Ellie Shares Moving to Big Board

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MORTGAGE EXPERT
5 · 31 · 12

With its share price more than doubling since debuting a year ago, Ellie Mae Inc. has decided to move trading of its shares to the Big Board.

The Pleasanton, Calif.-based company priced its April 2011 initial public offering at $6 per share. The price quickly shot up more than 10 percent.

Ellie, which says that nearly one-in-three new mortgages were originated last year using its software, has benefited from a sharp decline in mortgage rates and a corresponding increase in expected originations. Its technology includes a loan origination system and transaction platform.

At the time of the IPO, the 30-year mortgage was around 4.91 percent, according to secondary lender Freddie Mac.

Today’s report from Freddie indicated that the 30-year has fallen to an all-time low of 3.75 percent.

Falling rates prompted the Mortgage Bankers Association this month to boost its forecast for 2012 residential originations to $1.279 trillion compared to just $0.907 trillion predicted by the trade group as of October 2011.

The improving outlook has shown up in Ellie’s earnings, which swung from a first-quarter 2011 net loss of $0.3 million to a first-quarter 2012 profit of $4.6 million.

Shares of Ellie, a Mortgage Daily advertiser, now trade north of $16.

The company’s strong performance is being followed up with a planned move of its common stock listing from the NYSE MKT to the New York Stock Exchange, according to an announcement Thursday.

Ellie Chief Executive Officer Sig Anderman called the move to the NYSE “an important milestone in our progress as a public company.”

Shares are expected to begin trading on the Big Board under the symbol ELLI around June 5.

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Mortgage Daily Staff

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