Acceleration

Imagine Owning Ocwen Financial And Trying To Stomach The 94% Share Price Drop (NYSE:OCN) as Ocwen President & CEO Glen Messina Acquires 132,000 Shares of the Company

Every investor in Ocwen should be aware of the most powerful shareholder groups. Institutions will often hold stock in bigger companies. Imagine Owning Ocwen Financial And Trying To Stomach The 94 per cent Share Price Drop as Ocwen President Glen Messina Acquires 132,000 Shares of the Company.

After the disclosing of a report filled with Security and Exchange Commission; a new transaction became apparent. The President & CEO of Ocwen Financial Corp, Glen Messina; completed a transaction in the open market by buying 132,000 shares at the average stock price of $1.5 of the corporation worth $197,560 US Dollars. Currently, Glen Messina holds 132,000 shares or 0.10% of the Company’s market cap.

The stock increased 2.72% or $0.04 during the last trading session, reaching $1.51. About 163,991 shares traded. Ocwen Financial Corporation (NYSE:OCN) has declined 52.62% since August 13, 2018 and is downtrending.

It has underperformed by 52.62% the S&P500.

Over the last month the Ocwen Financial Corporation (NYSE:OCN) has been much stronger than before, rebounding by 34%. But that doesn’t change the fact that the returns over the last half decade have been stomach churning. In fact, the share price has tumbled down a mountain to land 94% lower after that period. So we don’t gain too much confidence from the recent recovery. The million dollar question is whether the company can justify a long term recovery.

We really hope anyone holding through that price crash has a diversified portfolio. Even when you lose money, you don’t have to lose the lesson.

Ocwen Financial isn’t currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last five years Ocwen Financial saw its revenue shrink by 17% per year. That’s definitely a weaker result than most pre-profit companies report. So it’s not altogether surprising to see the share price down 43% per year in the same time period. This kind of price performance makes us very wary, especially when combined with falling revenue. Of course, the poor performance could mean the market has been too severe selling down. That can happen.

The company’s revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

NYSE:OCN Income Statement, July 11th 2019

Ocwen Financial shareholders are down 47% for the year.

Sept. 2019 UPDATE: Systematic Financial Management LP decreased its stake in Ocwen Financial Corp. (OCN) by 58.1% based on its latest 2019 Q2 regulatory filing with the SEC.

Systematic Financial Management Lp sold 293,290 shares as the company’s stock rose 11.76% . The institutional investor held 211,540 shares of the consumer services company at the end of 2019Q2, valued at $438,000, down from 504,830 at the end of the previous reported quarter. Systematic Financial Management Lp who had been investing in Ocwen Financial Corp. for a number of months, seems to be less bullish one the $265.15 million market cap company. The stock decreased 1.01% or $0.02 during the last trading session, reaching $1.97. About 6,545 shares traded.

Ocwen Financial Corporation (NYSE:OCN) has declined 52.62% since September 17, 2018 and is downtrending. It has underperformed by 52.62% the S&P500.

Some Historical OCN News

09/03/2018

The Law Offices of Vincent Wong Notifies Investors of an Investigation Into PHH Corporation in Connection with the Sale of the Company to Ocwen Financial Corporation;

19/04/2018

OCWEN FINANCIAL CORP – MESSINA MOST RECENTLY SERVED AS PRESIDENT AND CEO OF PHH;

23/03/2018

Fitch Upgrades Ocwen’s Notes on Criteria Change;

19/04/2018

OCWEN SAYS RON FARIS TO RETIRE AS PRESIDENT & CEO;

17/04/2018

The Law Offices of Vincent Wong Reminds Investors of an Investigation into PHH Corporation in Connection with the Sale of the Company to Ocwen Financial Corporation;

21/04/2018

DJ Ocwen Financial Corporation, Inst Holders, 1Q 2018 (OCN);

19/04/2018

OCWEN FINL NAMES GLEN MESSINA PRESIDENT-CEO;

26/04/2018

Paul Muolo: Under Mulvaney, the CFPB decides not to file any charges against Ocwen vendor Altisource;

24/04/2018

Ocwen Awarded Top Servicing Performance Rating from Fannie Mae for 2017

Since June 6, 2019, it had 1 insider buy, and 0 sales for $119,640 activity.

Every investor in Ocwen Financial Corporation (NYSE:OCN) should be aware of the most powerful shareholder groups. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.

Warren Buffett said that he likes ‘a business with enduring competitive advantages that is run by able and owner-oriented people’. So it’s nice to see some insider ownership, because it may suggest that management is owner-oriented.

Ocwen Financial is a smaller company with a market capitalization of US$231m, so it may still be flying under the radar of many institutional investors.

Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. Let’s take a closer look to see what the different types of shareholder can tell us about OCN.

