LendingTree (NASDAQ:TREE) Shares Gap Up – Still a Buy?

LendingTree, Inc. (NASDAQ:TREE) shares gapped up before the market opened on Tuesday . The stock had previously closed at $37.74, but opened at $42.24. LendingTree shares last traded at $43.0850, with a volume of 319,846 shares.

LendingTree News Roundup

Here are the key news stories impacting LendingTree this week:

• Positive Sentiment: Quarterly revenue outperformed expectations and showed healthy year?over?year growth; the company reported consolidated revenue around $319.7M (press release) and revenue was cited up ~22% y/y in other summaries. This topline strength is the primary near?term positive catalyst. PR Newswire
• Positive Sentiment: Management issued above?consensus revenue guidance: FY2026 revenue centered near $1.3B (vs. Street ~ $1.2B) and Q1 2026 revenue guidance of $317M–$325M (vs. consensus ~ $276M). The stronger forward revenue guide is a major reason investors are upbeat.
• Positive Sentiment: Longer?term narrative: LendingTree said it has surpassed $1B in annual revenue and is “leaning into AI” for product/efficiency gains — this supports revenue durability and growth expectations. Charlotte Observer
• Neutral Sentiment: GAAP vs. adjusted results diverge: the company reported a large GAAP net income (driven by a $146.4M tax?benefit that reduced a valuation allowance) while adjusted net loss per share was $(0.39). This one?time accounting item clouds the profit signal and warrants investor scrutiny. PR Newswire
• Neutral Sentiment: Management commentary and earnings?call highlights emphasize “strong growth amid market challenges,” suggesting revenue momentum but also signalling cyclicality and margin pressure in some products. Yahoo Finance
• Negative Sentiment: Adjusted EPS missed expectations materially: adjusted loss per share $(0.39) versus consensus ~$0.90 — analysts flagged the earnings miss despite the revenue beat, which raises near?term profitability concerns. Zacks
• Negative Sentiment: Margins and adjusted EBITDA remain modest (Adjusted EBITDA reported ~$36.7M; net margin low on an adjusted basis), so investors will watch whether revenue growth translates into sustained profit recovery. MarketBeat

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on TREE shares. Weiss Ratings reiterated a “hold (c-)” rating on shares of LendingTree in a report on Monday, December 29th. Wall Street Zen lowered LendingTree from a “strong-buy” rating to a “buy” rating in a report on Monday, November 10th. Needham & Company LLC reduced their target price on LendingTree from $85.00 to $60.00 and set a “buy” rating for the company in a report on Tuesday. Truist Financial upped their target price on LendingTree from $62.00 to $72.00 and gave the stock a “buy” rating in a research report on Monday, November 3rd. Finally, Zacks Research cut shares of LendingTree from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, December 30th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $72.50.

LendingTree Trading Up 16.6%

The company has a debt-to-equity ratio of 2.93, a quick ratio of 1.43 and a current ratio of 1.43. The company’s 50 day moving average is $51.32 and its 200 day moving average is $57.64. The stock has a market capitalization of $601.48 million, a price-to-earnings ratio of 43.56 and a beta of 2.21.

LendingTree (NASDAQ:TREE) last posted its quarterly earnings results on Monday, March 2nd. The financial services provider reported ($0.39) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.90 by ($1.29). The company had revenue of $310.92 million during the quarter, compared to analyst estimates of $286.56 million. LendingTree had a return on equity of 36.30% and a net margin of 1.34%.The business’s revenue for the quarter was up 22.3% on a year-over-year basis. On average, research analysts forecast that LendingTree, Inc. will post 0.48 EPS for the current fiscal year.

Institutional Trading of LendingTree

Several institutional investors have recently modified their holdings of TREE. Farther Finance Advisors LLC lifted its position in LendingTree by 272.6% in the third quarter. Farther Finance Advisors LLC now owns 462 shares of the financial services provider’s stock worth $30,000 after purchasing an additional 338 shares during the period. Financial Management Professionals Inc. bought a new position in shares of LendingTree during the 4th quarter worth about $25,000. State of Alaska Department of Revenue bought a new position in shares of LendingTree during the 3rd quarter worth about $35,000. Fifth Third Bancorp acquired a new stake in shares of LendingTree during the 4th quarter valued at about $32,000. Finally, New York State Teachers Retirement System bought a new stake in LendingTree in the fourth quarter valued at about $54,000. Institutional investors and hedge funds own 68.26% of the company’s stock.

LendingTree Company Profile

LendingTree, Inc operates an online marketplace that connects consumers with a network of lenders and financial service providers. Through its platform, borrowers can compare loan offers for mortgages, home equity loans, personal loans, student loans, auto loans and small business financing. The company also offers tools for comparing credit cards and deposit accounts, allowing users to research rates and terms from a range of providers in one place.

Founded in 1996 by Doug Lebda, LendingTree pioneered the comparison-shopping model for consumer credit products.