VELOCITY FINANCIAL INC (VEL)
Financials · specialized real estate finance · NYSE
Velocity Financial is a specialized real estate finance company focused on originating and managing business-purpose loans for residential rental and commercial properties.
What VELOCITY FINANCIAL INC does
Velocity Financial is a vertically integrated real estate finance company that originates, manages, and securitizes investor loans secured by 1-4 unit residential rental, multi-family, and commercial properties. The company leverages a network of mortgage brokers to provide financing across the United States, funding its portfolio primarily through securitized debt, warehouse facilities, and corporate debt. Through its Century Health & Housing Capital subsidiary, it also provides government-insured FHA mortgage financing for multi-family, senior housing, and assisted living facilities.
Recent developments
In the second quarter of 2026, the company completed a securitization of nonperforming mortgage loans and continued its regular securitization activities for investor real estate loans. The company also issued $500 million in Senior Notes in January 2026, which were used to pay off existing corporate debt.
From VELOCITY FINANCIAL INC's filing of 2026-08-06.
Themes: business purpose lending, securitization, residential rental investment, commercial real estate finance, mortgage servicing
Fundamentals
- Price$14.91 as of 2026-10-08 close
- Market cap$589M as of 2026-07-31 (share count; price 2026-10-08)
- 1-year return-17.8% 2025-10-08 close $18.13 → 2026-10-08 close $14.91
- P/E5.33 as of 2026-10-08
- ROE+15.6% FY2025, SEC XBRL
- Debt / equity9.69 as of 2026-09-02
- Revenue growth (YoY)+18.0% as of 2026-09-02
- Beta0.36 as of 2026-09-02
- Last reported earnings2026-08-05 SEC EDGAR Form 8-K (Item 2.02)
How VEL compares in its sector
- price-to-earnings ratiobottom 10% 513 covered Financials peers, as of 2026-10-08
- return on equitytop 25% 559 covered Financials peers, as of 2026-09-02
- free cash flow (absolute dollars, latest fiscal year)bottom 25% 430 covered Financials peers, as of FY2025
Position among covered Financials companies that report each metric (minimum 5 peers). A relative position within our covered catalog — not a valuation, quality, or investment judgment. A higher percentile is simply a higher value (for P/E, more expensive on earnings — never "better"). Informational only.
How VELOCITY FINANCIAL INC looks technically
VELOCITY FINANCIAL INC (VEL) is trading 17.9% below its 200-day average, the long-term trend line — a long-term downtrend. Its 50-day average crossed below its 200-day average about 119 trading days ago — a "death cross", a bearish long-term signal. A strong downtrend is in place — ADX, a 0–100 trend-strength gauge, is 48, with sellers in control. Momentum is beaten down — its 14-day RSI (a 0–100 momentum gauge) is 29, in oversold territory (below 30). It made a new 20-day low about 5 trading days ago. It is 30.3% below its highest point of the past year.