What Does The Institutional Ownership Tell Us About Ocwen Financial?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Institutional investors own 46% of Ocwen Financial. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Ocwen Financial, (below). Of course, keep in mind that there are other factors to consider, too.

NYSE:OCN Ownership Summary, April 29th 2019

It would appear that 20% of Ocwen Financial shares are controlled by hedge funds. That’s interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Ocwen Financial

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.

Some Historical OCN News:

19/04/2018 – OCWEN FINANCIAL CORP – RON FARIS TO RETIRE AS PRESIDENT AND CHIEF EXECUTIVE OFFICER;

08/05/2018 – PHH CORP – PROVIDES UPDATE ON PROPOSED MERGER WITH OCWEN FINANCIAL CORPORATION;

29/05/2018 – Ocwen Fincl Corp Announces Resignation of Michael Bourque as Chief Fincl Officer;

09/04/2018 – OCWEN FINANCIAL – FOLLOWING THE $25 MLN PAY DOWN, CO HAS ABOUT $269.1 MLN OUTSTANDING UNDER ITS SENIOR SECURED TERM LOAN;

09/03/2018 –  The Law Offices of Vincent Wong Notifies Investors of an Investigation Into PHH Corporation in Connection with the Sale of the Company to Ocwen Financial Corporation;

03/05/2018 – Moody’s assigns definitive ratings to New Residential Mortgage Loan Trust 2018-2;

13/03/2018 – MOODY’S AFFIRMS ALTISOURCE’S B3 RATINGS, REVISES OUTLOOK TO POSITIVE;

29/05/2018 – OCWEN FINANCIAL: RESIGNATION OF MICHAEL BOURQUE AS CFO;

25/04/2018 – Moody’s assigns provisional ratings to New Residential Mortgage Loan Trust 2018-2;

23/03/2018 – OCWEN FINANCIAL CORP – CONTINUES TO SEEK RESOLUTIONS WITH MASSACHUSETTS ATTORNEY GENERAL

Operation Elder Abuse: United States and Texas Gov. Agencies and Branches Hijack Widow’s Legal Filings

Since Nov. 2023, US/TX gov. has intercepted the legal filings sent by 85-year old Joanna Burke, and refused to file time-sensitive pleadings.

Foreclosure Crisis Redux: 85-Year Old Widow Fights Against Criminal Theft of Property in Landmark Case

Legal Vigilance at 85: Widow’s Stand Against Unlawful Property Seizure as Her Brave Crusade Shines Light on Wall St. Property Theft Tactics.

Terror in Texas Courts as Deutsche Bank Sends in Legal Gestapo to Torture, Rob and Kill Homeowner

It’s not just predatory lending you have to worry about when challenging Wall St. Banks, it’s elder abuse and their murderous intent.

Investors sentiment decreased to 0.82 in Q1 2019.

Its down 0.46, from 1.28 in 2018 Q4.

It is negative, as 12 investors sold Ocwen Financial Corporation shares while 33 reduced holdings.

16 funds opened positions while 21 raised stakes. 60.78 million shares or 12.92% less from 69.79 million shares in 2018 Q4 were reported.

Janney Montgomery Scott Ltd Company reported 0% of its portfolio in Ocwen Financial Corporation (NYSE:OCN).

Citigroup invested in 788,753 shares or 0% of the stock.

Parametric Port Assocs Limited Liability Company stated it has 696,856 shares.

California Employees Retirement Sys holds 271,703 shares.

52,396 were reported by Ubs Asset Mgmt Americas.

Walleye Trading Ltd reported 14,605 shares.

Metropolitan Life Insur Com New York owns 23,789 shares.

Bnp Paribas Arbitrage Sa, a New York-based fund reported 30,143 shares.

1.40M are held by Bridgeway Mngmt Inc.

Ny State Common Retirement Fund accumulated 107,500 shares.

Prescott Gru Cap Management Ltd Llc, a Oklahoma-based fund reported 263,856 shares.

Pub Sector Pension Inv Board has invested 0% in Ocwen Financial Corporation (NYSE:OCN).

Saba Capital Mngmt Lp stated it has 0.03% of its portfolio in Ocwen Financial Corporation (NYSE:OCN).

Saba Capital Management, L.P. (“Saba”) is an Investment Adviser launched in 2009. Saba is a spin-out of one of the largest proprietary groups in the industry, ‘Saba Principal Strategies’, founded by Boaz Weinstein at Deutsche Bank in 1998. Saba’s senior investment team began working together at Deutsche Bank in the early 2000s, and is best known for having pioneered credit relative value and capital structure trading strategies.

Blackrock Inc holds 0% of its portfolio in Ocwen Financial Corporation (NYSE:OCN) for 8.17M shares.

Renaissance Tech Limited Liability Corporation holds 491,233 shares or 0% of its portfolio.

Ocwen Financial Corporation, a financial services holding company, engages in the servicing and origination of mortgage loans in the United States.

