Santander Consumer USA (SC) Receives a Hold from Oppenheimer

By Ryan Adsit

In a report released yesterday, Dominick Gabriele from Oppenheimer maintained a Hold rating on Santander Consumer USA (NYSE: SC). The company’s shares closed yesterday at $18.75.

Gabriele commented:

“SC reported stronger PPE and credit leading to EPS of $0.64 vs. our/cons $0.57E/ $0.58E. The consumer remains strong and SC’s 3Q18 presentation showed industry auto subprime delinquency/NCO rates trending down and to the right in 2018. Credit likely to remain a tailwind vs. current expectations and benign through 1H19. The pressure points building within the earnings model we see are around Chrysler penetration (some/limited in our view) and if loan growth can reaccelerate (possible with mix in/out of Chrysler). Modest yield expansion can continue if a push to used comes to fruition and competitive pressures don’t eat away rate hike benefits. Also consensus is modeling Bluestem’s expense drag diminishing in 2019; depending on sale EPS could be much higher/lower than currently modeled.”

According to, Gabriele is a 1-star analyst with an average return of -4.0% and a 14.3% success rate. Gabriele covers the Financial sector, focusing on stocks such as Credit Acceptance Corp, Capital One Financial, and Synchrony Financial.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Santander Consumer USA with a $25.50 average price target.

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Based on Santander Consumer USA’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $335 million. In comparison, last year the company had a net profit of $199 million.

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Santander Consumer USA Holdings, Inc. engages in the provision of consumer financing services. It offers retail installment contracts, vehicle leases, dealer loans, financial products, and services related to motorcycles, recreational vehicles, and marine vehicles. The company was founded in July 2013 and is headquartered in Dallas, TX.