending and board experience to replace Vasquez and Williams. The firm argues that this change is vital to unlock Oportun’s potential and correct its undervalued market position, which currently sits at a discount compared to peers.

Findell highlights the positive impact of recently added board members with lending experience, crediting them with improved operating and stock price performance. While the company posted losses in the last twelve months, InvestingPro analysts expect a return to profitability this year. The firm suggests that further operational changes, such as reducing operating expenses and adjusting the APR cap, could significantly increase Oportun’s return on assets and share value.Discover more insights about Oportun and 1,400+ other stocks with InvestingPro’s comprehensive research reports, featuring detailed analysis of financial health, valuation metrics, and growth prospects.

The proposed board changes by Findell are part of a broader strategy to increase investor confidence and align the company with industry benchmarks. Findell plans to provide more details about its nominees and the current board’s performance in the coming weeks.

This article is based on a press release statement from Findell Capital Management LLC.

In other recent news, Oportun Financial Corp reported a strong performance for the fourth quarter of 2024, exceeding earnings expectations. The company achieved an earnings per share (EPS) of $0.49, significantly surpassing the forecasted $0.0013. Oportun Financial’s revenue reached $251 million, exceeding projections and contributing to a GAAP net income of $9 million, which marks a $51 million improvement year-over-year. The company’s adjusted EBITDA saw a substantial increase of 315% compared to the previous year. In addition to these earnings results, BTIG initiated coverage on Oportun Financial, assigning a Buy rating and a price target of $10.00, highlighting the stock’s recent 80% increase in value. BTIG’s analysis suggests Oportun Financial could achieve earnings growth comparable to industry peers, projecting a 211% year-over-year GAAP EPS growth in 2026. These developments reflect a positive outlook for Oportun Financial as it continues to enhance its financial performance.

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