On Deck Capital Inc., the online small-business lender, fell the most since going public in December after lowering its full-year earnings forecast.
On Deck tumbled 21 percent to $10.54 at 2:01 p.m. in New York, the worst performance in the 468-company Russell 2000 Financial Services Index. The shares have declined 47 percent since the company’s initial public offering last year.
Second-quarter profit excluding some items was 10 cents a share, the New York-based firm said Monday in a statement, topping by 2 cents the average estimate of 15 analysts surveyed by Bloomberg. The company lowered its 2015 revenue forecast to $244 million to $248 million from $257 million to $261 million, citing tough competition among online lenders.
“While revenue growth remains meaningful and loan sale activity has picked up, originations, yields and customer acquisition costs are all trending in the wrong direction,” Michael Tarkan, a Compass Point LLC analyst, said in a note to investors. He lowered his target price to $10 from $12.
(An earlier version of this story was corrected to remove a reference to conference-call questions.)