Velocity Financial, Inc. (NYSE:VEL) reported a recent insider transaction involving its Chief Accounting Officer, Fiona Tam. On July 7, 2026, Ms. Tam sold 68 shares of the company's common stock. The transaction resulted in total proceeds of $1,292, with each share sold at a price of $19.00.
According to market data, the stock is currently trading at $17.54, which is below the price at which Ms. Tam executed her sale. The company's price-to-earnings (P/E) ratio stands at 6.28. Analysis from InvestingPro suggests that VEL may be undervalued at its current levels, noting that the stock trades at a low P/E ratio relative to near-term earnings growth. This assessment places VEL on InvestingPro's list of undervalued stocks, highlighting key insights available to subscribers regarding potential valuation opportunities.
The sale was carried out under a Rule 10b5-1 trading plan, which Ms. Tam adopted on March 14, 2026. Following this transaction, Ms. Tam's direct holdings in Velocity Financial common stock total 48,361 shares.
In other recent developments, Velocity Financial reported its first-quarter 2026 earnings results, presenting a mixed financial picture. The company achieved revenue of $85.23 million, which significantly surpassed the forecast of $68.5 million. This performance marked a 24.42% surprise above expectations. However, the company's earnings per share (EPS) of $0.57 missed the expected $0.60, representing a 5% shortfall.
Following the release of these results, Citizens raised its price target for Velocity Financial to $23.50 from $22.00, while maintaining a Market Outperform rating. The firm cited the strong revenue performance as a key factor in its decision to adjust the target.
Additionally, Velocity Financial announced the appointment of Dean Thevaos as Chief Technology Officer. Mr. Thevaos is tasked with modernizing the company's platform and expanding its product capabilities. These appointments and financial results highlight the company's ongoing efforts to enhance its operational infrastructure.