Trend
8
| Distance from the 200-day | it is trading 17.9% below its 200-day average, the long-term trend line — a long-term downtrend | -17.9% |
|---|---|---|
| 50-day moving average | its average price over the last 50 trading days — a short-term trend line — is $17.11 | $17.11 |
| 200-day moving average | its average price over the last 200 trading days — the long-term trend line — is $18.16 | $18.16 |
| Swing structure | each recent peak has been lower than the one before it and each dip deeper — the pattern chart-watchers call a downtrend, which describes where price has already been and not where it goes next | lower highs and lower lows |
| Last swing turn | its last significant turn was a swing low 7 calendar days ago — the swings before that are what the structure reading is measured on | 7 sessions |
| Wave structure | its recent swings can be read as a five-part downward sequence — what Elliott-wave chartists call an impulse — now in the fourth leg, a pullback against that downward direction; the labelling fails if price closes above 17.62. It is one of several labellings that fit, and it describes the swings already printed, not what comes next. The same swings also read as a completed three-part correction. | possible downward five-wave sequence, in wave 4 (one of several readings) |
| Since the 50/200 cross | its 50-day average crossed below its 200-day average about 119 trading days ago — a "death cross", a bearish long-term signal | 119 sessions |
| Trend strength (14-day ADX) | a strong downtrend is in place — ADX, a 0–100 trend-strength gauge, is 48, with sellers in control | 47.5 |
Momentum
3
| 14-day RSI | momentum is beaten down — its 14-day RSI (a 0–100 momentum gauge) is 29, in oversold territory (below 30) | 28.9 |
|---|---|---|
| Position in its 14-day range | it is trading in the lower half of its 14-day range ($14.18 to $16.40) — its "stochastic" reading is 33 out of 100, where 0 would mean closing exactly at the 14-session low and 100 exactly at the high. This measures WHERE the price sits inside its recent range, which is a different question from the RSI beside it: RSI is a momentum gauge, measuring how FAST the price has been moving, so a stock can drift quietly to the bottom of its range with an ordinary RSI, or fall sharply and still sit in the middle. It has been climbing within that range over the last few sessions. | 32.9 |
| Since the MACD crossed zero | MACD, a trend-momentum gauge, is in negative territory (momentum leaning bearish) | 22 sessions |
Range
12
| 52-week high | its highest closing price over the past year (about 252 trading days) was $21.39 | $21.39 |
|---|---|---|
| From the 52-week high | it is 30.3% below its 52-week high (its highest price of the past year) | -30.3% |
| Above the 52-week low | it is 5.1% above its 52-week low (its lowest price of the past year) | +5.2% |
| Below the 52-week high | it is 30.3% below its highest point of the past year | 30.3% |
| Since a 20-day breakout | it made a new 20-day low about 5 trading days ago | 5 sessions |
| Since a 55-day breakout | it made a new 55-day low about 5 trading days ago | 5 sessions |
| All-time high | its highest closing price on record is $21.39 (set on 2026-01-02) | $21.39 |
| Given back of the 52-week move | over the past year its closes ranged ($14.59 to $20.76), and it has recovered only a small part of its fall from last year’s high — 5% of it. Chart-watchers call 61.8%-65% given back the "golden pocket" — for this company that is $18.40 to $18.60. It is watched widely enough that orders cluster there, which is the honest reason it matters; it is not a forecast. | 5.2% |
| From the all-time high | it is 30.3% below its all-time high | -30.3% |
| Nearest price level | it is trading 8.7% below a resistance level at $16.21 — a price it turned at four times since 2025-04-11, most recently on 2025-08-01. Since 2024-10-08 it has 0 such levels below the current price and 8 above. Levels like these describe where the price has reversed or paused before; they are not a forecast of where it will go. | +8.7% |
| All-time low | its lowest closing price on record is $2.24 (set on 2020-04-03) | $2.24 |
| Above the all-time low | it is 565.6% above its all-time low | +565.6% |
Volatility
5
| Band width vs its own 6 months | day-to-day price swings are unusually wide versus its own recent history (wider than about 92% of the past ~6 months) | 92nd percentile |
|---|---|---|
| Typical daily range | in a typical session it travels about $0.4957 between its high and its low — about 3.3% of its price. That is its "average true range" over the last 14 sessions, which also counts the distance from the previous close, so a day that opens well away from yesterday counts as the large move it was | $0.4957 |
| Bollinger bands (20-day, ±2σ) | most of its recent trading has stayed between about $13.77 and $17.61 — the "Bollinger bands", a range drawn two standard deviations either side of its 20-day average price, which widens when the stock gets more volatile and narrows when it settles | $13.77 – $15.69 – $17.61 |
