Have you been paying attention to shares of Mr Cooper (COOP) ? Shares have been on the move with the stock up 5.5% over the past month. The stock hit a new 52-week high of $77 in the previous session. Mr Cooper has gained 17.3% since the start of the year compared to the 6.8% move for the Zacks Finance sector and the 8.9% return for the Zacks Financial - Consumer Loans industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings con ...

For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Mr Cooper (COOP) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.Mr Cooper is one of 856 companies in the Finance group. The Finance group currently sits at #6 within the Zacks Sector Rank. The Zacks Sector Ra ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _____________________________________________________________________________________________________________ FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-35449 ___________________________ ...

The Zacks Consumer Loans industry continues to bear the brunt of high inflation and expectations of economic slowdown. This will dampen the demand for consumer loans and hamper industry players’ top-line growth. Deteriorating asset quality is a major near-term headwind too.However, easing lending standards, which have increased the number of clients eligible for consumer loans, stabilizing consumer sentiments and the digitization of operations will keep aiding consumer loan providers. Hence, industry player ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...

Investors interested in Finance stocks should always be looking to find the best-performing companies in the group. Has Mr Cooper (COOP) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Finance peers, we might be able to answer that question.Mr Cooper is a member of the Finance sector. This group includes 857 individual stocks and currently holds a Zacks Sector Rank of #4. The Zacks Sector Rank includes 16 different groups and is listed in ord ...

Capital Ratio above 20-25% Target Range at 12/31/2023⁽¹⁾ 14 | BALANCE SHEET SEGMENT OPERATING INCOME AND NON-GAAP RECONCILIATION ROTCE RECONCILIATION ⁽¹⁾ Return on Common Equity (ROCE) is computed by dividing annualized earnings by average common equity (book value) ⁽²⁾ Assumes GAAP tax-rate of 24.2% | --- | --- | --- | --- | --- | --- | |------------------------------------------------------------------|---------|---------|------------------------------------|---------|---------| | $ mm's except for per sh ...

Financial Data and Key Metrics Changes - The servicing portfolio grew 14% to $992 billion at year-end, establishing the company as the industry's number one servicer [11][19] - For the full year, ROTCE was 12.5%, with pretax operating earnings totaling $660 million, primarily driven by servicing [23][35] - Tangible book value at the end of the year was $63.67, reflecting a strong financial position [23] Business Line Data and Key Metrics Changes - The company acquired Home Point, adding an $83 billion portfolio, which was accretive to tangible book value [24] - Servicing income for the quarter totaled $229 million, slightly ahead of revised guidance, with expectations for steady growth but at a pace below portfolio growth [35] - The DTC platform is highly profitable, with investments aimed at driving lower costs and faster turn times [39] Market Data and Key Metrics Changes - The company is currently boarding a $90 billion portfolio for a new client, indicating strong market demand [34] - The option adjusted spreads from bulk MSR deals have more than doubled in the last three years, reflecting favorable market conditions [20] Company Strategy and Development Direction - The strategic focus is on return on equity, with expectations to reach mid to upper teens by the end of 2025 [15][71] - The company aims to play a leadership role in the mortgage industry with a scalable platform offering best-in-class efficiency [17] - Investments in technology, including AI, are expected to drive operational leverage and enhance customer experience [6][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth opportunities available, citing a significant pipeline of deals with rich margins [32] - The company anticipates some headwinds in 2024, including potential margin pressure from lower interest rates, but expects to offset this with increased originations [35][57] - Delinquencies have fallen to 1.3%, the lowest level in the company's history, indicating strong asset quality [72] Other Important Information - The company issued $1 billion in senior notes, enhancing liquidity and financial flexibility [41][43] - The balance sheet is described as being in the strongest shape ever, with a capital ratio of 29.3%, well above the target range [74] Q&A Session Summary Question: How should we think about your ability to onboard new MSRs over the next few quarters? - Management indicated that technology and processes are not limitations, and they can handle significant onboarding volumes [77][78] Question: Can you elaborate on the guidance for ROE 14% to 18%? - Management explained that the ability to invest in attractive MSRs will boost earnings, impacting the ROE positively [82][83] Question: What is the outlook for the servicing book mix between forward MSR and subservicing? - The expected mix for the first quarter is about two-thirds subservicing and one-third owned MSR, with a goal of achieving a 50-50 mix over the year [134] Question: How do you avoid a melting ice cube effect for the servicing portfolio? - Management stated that with an 80% recapture rate and low CPRs, the melting ice cube concept does not apply, as they are growing the portfolio through acquisitions and subservicing [120][121] Question: What are the implications of potential regulatory changes? - Management believes that their capital ratios are well above what is required of banks, indicating no concerns regarding regulatory impacts on growth [127][128]

For the quarter ended December 2023, Mr Cooper (COOP) reported revenue of $404 million, up 33.3% over the same period last year. EPS came in at $1.71, compared to $0.86 in the year-ago quarter.The reported revenue represents a surprise of +1.43% over the Zacks Consensus Estimate of $398.31 million. With the consensus EPS estimate being $1.37, the EPS surprise was +24.82%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine the ...

Mr Cooper (COOP) came out with quarterly earnings of $1.71 per share, beating the Zacks Consensus Estimate of $1.37 per share. This compares to earnings of $0.86 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 24.82%. A quarter ago, it was expected that this reinsurance company would post earnings of $1.73 per share when it actually produced earnings of $2.79, delivering a surprise of 61.27%.Over the last four quarters, the co ...