Axos Financial Hit With Short Seller Report, Stock Tumbles
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
- Short Report on Axos Financial, Inc. by Hindenburg Research:
- Short seller Hindenburg Research issued a report alleging that Axos engaged in questionable loan practices like "evergreening" to avoid recognizing problems.
- Former employees described similar schemes of providing loans to non-performing borrowers to keep them afloat.
- Allegations include underestimation of credit losses and misrepresentation of loan-to-value ratios.
- The report suggests potential manipulation of credit metrics and challenges the adequacy of provisions for problematic loans.
- Auditors flagged concerns about the company's forecasts and its exposure to risky asset classes.
Analyst Views on ZIG
Wall Street analysts forecast ZIG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ZIG 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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Current: 38.879
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Current: 38.879
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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.