| Typical daily range (% of price) | its price moves about 3.3% in a typical session — about typical for the companies we cover. This is the average gap between a session's high and low over the last 14 sessions, counting overnight moves, expressed against the current price so it can be compared with companies trading at any price | 3.3% |
| Stretch from the 200-day average | it is trading 6.6 daily ranges below its 200-day average price (17.9% below it in plain percentage terms) — a way of asking how far it has stretched from its own average in units of how far it normally moves in a day, so a calm company and a jumpy one can be compared on the same scale | 6.6 daily ranges below its 200-day average |
Volume
1
| Volume vs its 30-day average | trading volume is about normal versus its 30-day average | 1.12× |
|---|
Analyst
2
| Change in the average price target | analysts' average price target is unchanged from the prior reading | 0.0% |
|---|---|---|
| Change in the consensus rating | not available for this company yet | n/a |
Price gaps
1
| Gap at the open | it opened on 2026-10-08 0.3% below the previous session's close — an overnight gap, the part of the move that happened while the market was shut, and traded back through that level before the close | -0.3% |
|---|
Price streaks
1
| Closing streak | it closed higher in its latest session, after a session that did not close higher — a single up day rather than a run | 1 session up |
|---|
Relative strength
4
| vs market, 1 month | over the past 1 month this stock lagged the market by 18.8 percentage points (the stock lost 17.7% while the market gained 1.0%) | -18.8% |
|---|---|---|
| vs market, 3 months | over the past 3 months this stock lagged the market by 18.7 percentage points (the stock lost 14.8% while the market gained 3.8%) | -18.7% |
| vs market, 6 months | over the past 6 months this stock lagged the market by 36.7 percentage points (the stock lost 19.3% while the market gained 17.5%) | -36.7% |
| vs market, 12 months | over the past 12 months this stock lagged the market by 32.7 percentage points (the stock lost 17.8% while the market gained 15.0%) | -32.7% |
Signal agreement
2
| Bullish technical signals | 1 of the 9 technical signals we can compute for it is currently in a bullish state: its RSI momentum gauge is oversold (a beaten-down reading) — these describe past price behaviour, not a forecast | 1 of 9 |
|---|---|---|
| Bearish technical signals | 6 of the 9 technical signals we can compute for it are currently in a bearish state: a "death cross" — its 50-day average is below its 200-day, trading below its 200-day average, MACD momentum is negative, a strong downtrend, with sellers in control, lagging the market over 6 months, trading below the Ichimoku cloud — these describe past price behaviour, not a forecast | 6 of 9 |
Trend (Ichimoku cloud)
1
| Vs the Ichimoku cloud | trading 18% below the Ichimoku cloud — a band drawn from where its own highs and lows sat up to 2026-09-01 and projected forward over today's price, the side traders read as an established downtrend, with the band above acting as the level that would have to be cleared. The band itself is thin, spanning 1.2% of the share price, which is taken to mean a barrier that gives way easily. | -17.6% |
|---|
Volume-weighted price
2
| Vs this year’s average price paid | the price is 16% below the average price paid so far this year, so the typical buyer over that stretch is under water. That average is $17.84 — a volume-weighted average of daily closes over 190 sessions, not a true tick-by-tick VWAP. | -16.4% |
|---|---|---|
| Vs the average paid since it last reported | the price is 10% below the average price paid since it last reported on 2026-08-05 (its 8-K), so the typical buyer over that stretch is under water. That average is $16.63 — a volume-weighted average of daily closes over 46 sessions, not a true tick-by-tick VWAP. | -10.3% |
Double top, bearish — broke down · entry $17.15 · 69 sessions in
Price levels it has turned at before
VEL last closed at $14.91 on 2026-10-08. Since 2024-10-08 it has turned at 0 prices below its last close and 8 above; the 3 nearest above are listed, nearest first.
| Level | Side | Distance | Evidence |
|---|---|---|---|
| $16.21 | Resistance | 8.7% above the last close | turned there four times · 2025-04-11 to 2025-08-01 |
| $17.02 | Resistance | 14.2% above the last close | turned there four times · 2026-03-18 to 2026-07-23 |
| $17.89 | Resistance | 20.0% above the last close | turned there 13 times · 2024-10-21 to 2026-08-26 |
A level is a price this company reversed or paused at more than once — they describe past behaviour, not a forecast of where the price will go.
Wave structure
Its recent swings can be read as a five-part downward sequence — what Elliott-wave chartists call an impulse — now in leg 4 of five, a pullback against that direction.
This labelling fails — stops being a possible reading at all — if it closes above $17.62.
