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In a recent transaction, Jesse K. Bray, the Chief Executive Officer of Mr. Cooper Group Inc. (NASDAQ:COOP), sold 30,000 shares of the company’s common stock. The company, currently valued at $6.64 billion, has demonstrated strong performance with a 52.43% return over the past year. According to InvestingPro analysis, the stock appears slightly undervalued at current levels. The shares were sold at a weighted average price of $102.60, with the sales occurring at prices ranging from $101.31 to $103.69. This transaction, totaling approximately $3.08 million, was executed under a Rule 10b5-1 trading plan adopted by the Jesse K. Bray Living Trust in June 2024. Following this sale, Bray holds 728,821 shares indirectly through the trust and 232,071 shares directly. With the company trading at a P/E ratio of 13.21 and its next earnings report due on February 12, InvestingPro subscribers can access 7 additional key insights and a comprehensive Pro Research Report to better understand the company’s valuation and prospects.
In other recent news, Mr. Cooper Group Inc. has been the subject of analyst attention, with Piper Sandler and JMP Securities both maintaining positive outlooks. Piper Sandler reaffirmed its Overweight rating on Mr. Cooper, noting the company’s strong position in the mortgage servicing sector, which is anticipated to perform well amidst high-interest rates. The firm also highlighted the company’s potential to generate mid-to-high teens return on equity (ROE) in a challenging mortgage market.
On the other hand, JMP Securities initiated coverage on Mr. Cooper with a Market Outperform rating, suggesting a potential upside of approximately 25%. The firm’s analysts based their optimistic outlook on the company’s earnings potential, setting their price target at 8.5 times the estimated 2025 operating earnings per share (EPS). They also provided estimates for the company’s future earnings that are slightly more optimistic than the current consensus on Wall Street.
These developments follow Mr. Cooper’s ongoing efforts to achieve significant growth in operating earnings per share and book value, despite the difficulties in the mortgage industry. Both Piper Sandler and JMP Securities anticipate that a higher interest rate environment will drive servicing unpaid principal balance growth and industry consolidation, positioning Mr. Cooper favorably for future refinancing opportunities.
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