Lendingtree Inc Stock Price, News & Analysis

On July 28, 2020, a LendingTree survey revealed that 43% of Americans have experienced debt due to car troubles, with 28% unable to afford a $500 repair without borrowing. The situation is more critical among minorities, especially 59% of Black Americans and 52% of Hispanic Americans. The pandemic has exacerbated these issues, with 35% of furloughed individuals incurring repair debt since March 2020. A significant 58% of respondents reported skipping necessary repairs due to cost. Many consumers still prefer cash to handle repairs, but 27% rely on credit cards.

LendingTree, Inc. (NASDAQ: TREE) will release its fiscal second quarter 2020 results on August 4, 2020, at 7:00 a.m. ET. A shareholder letter will also be available on their website. The company plans to hold a conference call at 9:00 a.m. ET on the same day, accessible via a toll-free number or their website. A replay will be available starting at 12:00 p.m. ET on August 4 until August 12, 2020.

According to a recent survey by CompareCards, approximately 70 million credit cardholders experienced involuntary credit limit reductions or account closures from mid-May to mid-July 2020. This represents more than one-third of credit card users. Notably, 34% reported having their limits reduced, with many experiencing cuts of $1,000 or less. Reasons cited include credit score declines, inactivity, and missed payments. Although the number of affected cardholders grew, the pace of these actions appeared to slow slightly. Men, high-income individuals, and parents with young children were the most impacted groups.

LendingTree, Inc. (NASDAQ: TREE) announced the pricing of a private offering of $500 million of 0.50% convertible senior notes due 2025. The offering, expected to close around July 24, 2020, will provide approximately $486.6 million in net proceeds. The notes have a conversion rate of 2.1683 shares per $1,000, representing a 30% premium over the last stock price. Proceeds will fund a convertible note hedge, repurchase $130.3 million of existing convertible notes due 2022, and support general corporate purposes. The offering is made under Rule 144A and is exempt from registration.

LendingTree, Inc. (NASDAQ: TREE) announced its intention to offer $500.0 million in convertible senior notes due 2025 in a private placement, with an option for an additional $75.0 million. The notes will be senior, unsecured obligations, paying interest semi-annually starting January 15, 2021, and maturing on July 15, 2025. Proceeds are expected to cover costs associated with note hedge transactions and repurchase existing notes due 2022. The offering is targeted at qualified institutional buyers and is not registered under the Securities Act.

A recent report by CompareCards reveals that 38% of Americans are currently boycotting at least one company, a significant increase from 26% in January 2019. This shift is attributed to factors like political disagreements and social justice issues, particularly the Black Lives Matter movement. Notably, 23% of boycotters cited accusations of racism against companies, while 51% of Gen Z and 52% of millennials are among the most likely to boycott. Additionally, 53% of consumers prefer companies that support charitable causes.

LendingTree, Inc. (NASDAQ: TREE) reported better-than-expected Q2 2020 results, with projected revenues between $182 - $186 million, exceeding previous estimates. The anticipated GAAP net loss stands at ($10) - ($8 million). Variable marketing margin is expected to reach $79 - $83 million, while Adjusted EBITDA is forecasted at $28 - $32 million. CEO Doug Lebda highlighted resilience amid economic challenges, particularly in the Home segment driven by low interest rates. Guidance for Q3 will be detailed in the upcoming earnings release.