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How to buy Velocity Financial stock | 5.88

Own Velocity Financial stock in just a few minutes.


Fact checked

Velocity Financial, Inc is a mortgage finance business based in the US. Velocity Financial shares (VEL) are listed on the NYSE and all prices are listed in US Dollars. Velocity Financial employs 262 staff and has a trailing 12-month revenue of around USD$66.4 million.

How to buy shares in Velocity Financial

  1. Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Velocity Financial. Find the stock by name or ticker symbol: VEL. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Velocity Financial reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At last close price of USD$5.88, weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of Velocity Financial, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Velocity Financial. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

How has coronavirus impacted Velocity Financial's share price?

Since the stock market crash in March caused by coronavirus, Velocity Financial's share price has had significant negative movement.

Its last market close was USD$5.88, which is 59.14% down on its pre-crash value of USD$14.39 and 94.06% up on the lowest point reached during the March crash when the shares fell as low as USD$3.03.

If you had bought USD$1,000 worth of Velocity Financial shares at the start of February 2020, those shares would have been worth USD$342.39 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth USD$420.30.

Velocity Financial share price

Use our graph to track the performance of VEL stocks over time.

Velocity Financial shares at a glance

Information last updated 2020-11-26.
Latest market close USD$5.88
52-week range USD$2.24 - USD$14.9
50-day moving average USD$5.0503
200-day moving average USD$4.4924
Wall St. target price USD$7.5
PE ratio 4.7519
Dividend yield N/A (0%)
Earnings per share (TTM) USD$123.827

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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

Is it a good time to buy Velocity Financial stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

Velocity Financial price performance over time

Historical closes compared with the close of $5.88 from 2020-11-16

1 week (2020-11-20) N/A
1 month (2020-10-30) 35.17%
3 months (2020-08-28) N/A
6 months (2020-05-28) N/A
1 year (2019-11-27) N/A
2 years (2018-11-27) N/A
3 years (2017-11-27) N/A
5 years (2015-11-27) N/A

Is Velocity Financial under- or over-valued?

Valuing Velocity Financial stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Velocity Financial's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Velocity Financial's P/E ratio

Velocity Financial's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 5x. In other words, Velocity Financial shares trade at around 5x recent earnings.

That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

Velocity Financial financials

Revenue TTM USD$66.4 million
Operating margin TTM 28.51%
Gross profit TTM USD$54.9 million
Return on assets TTM 0.64%
Return on equity TTM 5.94%
Profit margin 20.17%
Book value $1325.683
Market capitalisation USD$125.5 million

TTM: trailing 12 months

Shorting Velocity Financial shares

There are currently 476,193 Velocity Financial shares held short by investors – that's known as Velocity Financial's "short interest". This figure is 2.2% down from 487,039 last month.

There are a few different ways that this level of interest in shorting Velocity Financial shares can be evaluated.

Velocity Financial's "short interest ratio" (SIR)

Velocity Financial's "short interest ratio" (SIR) is the quantity of Velocity Financial shares currently shorted divided by the average quantity of Velocity Financial shares traded daily (recently around 38064.988009592). Velocity Financial's SIR currently stands at 12.51. In other words for every 100,000 Velocity Financial shares traded daily on the market, roughly 12510 shares are currently held short.

However Velocity Financial's short interest can also be evaluated against the total number of Velocity Financial shares, or, against the total number of tradable Velocity Financial shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Velocity Financial's short interest could be expressed as 0.02% of the outstanding shares (for every 100,000 Velocity Financial shares in existence, roughly 20 shares are currently held short) or 0.057% of the tradable shares (for every 100,000 tradable Velocity Financial shares, roughly 57 shares are currently held short).

A SIR above 10% would generally be considered pretty high, pointing to a potentially pessimistic outlook for the share price and a discouraging interest in betting against Velocity Financial.

Find out more about how you can short Velocity Financial stock.

Velocity Financial share dividends

We're not expecting Velocity Financial to pay a dividend over the next 12 months.

Velocity Financial overview

Velocity Financial, Inc. operates as a real estate finance company in the United States. The company primarily originates and manages investor loans secured by 1-4 unit residential rental and small commercial properties. It offers its products through a network of independent mortgage brokers. Velocity Financial, Inc. was founded in 2004 and is headquartered in Westlake Village, California.

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