LendingTree (NASDAQ:TREE) Hits New 1-Year Low Following Analyst Downgrade

Shares of LendingTree, Inc. (NASDAQ:TREE) hit a new 52-week low on Thursday after Needham & Company LLC lowered their price target on the stock from $60.00 to $45.00. Needham & Company LLC currently has a buy rating on the stock. LendingTree traded as low as $29.77 and last traded at $31.72, with a volume of 1361374 shares changing hands. The stock had previously closed at $39.46.

TREE has been the topic of a number of other reports. Wall Street Zen lowered shares of LendingTree from a “strong-buy” rating to a “buy” rating in a research note on Monday, July 20th. Zacks Research lowered LendingTree from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, June 30th. JPMorgan Chase & Co. initiated coverage on LendingTree in a report on Tuesday, April 14th. They issued an “overweight” rating and a $50.00 price target for the company. Northland Securities set a $60.00 price objective on LendingTree in a research report on Thursday. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of LendingTree in a research note on Wednesday, June 24th. Five research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $61.33.

Trending Headlines about LendingTree

Here are the key news stories impacting LendingTree this week:

• Positive Sentiment: Revenue increased 25% year over year to approximately $313.4 million, driven primarily by strong performance in the insurance segment. LendingTree also reported $87.3 million in variable marketing margin and $35.2 million in adjusted EBITDA. LendingTree Reports Second Quarter 2026 Results
• Positive Sentiment: Management highlighted continued insurance momentum and investments in artificial intelligence, while targeting an adjusted EBITDA-to-variable marketing dollars ratio of 45%–50%. It expects small-business lending activity to recover after reaching a trough in the second quarter. LendingTree SMB Recovery and EBITDA Goal
• Positive Sentiment: Needham and Truist retained “buy” ratings, although both reduced their price targets to $45 and $70, respectively, indicating that analysts still see potential upside if LendingTree’s recovery plans succeed. Analyst Price Target Updates
• Neutral Sentiment: Higher home-insurance rates in Washington could increase consumer demand for insurance comparison services, but the broader effect on LendingTree’s marketplace is uncertain. Washington Home Insurance Rates
• Negative Sentiment: Second-quarter adjusted EPS of $0.68 missed the consensus estimate of $1.41, while revenue of $313.4 million also fell short of expectations. Earnings were pressured by higher costs and weaker consumer-related revenue. TREE Q2 Earnings Miss
• Negative Sentiment: The small-business segment slumped during the quarter, and management’s third-quarter revenue guidance of $325 million–$335 million was below the $337.3 million analyst consensus. The company also lowered its 2026 outlook, increasing investor concerns about near-term growth and profitability. LendingTree Small Business Segment Weakness

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Jennison Associates LLC acquired a new stake in shares of LendingTree during the fourth quarter valued at about $31,120,000. Jacobs Asset Management LLC acquired a new position in shares of LendingTree in the 1st quarter worth approximately $643,000. Punch & Associates Investment Management Inc. boosted its position in shares of LendingTree by 37.8% during the 1st quarter. Punch & Associates Investment Management Inc. now owns 647,038 shares of the financial services provider’s stock worth $27,745,000 after purchasing an additional 177,391 shares during the period. Evolve Private Wealth LLC purchased a new position in shares of LendingTree during the 1st quarter worth approximately $619,000. Finally, Mariner LLC increased its holdings in LendingTree by 31.5% in the 4th quarter. Mariner LLC now owns 1,760,407 shares of the financial services provider’s stock valued at $93,461,000 after purchasing an additional 421,826 shares during the last quarter. Institutional investors and hedge funds own 68.26% of the company’s stock.

LendingTree Price Performance

The company has a current ratio of 1.89, a quick ratio of 1.89 and a debt-to-equity ratio of 1.27. The company’s fifty day moving average is $40.20 and its two-hundred day moving average is $43.59. The stock has a market cap of $442.49 million, a price-to-earnings ratio of 2.46 and a beta of 2.00.

LendingTree (NASDAQ:TREE) last released its quarterly earnings results on Thursday, April 30th. The financial services provider reported $1.38 EPS for the quarter, missing analysts’ consensus estimates of $1.49 by ($0.11). LendingTree had a return on equity of 15.77% and a net margin of 14.33%.The firm had revenue of $319.07 million for the quarter, compared to analyst estimates of $321.32 million. During the same quarter last year, the company earned $0.99 earnings per share. The firm’s revenue for the quarter was up 36.5% on a year-over-year basis. As a group, research analysts predict that LendingTree, Inc. will post 3.64 earnings per share for the current year.

LendingTree Company Profile

LendingTree, Inc operates an online marketplace that connects consumers with a network of lenders and financial service providers. Through its platform, borrowers can compare loan offers for mortgages, home equity loans, personal loans, student loans, auto loans and small business financing. The company also offers tools for comparing credit cards and deposit accounts, allowing users to research rates and terms from a range of providers in one place.

Founded in 1996 by Doug Lebda, LendingTree pioneered the comparison-shopping model for consumer credit products.