Axos Fights Back Against Short Seller's 'Evergreening' Allegations
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
- Axos Financial Responds to Hindenburg Research: Axos Financial, Inc. responded to Hindenburg Research's short report, refuting misleading and false allegations made by the short seller.
- Credit Performance Update: The company stated that there have been no significant changes in credit performance since its last earnings call, providing detailed credit updates.
- Commercial Real Estate Portfolio Details: Axos disclosed that its largest commercial real estate portfolio had $5.22 billion in outstanding balances as of March 31, 2024, with a weighted average LTV of 40%.
- Risk Structure with Fund Partners: Axos structures its credits to hold the most senior secured position in loans, ensuring fund partners bear significant risk before any potential principal loss for Axos.
- Allegations of Manipulation: Hindenburg alleged potential manipulation or distortion in Axos' credit metrics, citing discrepancies in reported loan-to-value ratios compared to peers, suggesting the practice of loan "evergreening."
Analyst Views on EES
Wall Street analysts forecast EES stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for EES is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
