In an outstanding display of market confidence, shares of Finance of America Companies Inc. ( FOA ) rose to a 52-week high, touching the price level of $30.34. With a market cap of $672 million, the company’s stock trades at an attractive P/E ratio of 2x. According to InvestingPro analysis, FOA currently trades close to its fair value, suggesting a balanced market valuation. This highlight reflects a significant milestone for the company, marking a period of strong growth and investor optimism. Over the past year, FOA has witnessed an incredible 191.79% change, with a particularly impressive momentum shown in its six-month return of 525%. The company showed solid fundamentals with revenue reaching $720 million and maintaining profitability. Investors are closely monitoring FOA’s progress as it continues to capitalize on strategic opportunities and expand its market presence. InvestingPro subscribers have access to 13 additional investment tips and a comprehensive Pro Research Report for deeper insight into FOA’s potential.
In other recent news, Finance of America reported strong third quarter results, exceeding guidance with net income reaching $204 million and adjusted EBITDA of $32 million. Funding volume reached an all-time high of $513 million, beating the forecast range of $475 million to $500 million. The company has seen significant growth in the equity-based retirement product market, particularly with their HomeSafe Second product, which experienced an 89% increase in volume over the second quarter.
Finance of America has completed a reverse stock split and an exchange offer for 2025 unsecured notes, further strengthening its financial position. The company also reported revenue growth from $79 million in the second quarter to $290 million in the third quarter. In addition, a $794 million HomeSafe product securitization was completed during the quarter, and HECM repurchase securitizations totaling $705 million were reissued in October.
Looking ahead, Finance of America forecasts adjusted earnings per share between $2.60 and $3 in 2025. The company remains bullish on the reverse mortgage market and the strength of its own products, expecting continued positive cash flow and financial growth. These recent developments underscore the company’s strategic focus on expanding into the equity-based retirement product market.
This article was generated with the help of AI and reviewed by an editor. See our T&C for more information.
