Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Toronto Stock Exchange  >  Home Capital Group Inc    HCG   CA4369131079

SummaryChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

Home Capital : shares spike as company responds to regulatory probe

share with twitter share with LinkedIn share with facebook
share via e-mail
0
04/21/2017 | 07:29pm CEST

Shares in Home Capital Group, Canada's biggest non-bank mortgage lender, rebounded on Friday as the company said it would defend itself against allegations by regulators that it withheld information about fraud by mortgage brokers.

The company also said it expects to post an increase in first-quarter earnings, before one-off items, compared with a year ago, driven by strong results in its core residential mortgage business.

Its shares soared as much as 16.5 percent on Friday, recovering the majority of Thursday's losses, when its shares slid 20 percent.

In a statement after the market closed on Wednesday, the Ontario Securities Commission (OSC) accused Home Capital of making "materially misleading statements" to investors and named its current chief financial officer and two former chief executive officers.

"We will continue to vigorously defend our approach to disclosure in the (OSC) proceeding. While the OSC process may take some time, management and the board are focused on continued profitable growth and industry leading customer service," Home Capital Chairman Kevin Smith said in a letter to shareholders on Friday.

The OSC issued allegations against former Home Capital Chief Executives Gerald Soloway and Martin Reid and current Chief Financial Officer Robert Morton and set a hearing on the matter for May 4.

Reid's contract was terminated in March, with longtime director Bonita Then taking over temporarily until a replacement is found as the company said it required "leadership that can bring to bear a renewed operational discipline."

Shares in Home Capital have shed nearly 60 percent of their value over the past two years.

In July 2015, the company said it had suspended contracts with 45 independent mortgage brokers after an investigation found they had falsified information about borrowers' incomes.

Home Capital said at that time that it had released the information following a request by the OSC.

The company said on Friday that it expects to report earnings before one-off items of C$1.02 for the first quarter, compared with C$0.96 a year ago.

National Bank of Canada analyst Jaeme Gloyn on Thursday reiterated his "underperform" stance on the stock and cut his price target to C$23 from C$27 previously.

Gloyn cited uncertainty around the leadership change, the ongoing OSC enforcement proceedings and a potentially negative impact from regulatory changes.

The province of Ontario on Thursday introduced a number of measures to cool Toronto's housing market including a tax on foreign buyers.

(Reporting by Matt Scuffham, editing by G Crosse)

By Matt Scuffham

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on HOME CAPITAL GROUP INC
02:40a WARREN BUFFETT : 'Bailout' Buffett burnishes 'lender of last resort' image
06/22DJBERKSHIRE HATHAWAY : Warren Buffett's Berkshire Hathaway Rescues Canada's Home C..
06/22DJBERKSHIRE HATHAWAY : Warren Buffett's Berkshire Hathaway Rescues Canada's Home C..
06/22 HOME CAPITAL : Buffett's company lends $1.5B to Home Capital, invests $300M
06/22DJHOME CAPITAL : Canada's Home Capital Seeks to Further Shrink Debt Following Resc..
06/22 HOME CAPITAL : Berkshire Hathaway Announces Agreement to Invest in Home Capital
06/22DJBERKSHIRE HATHAWAY : Takes Big Stake in Troubled Canadian Lender
06/22 HOME CAPITAL : Warren Buffet's company buys into troubled Home Capital Group
06/22 HOME CAPITAL : Reaches Agreement with Berkshire Hathaway for Investment of up to..
06/21 HOME CAPITAL : Provides Update on Liquidity and Deposits
More news
Sector news : Retail & Mortgage Banks
02:40a WARREN BUFFETT : 'Bailout' Buffett burnishes 'lender of last resort' image
06/22 ALLIED IRISH BANKS : Irish finance minister 'very happy' with AIB IPO after book..
06/22 BNP PARIBAS : to cut jobs in revamp of French retail banking arm
06/22DJMalaysia's Permodalan Nasional Plans IPO of Highway Business
06/22DJPERMODALAN NASIONAL : It Is Probably the Right Time for Proposed Merger of AMMB ..
More sector news : Retail & Mortgage Banks
News from SeekingAlpha
06/22 MARC COHODES VS. BUFFETT : Don't Bring A Bibi Gun To A Nuclear Fight
06/22 Berkshire Hathaway steps into Home Capital Group
06/20 Home Capital Group raises cash with sale of commercial mortgages
06/15 Home Capital Group gains 13% after settlement
06/15 Will Canada's Housing Bubble Trigger A Banking Crisis?
Advertisement
Financials ( CAD)
Sales 2017 297 M
EBIT 2017 -
Net income 2017 66,7 M
Debt 2017 -
Yield 2017 -
P/E ratio 2017 30,37
P/E ratio 2018 14,50
Capi. / Sales 2017 3,23x
Capi. / Sales 2018 3,86x
Capitalization 959 M
More Financials
Chart HOME CAPITAL GROUP INC
Duration : Period :
Home Capital Group Inc Technical Analysis Chart | HCG | CA4369131079 | 4-Traders
Full-screen chart
Technical analysis trends HOME CAPITAL GROU...
Short TermMid-TermLong Term
TrendsBullishNeutralNeutral
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 11
Average target price 15,9  CAD
Spread / Average Target 6,4%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Bonita Joan Then President, Chief Executive Officer & Director
Brenda J. Eprile Chairman
Christer V. Ahlvik Co-COO, Secretary, EVP & Corporate Counsel
Christopher Whyte Co-Chief Operating Officer & Vice President
Fariba Rawhani Chief Information Officer
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
HOME CAPITAL GROUP INC-39.20%745
HOUSING DEVELOPMENT FI..29.39%40 145
FIRSTRAND LIMITED-12.00%20 449
BARCLAYS AFRICA GROUP ..-15.95%9 333
CAPITEC BANK HOLDINGS ..13.52%7 069
PEOPLE'S UNITED FINANC..-10.54%6 016
More Results