This is one of several labellings that fit the same swings, so treat it as a reading rather than the reading. It was chosen from 2 labellings that survived the rules, counting shorter readings of the same bars.
On past moves of this shape the leg has usually ended somewhere between $15.22 and $16.39 — that is where it has tended to end if the count holds, not a forecast of where the price goes.
Alternate reading: The same swings also read as a completed three-part correction, which fails on a close below $14.18.
This reading has stood for 1 trading day, since 2026-10-08.
Read from daily closes as of 2026-10-08.
An Elliott-wave count describes the swings already printed and the level that would disprove it. It is not a forecast, a target, or advice.
Screens: Trading below the 200-day moving average · Oversold (14-day RSI below 30) · Pulled back from the 12-month high · lagging the market · Stretched far below its 200-day average (6+ daily ranges) · Under water since its last earnings report (below the anchored VWAP) | Learn: moving average · golden cross · adx · rsi · breakout · fifty two week high low
Based on daily closing prices as of 2026-10-08. Describes past price behavior only — informational, not financial advice.
Analyst consensus
- Consensus ratingHold (2.67 mean, 1=Strong Buy…5=Strong Sell) — 3 analysts
- Mean price target$21.50 range $19.00 – $23.50; median $22.00
Analyst estimates, as of 2026-10-07. These are third-party analyst opinions and price targets, aggregated — not a recommendation, prediction, or advice from stocks-llm. Informational only.
Analyst EPS estimate for VEL
- Consensus EPS estimate$0.7133 next reporting period, as of 2026-10-07
- Estimate change, 30 days$0.00 (0.0%) from $0.7133, on 2026-09-01, 36-day window
- Readings revised upward13% of 8 comparable readings
The consensus estimate for the next reporting period, and how it has moved between readings of that SAME period. A change is measured only between readings estimating one period — when a company reports, the consensus moves to the next quarter and the two numbers are not comparable. Informational only, not a forecast and not advice.
Key risks (from latest filing)
["exposure to interest rate volatility and potential increases in cost of funds","credit risk associated with non-performing loans in the real estate portfolio","dependence on the securitized debt market for long-term, non-recourse financing"]
What changed in the latest 10-Q
AI-assisted comparison of VEL's 10-Q filed 2026-05-07 against the prior one filed 2025-11-07.
Management's Discussion & Analysis (MD&A)
- Added:
- Added disclosure of 22 years since inception (newer: 2026-05-07) vs. 21 years (older: 2025-11-07)
- Added statement that company 'originate[s], securitize[s], and manage[s]' portfolio (newer: 2026-05-07)
- Added reference to 'loans for multi-family, mixed use and commercial properties' in addition to investor 1-4 loans (newer: 2026-05-07)
- Added specific securitization transactions completed in February and March 2026 totaling $545.1 million UPB (newer: 2026-05-07)
- Added Corporate Debt subsection detailing January 2026 issuance of $500 million 9.375% Senior Notes and payoff of $215 million 2022 Term Loan (newer: 2026-05-07)
- Added 'unsecured and secured debt' to funding sources description (newer: 2026-05-07)
- Added mention of 'unsecured debt' to portfolio-related debt exclusion language (newer: 2026-05-07)
- Removed:
- Removed reference to 'corporate debt' from funding sources list, now listed separately (older: 2025-11-07)
- Removed comparative nine-month financial metrics for Q3 2025 (older: 2025-11-07)
- Removed year-to-date comparison data showing pre-tax income of $96.2 million and net income of $70.2 million for nine months ended September 30, 2025 (older: 2025-11-07)
- Removed 'particularly within our network of mortgage brokers' from objective statement (older: 2025-11-07)
- Reworded:
- Changed reference year from 'December 31, 2024' to 'December 31, 2025' in opening sentence (newer: 2026-05-07)
- Changed portfolio date from 'September 30, 2025' to 'March 31, 2026' throughout (newer: 2026-05-07)
