Analyzing year-to-date share movement, 1st Franklin Finance has outperformed the small-cap finance index by 2.8%. This relative strength is attracting momentum traders looking for steady plays in lending-focused companies. Ready Capital’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. On January 10, 2023, 1st Franklin sent out data breach letters to all individuals whose information was compromised as a result of the recent data security incident. Long-term modeling indicates that 1st Franklin Finance’s earnings could grow at a CAGR of 5% over the next three years, assuming stable regulatory conditions and moderate interest rate movements.
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