Will Investors Now Sell Nationstar Mortgage (NYSE:NSM) Stock Following Today’s, Morgan Stanley Downgrades?


Nationstar Mortgage (NYSE:NSM) Receives a Downgrade

Morgan Stanley has given Nationstar Mortgage (NYSE:NSM) shares a new “Underweight” rating in a very recent research note issued to clients and investors on Wednesday morning. This was a cut price from the earlier “Equal-Weight” rating.

From a total of 7 analysts covering Nationstar Mortgage Holdings (NYSE:NSM) stock, 3 rate it a ”Buy”, 0 a “Sell”, and 7 a ”Hold”. This means that 30% of the ratings are positive. The highest target price is $25 while the lowest target price is $12. The mean of all analyst targets is $23.14 with a 60.87% above today’s ($11.5) stock price. Nationstar Mortgage Holdings was the topic of 8 analyst reports since July 31, 2015 according to the firm StockzIntelligence Inc. Oppenheimer maintained shares on November 4 with “Outperform” rating. Zacks upgraded NSM stock in a recent report from August 26 to “Strong Sell” rating. Finally, FBR Capital upgraded the stock to “Market Perform” rating in a report issued on a July 31.

Approximately 283,566 shares of stock traded hands. Nationstar Mortgage Holdings Inc (NYSE:NSM) has declined 43.91% since May 13, 2015 and is downtrending. It has underperformed by 41.29% the S&P500.

The overall sentiment of institutions has decreased to 0.69 in Q2 2015. Its down 0.49, from 1.18 in 2015Q2. The ratio worsened, as 41 institutions have sold all the shares of Nationstar Mortgage Holdings Inc that they owned while 42 funds have taken shares off the table. 19 funds have purchased shares for the first time while 38 added to their positions. These institutions now hold 108.26 million shares or 2.84% less than the 111.42 million shares they owned in 2015Q2.

The Fund Fortress Investment Group Llc currently is holding shares equating to 14.22% of its total portfolio in Nationstar Mortgage Holdings Inc representing a total of 67.08 million shares. Another fund,Proxima Capital Management Llc, is holding a total of 1.79 million shares equating to 6.19% of their holdings. Additionally, Hirzel Capital Management Llc has a 1.88 million share stake in Nationstar Mortgage Holdings Inc which represents 3.71% of their total portfolio. The Fund, Kingstown Capital Management L.P., based out of New York, has also built up a stake in the stock, which represents a total of 3.51% of their total portfolio. Finally Mcglinn Capital Management Inc, a fund which is based in the state of Pennsylvania reported a total holdings of 77,300 shares.

Nationstar Mortgage Holdings Inc. is a real estate services firm engaged in delivery of servicing, origination and transaction services to single-family residences throughout the United States. The company has a market cap of $1.26 billion. The Company’s divisions are: Servicing, Originations and Solutionstar. It currently has negative earnings. The Firm provides residential mortgage servicers in the United States conducting activities through its Nationstar Mortgage and Champion Mortgage brands.

According to Zacks Investment Research, “Nationstar Mortgage Holdings, Inc. is a mortgage lender. It services loans throughout the United States and originates primarily conventional agency and government residential mortgage loans and also offers a diverse array of complementary services for mortgage investors. Nationstar Mortgage Holdings, Inc. is headquartered in Lewisville, Texas.”