Home Point Capital Inc.
|Company Name||Home Point Capital Inc.|
|Class Period||January 29, 2021 to January 29, 2021|
|Lead Plaintiff Motion Deadline||August 20, 2021|
In January 2021, Home Point conducted its IPO, selling 7.25 million shares of common stock for $13.00 per share.
On May 6, 2021, Home Point announced financial results for the first quarter of 2021, reporting revenue of $324.2 million, which missed consensus estimates by $41.72 million.
On this news, Home Point's stock price fell $1.66, or 17.7%, to close at $7.72 per share on May 6, 2021, significantly below the IPO price.
The complaint filed alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Home Point’s aggressive expansion of its broker partners would increase the Company’s expenses dramatically; (2) as a result of rising interest rates in 2021, the mortgage industry was anticipating decreased gain-on-sale margins industry-wide, and Home Point would be subject to the same competitive pressures; (3) accordingly, Home Point had overstated its business and financial prospects; and (4) as a result, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
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