The company has market cap of $203.24 million.

The Company’s Servicing segment provides residential and commercial mortgage loan servicing, special servicing, and asset management services to owners of mortgage loans and foreclosed real estate.

It currently has negative earnings.

This segments residential servicing portfolio includes conventional, government insured, and non-agency loans.

 

More notable recent Ocwen Financial Corporation (NYSE:OCN) news were published by:

Globenewswire.com which released: “Ocwen Financial Schedules Conference Call “ Second Quarter 2019 Results – GlobeNewswire” on July 29, 2019,

also Seekingalpha.com with their article: “Ocwen Financial Q2 2019 Earnings Preview – Seeking Alpha” published on August 05, 2019, Seekingalpha.com published: “Two River Bancorp leads financial gainers, UMH Properties and eXp World Holdings among losers – Seeking Alpha” on August 09, 2019.

Homes Drenched in Blood: US Gov. Employ “Black Robed Executioner” Method of Killing Distressed Families

Mental illness issues re Sen. Fetterman and Judge Hildago publicly lauded but distressed homeowners are left to commit suicide by foreclosure.

Outlaw Federal Judge David Hittner to Sentence Texas Women Who Threatened Judge Aileen Canon

LIT does not condone threats of violence against judges, nor do we condone Judge David Hittner’s coverup of threats by his Magistrate Judge.

Texas: The $4 Million Dollar Wrongful Foreclosure Judgment Against Deutsche Bank and PHH Ocwen

Texan Dilemma: Will the corrupt Texas Courts and Gov. collude to settle with Deutsche Bank and PHH Ocwen, or obliterate $4M judgment?

Ocwen Financial Corp (NYSE:OCN) EVP Timothy J. Yanoti Acquires 25,000 Shares

15th Aug. 2019 – Ocwen Financial Corp (NYSE:OCN) EVP Timothy J. Yanoti purchased 25,000 shares of the company’s stock in a transaction dated Friday, August 9th. The stock was bought at an average cost of $1.34 per share, for a total transaction of $33,500.00. Following the completion of the purchase, the executive vice president now directly owns 25,000 shares of the company’s stock, valued at approximately $33,500. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link.

Shares of NYSE OCN opened at $1.46 on Thursday. The stock’s fifty day moving average price is $1.93. Ocwen Financial Corp has a twelve month low of $1.20 and a twelve month high of $4.35. The company has a current ratio of 9.87, a quick ratio of 9.87 and a debt-to-equity ratio of 18.07.

Ocwen Financial (NYSE:OCN) last released its quarterly earnings data on Tuesday, August 6th. The financial services provider reported ($0.67) earnings per share for the quarter, missing the consensus estimate of ($0.36) by ($0.31). Ocwen Financial had a negative return on equity of 35.88% and a negative net margin of 15.76%. The firm had revenue of $274.34 million for the quarter, compared to analyst estimates of $288.00 million. During the same quarter in the prior year, the firm earned ($0.22) earnings per share. The firm’s revenue for the quarter was up 8.2% on a year-over-year basis.

Separately, ValuEngine raised Ocwen Financial from a “hold” rating to a “buy” rating in a research report on Thursday, August 1st.

Institutional investors have recently modified their holdings of the company.

Tower Research Capital LLC TRC bought a new position in Ocwen Financial in the 2nd quarter valued at approximately $33,000.

Public Employees Retirement System of Ohio increased its holdings in Ocwen Financial by 26.8% during the fourth quarter. Public Employees Retirement System of Ohio now owns 28,872 shares of the financial services provider’s stock worth $39,000 after buying an additional 6,099 shares during the last quarter.

BNP Paribas Arbitrage SA increased its stake in shares of Ocwen Financial by 89.4% in the first quarter. BNP Paribas Arbitrage SA now owns 30,143 shares of the financial services provider’s stock worth $55,000 after purchasing an additional 14,232 shares in the last quarter.

Sigma Planning Corp purchased a new position in Ocwen Financial during the first quarter valued at approximately $65,000.

Finally, JPMorgan Chase & Co. lifted its position in Ocwen Financial by 32.4% during the second quarter. JPMorgan Chase & Co. now owns 37,958 shares of the financial services provider’s stock valued at $74,000 after purchasing an additional 9,285 shares during the last quarter. 57.24% of the stock is owned by institutional investors.

 

About Ocwen Financial

Ocwen Financial Corporation, a financial services holding company, originates and services loans in the United States, the United States Virgin Islands, India, and Philippines. Its Servicing segment provides residential and commercial mortgage loan servicing, special servicing, and asset management services to owners of mortgage loans and foreclosed real estate.

Imagine Owning Ocwen Financial And Trying To Stomach The 94% Share Price Drop (NYSE:OCN) as Ocwen President & CEO Glen Messina Acquires 132,000 Shares of the Company
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