TREE Should I Buy
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LendingTree Inc (TREE) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company has shown strong financial performance in Q4 2025 and positive growth in its insurance segment, the stock is currently experiencing a significant decline in price (-6.40% in the regular market and -1.51% in pre-market). Insider selling activity has surged, and there are no strong proprietary trading signals or favorable technical indicators to suggest an immediate entry point. Additionally, the options data reflects low put-call ratios, indicating limited bearish sentiment, but this does not outweigh the negative price momentum and insider selling trends. Holding off for a clearer upward trend or better entry point is recommended.
The MACD is above 0 and positively contracting, suggesting weakening bullish momentum. RSI is neutral at 50.09, and moving averages are converging, indicating no strong directional trend. Key support is at 41.128, with resistance levels at 48.097 and 52.402. The stock is currently trading near support, but no clear buy signal is present.
Strong Q4 2025 financial performance with 22.3% YoY revenue growth and significant improvement in net income and EPS.
Positive outlook for Q1 and FY26 revenue, exceeding consensus estimates.
Support for consumer-friendly legislation (Homebuyers Privacy Protection Act), which could enhance brand trust and market positioning.
Insider selling activity has surged by 1220.79% in the last month, signaling potential lack of confidence from insiders.
Stock price has declined significantly (-6.40% in the regular market and -1.51% in pre-market).
Broader market weakness with SP500 down 1.3%.
In Q4 2025, LendingTree reported revenue of $319.69 million, up 22.24% YoY. Net income increased to $144.66 million (+1827.20% YoY), and EPS rose to $10.27 (+1733.93% YoY). Gross margin improved slightly to 94.75%. The company provided a strong revenue outlook for Q1 2026 and FY26.
Analysts remain constructive on the stock, with multiple firms maintaining Buy or Outperform ratings. However, price targets have been lowered due to sector-wide valuation compression. Current price targets range from $60 to $76, indicating potential upside from the current price of $42.76.