- Changed average loan balance from '$393 thousand' to '$388 thousand' (newer: 2026-05-07)
- Changed total portfolio UPB from '$6.3 billion' to '$6.8 billion' (newer: 2026-05-07)
- Changed weighted average LTV from '65.5%' to '64.9%' (newer: 2026-05-07)
- Changed investor 1-4 loan percentage from '49.2%' to '46.9%' of UPB (newer: 2026-05-07)
- Changed annualized yield from '9.54%' (Q3 2025) to '9.23%' (Q1 2026) (newer: 2026-05-07)
- Changed number of securitized transactions from '44' to '48' (newer: 2026-05-07)
- Changed gross debt proceeds total from '$9.9 billion' to '$11.1 billion' (newer: 2026-05-07)
- Changed period reference from 'May 2011 through September 2025' to 'May 2011 through March 2026' (newer: 2026-05-07)
- Changed wording from 'We may also continue to sell loans' to 'We may also sell loans' (newer: 2026-05-07)
- Changed portfolio-related debt exclusion from 'excludes corporate debt' to 'excludes corporate debt and unsecured debt' (newer: 2026-05-07)
- Changed annualized portfolio related net interest margin from '3.65%' (Q3 2025) to '3.56%' (Q1 2026) (newer: 2026-05-07)
- Changed comparison margin from '3.60%' (Q3 2024) to '3.35%' (Q1 2025) (newer: 2026-05-07)
- Changed pre-tax income from '$35.4 million' (Q3 2025) to '$30.9 million' (Q1 2026) (newer: 2026-05-07)
- Changed net income from '$25.4 million' (Q3 2025) to '$22.4 million' (Q1 2026) (newer: 2026-05-07)
- Changed comparison pre-tax income from '$21.2 million' (Q3 2024) to '$26.9 million' (Q1 2025) (newer: 2026-05-07)
- Changed comparison net income from '$15.8 million' (Q3 2024) to '$18.9 million' (Q1 2025) (newer: 2026-05-07)
- Reordered Business section to state 'originate, securitize, and manage' before specifying loan types (newer: 2026-05-07)
- Notes:
- The newer filing covers Q1 2026 (ended March 31, 2026) while older filing covers Q3 2025 (ended September 30, 2025), making period-to-period comparisons reflect different quarters and fiscal years
- Text truncation at end of both filings prevents full comparison of 'Critical Accounting Policies' section
AI-assisted comparison of two SEC filing sections. It describes wording and theme changes only, makes no materiality, legal, or investment judgement, and is not financial advice. Informational only — not financial advice.
Insider activity (SEC Form 4)
0 open-market purchases and 8 open-market sales by insiders in the last 90 days, of which we have read Form 4 filings through 2026-10-04. The 5 days since 2026-10-04 have not been checked yet.
- Last 30 days · read to 2026-10-040 buys · 1 sell ($36060) — 1 selling insider
- Last 90 days · read to 2026-10-040 buys · 8 sells ($250318) — 4 selling insiders
- Last 180 days · read to 2026-10-040 buys · 14 sells ($423834) — 4 selling insiders
Activity heuristic: net selling (a transparent product heuristic from the counts above, not a prediction or advice)
Most recent open-market transaction: 2026-09-10. Based on Form 4 filings read through 2026-10-04; anything filed since is not yet included.
View full insider trading history → View SEC Form 3/4/5 filingsAsk about VEL's insider activity →
Only open-market purchases (SEC code P) and sales (code S) are counted here. Option exercises, vesting/awards, gifts, and shares withheld for taxes are excluded — they are compensation or mechanical, not open-market conviction. Sales may be planned and non-discretionary (e.g. a Rule 10b5-1 plan) and are not necessarily bearish; open-market buying is not a recommendation to buy. Informational only — not financial advice.
Institutional ownership (13F)
5 institutional 13F filers reported holding VEL as of 2026-06-30 (quarter-end position, filed within 45 days).
- Distinct 13F filers 5
- Reported shares held 1,906,115
- Reported value $35,186,873
reported quarterly holdings change (2026-03-31 → 2026-06-30): 0 new, 4 increased, 1 decreased, 0 exited. Change counts cover only managers that filed 13F reports in BOTH quarters, derived between two quarter-end snapshots — not same-day trades; a single manager is never said to have "bought" or "sold".
