Zacks Investment Research Downgrades Ellie Mae (ELLI) to Hold

Zacks Investment Research lowered shares of Ellie Mae (NYSE:ELLI) from a buy rating to a hold rating in a research report report published on Friday morning.

According to Zacks, “Ellie Mae is benefiting from continued momentum in its Data Connect and Investor Connect offerings. Increased adoption of new products and network strength are driving its per loan revenues. The company added new components to the Encompass Lending Platform, enhancing its strong wholesale and correspondent channel capabilities. The depth in its product portfolio has been the major growth driver in recent times. Estimates have been stable lately ahead of the company’s Q4 bearnings release. The company has positive record of earnings surprises in recent quarters. However, Ellie Mae's serviceable industry, being concentrated to the financial mortgage industry is a major headwind for the company, especially, when the mortgage origination environment is facing hurdles such as low housing inventory and rising interest rates. Shares have underperformed the industry in the past year.”

Several other equities research analysts have also weighed in on ELLI. JMP Securities decreased their price objective on Ellie Mae from $125.00 to $99.00 and set an outperform rating for the company in a report on Friday, October 26th. Bank of America decreased their price objective on Ellie Mae from $115.00 to $85.00 and set a neutral rating for the company in a report on Friday, October 26th. Morgan Stanley set a $77.00 price objective on Ellie Mae and gave the stock a hold rating in a report on Friday, October 26th. Zelman & Associates lowered Ellie Mae from a hold rating to a sell rating in a report on Monday, December 24th. Finally, Royal Bank of Canada lowered Ellie Mae from an outperform rating to a sector perform rating in a report on Friday, October 26th. Five investment analysts have rated the stock with a sell rating, six have issued a hold rating and five have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of Hold and a consensus price target of $83.21.



NYSE ELLI opened at $81.92 on Friday. The firm has a market cap of $2.89 billion, a PE ratio of 79.53, a price-to-earnings-growth ratio of 6.20 and a beta of 1.38. Ellie Mae has a one year low of $58.49 and a one year high of $116.90.

In other Ellie Mae news, EVP Gates Cathleen Schreiner sold 2,549 shares of Ellie Mae stock in a transaction dated Friday, December 28th. The stock was sold at an average price of $64.00, for a total transaction of $163,136.00. Following the completion of the transaction, the executive vice president now owns 44,338 shares of the company’s stock, valued at approximately $2,837,632. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Sigmund Anderman sold 44,800 shares of Ellie Mae stock in a transaction dated Monday, February 4th. The shares were sold at an average price of $82.49, for a total value of $3,695,552.00. Following the transaction, the director now directly owns 6,945 shares of the company’s stock, valued at approximately $572,893.05. The disclosure for this sale can be found here. Insiders have sold a total of 76,190 shares of company stock valued at $5,725,870 in the last ninety days. Insiders own 3.14% of the company’s stock.

A number of hedge funds have recently bought and sold shares of ELLI. First Interstate Bank purchased a new position in Ellie Mae during the 4th quarter valued at about $28,000. We Are One Seven LLC purchased a new position in shares of Ellie Mae during the fourth quarter worth about $75,000. Advisor Group Inc. grew its holdings in shares of Ellie Mae by 32.6% during the fourth quarter. Advisor Group Inc. now owns 2,108 shares of the software maker’s stock worth $132,000 after purchasing an additional 518 shares in the last quarter. Bank of Montreal Can grew its holdings in shares of Ellie Mae by 7.1% during the fourth quarter. Bank of Montreal Can now owns 2,271 shares of the software maker’s stock worth $143,000 after purchasing an additional 150 shares in the last quarter. Finally, Ffcm LLC grew its holdings in shares of Ellie Mae by 328.9% during the fourth quarter. Ffcm LLC now owns 2,329 shares of the software maker’s stock worth $146,000 after purchasing an additional 1,786 shares in the last quarter.

About Ellie Mae

Ellie Mae, Inc provides cloud-based platform for the mortgage finance industry in the United States. The company provides Encompass, a proprietary software solution that combines lead management; loan origination and processing; underwriting; preparation of mortgage applications, disclosure agreements, and closing documents; loan funding and closing; compliance with regulatory and investor requirements; and enterprise management.

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