LendingTree Stock Gets Upgraded After Sell-Off

Most TREE analysts are already bullish

LendingTree Inc (NASDAQ:TREE) shares have been trying to recover from their hugesell-off from earlier this month. Call buying has been the preferred strategy from TREE speculators in recent weeks, based on the 10-day call/put volume ratio of 1.26 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), and now some analysts are weighing in bullishly, as well.

Compass Point this morning upgraded its view on the shares to "buy" from "neutral," which matches the general opinion on the Street. Coming into today, seven of the 12 covering brokerage firms had "strong buy" ratings on the loan specialist. What's more, the average 12-month price target is up at $357, a roughly 20% premium to today's price of $298.96.

While TREE stock is up 1.5% today, it quickly gave up the $300 level earlier, a round-number region that's acted as a ceiling since the company's 2020 outlook pressured the shares in mid-December. This $300 level previously acted as a floor in August and October. From a broader view, LendingTree may have been due for a pop on the charts, given its 14-day Relative Strength Index (RSI) was near oversold territory at 33.