Institutional holdings are quarter-end long positions reported on SEC Form 13F-HR, filed up to 45 days after the quarter ends — they are delayed, are not real-time trades, exclude short positions and most non-US securities, and are not investment advice. Any increase/decrease is a reported change between two quarterly snapshots, not a same-day purchase or sale. These are quarter-end snapshots from the 13F filings on SEC EDGAR, filed within 45 days — not real-time, and any change is a difference between two quarterly reports, not a same-day trade. Informational only — not financial advice.
Ask about VEL's institutional holders → See what each manager we track holds →
Short interest (FINRA)
VEL had 1,559,486 shares of reported short interest as of the 2026-09-15 FINRA settlement date (delayed, bi-monthly; not real-time).
VEL had 3.95% of its shares outstanding sold short as of the 2026-09-15 FINRA settlement date (percent of FLOAT would be higher — float is not disclosed in the source). FINRA reported 12.98 days to cover at the same settlement.
- Reported short interest (shares) 1,559,486
- Short interest (% of shares outstanding) 3.95%
- Prior settlement (shares) 1,549,811
- Reported change 0.62%
- Days to cover (reported) 12.98
Reported to FINRA as of the 2026-09-15 settlement date. Short interest is reported to FINRA and published on a delayed, bi-monthly schedule (as of a settlement date, disseminated roughly eight business days later) — it is NOT real-time, does not cover every venue or all US trading, and is not a short-squeeze prediction or investment advice. Days-to-cover is the value FINRA reports; percent of float is not shown because the source file carries no share-count denominator — where a percent appears it is of shares OUTSTANDING, the larger base, and is therefore a floor on percent of float. Informational only — not financial advice.
Competitors & peers
- Redwood Trust (RWT)
- PennyMac Financial Services (PFSI)
- Newrez (NRZ)
- Ladder Capital (LADR)
- Arbor Realty Trust (ABR)
- Starwood Property Trust (STWD)
AI-enriched competitor set. Linked names are companies covered by stocks-llm; other named peers are shown for reference only.
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Frequently asked questions
What does VELOCITY FINANCIAL INC (VEL) do?
Velocity Financial is a vertically integrated real estate finance company that originates, manages, and securitizes investor loans secured by 1-4 unit residential rental, multi-family, and commercial properties. The company leverages a network of mortgage brokers to provide financing across the United States, funding its portfolio primarily through securitized debt, warehouse facilities, and corporate debt.
What sector is VELOCITY FINANCIAL INC (VEL) in?
VELOCITY FINANCIAL INC (VEL) is classified in the Financials sector. Its industry is specialized real estate finance. It trades on NYSE.
Who are VELOCITY FINANCIAL INC's (VEL) competitors?
Notable peers of VELOCITY FINANCIAL INC (VEL) include Redwood Trust, PennyMac Financial Services, Newrez, Ladder Capital and Arbor Realty Trust. This peer set is informational only — not financial advice.
Is VELOCITY FINANCIAL INC (VEL) overbought or oversold right now?
VELOCITY FINANCIAL INC (VEL) is currently in oversold territory (its 14-day RSI is 29, below 30) (as of 2026-10-08). RSI describes recent price momentum, not a forecast — informational only, not financial advice.
Where does stocks-llm's data on VEL come from?
Fundamentals come from SEC XBRL company filings for the figures marked with a fiscal year, and market data, as of 2026-09-02 for the rest; prices are market data, as of 2026-09-02; company filings and profile facts come from SEC EDGAR. All figures are delayed daily-close data shown with their as-of date — informational only, not financial advice.
Fundamentals: SEC XBRL company filings for the figures marked with a fiscal year, and market data, as of 2026-09-02 for the rest. Filings: SEC EDGAR. Prices are delayed daily-close data.
Last updated 2026-10-08.
Informational only — NOT financial advice. All figures are delayed daily-close data from SEC EDGAR & market data, shown with their as-of date.