
COOP Stock Forecast & Price Target
COOP Analyst Ratings
Bulls say
Mr. Cooper Group Inc. has demonstrated strong performance in its Direct-to-Consumer (DTC) channel, with a notable 117% year-over-year increase in origination volumes for the fourth quarter, contributing to total originations funded rising 36% quarter-over-quarter to $9.3 billion, indicating enhanced market share gains. The servicing portfolio also expanded significantly by 57% year-over-year to $1,556 billion, primarily driven by the recent Flagstar acquisition, which has bolstered the company's operational capabilities and asset management. Additionally, improved return on equity (ROE) guidance for 2025 and 2026 alongside expectations for lower servicing costs further support a positive outlook for Mr. Cooper Group's financial performance in the coming years.
Bears say
Mr. Cooper Group Inc. faces a negative outlook primarily due to a significant decline in its pull-through adjusted-lock gain-on-sale (GOS) origination margins, which fell to 1.19% from 1.68% sequentially, negatively impacting overall profitability despite growth in origination volume. Additionally, the company's refinancing recapture rate plummeted to 35% from 69%, raising concerns about the sustainability of its origination business in a potentially changing interest rate environment. Furthermore, the forward margin estimates have been revised downward to 125 bp/135 bp/140 bp for 2025-2027, reflecting a persistent shift towards lower-margin correspondent channels, which is expected to further pressure overall earnings and reduce return on equity projections.
This aggregate rating is based on analysts' research of Mr. Cooper Group Inc and is not a guaranteed prediction by Public.com or investment advice.
COOP Analyst Forecast & Price Prediction
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