LendingTree shares have been unusually volatile this week, gaining 19% Monday, then slipping back about 4% Tuesday. Requests for comment from the company haven’t sparked a response.
But Zachs Equity Research ties the surge to a Jan. 25 11th Circuit Court ruling in the Charlotte-based company’s favor in a dispute over a proposed Federal Communications Commission ruling. The “Trump effect” of likely limited regulation of financial services companies may also be a factor.
The FCC wanted to require lead generators like LendingTree to obtain “one-to-one” consent before contacting consumers. The move posed a challenge to LendingTree’s model of connecting financial services companies to consumers seeking loans for homes, cars and other purchases.
But the federal court ruled that was an overstep by the FCC, Zachs reports. Also, the Trump Administration issued a 12-month stay before the court decision, it said.
“Given the current administration, TREE believes this issue won’t likely come up again and that all uncertainty should be eliminated moving forward,” Yahoo Finance says.
LendingTree CEO Doug Lebda co-founded the business in 1996 and is considered one of Charlotte’s leading tech executives. He has retained a major ownership stake through various turns in the company’s fortunes.
Shares of LendingTree closed Tuesday at $46.64, down about 5.4%. They have traded between $28.50 and $62.50 in the past year. The market valuation is about $630 million.
