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The latest announcement is out from Velocity Financial ( (VEL) ).
On January 28, 2026, Velocity Financial’s subsidiary Velocity Commercial Capital, LLC entered into a purchase agreement to issue $500 million of 9.375% senior notes due 2031 in a private offering to qualified institutional buyers and certain non-U.S. investors, with closing expected on or about January 30, 2026. The company plans to use about $222.7 million of the roughly $487 million in expected net proceeds to redeem its existing 7.125% senior secured notes due 2027 and to allocate the remainder to general corporate purposes, including potential debt repayment on warehouse and revolving facilities and up to $75 million for a possible acquisition, a move that would refinance nearer-term obligations while providing capital for balance-sheet flexibility and potential expansion.
The most recent analyst rating on (VEL) stock is a Buy with a $21.50 price target. To see the full list of analyst forecasts on Velocity Financial stock, see the VEL Stock Forecast page.
Spark’s Take on VEL Stock
According to Spark, TipRanks’ AI Analyst, VEL is a Outperform.
The score is driven by attractive valuation (low P/E) and strong recent operating momentum highlighted on the earnings call (record earnings, strong origination/portfolio growth, stable NIM). The main offset is balance-sheet risk from high leverage and some reported data inconsistencies, while technicals are supportive but only moderately strong.
To see Spark’s full report on VEL stock, click here.
More about Velocity Financial
Based in Westlake Village, California, Velocity Financial, Inc. is a vertically integrated real estate finance company that primarily originates and manages business-purpose loans secured by 1-4 unit residential rental and small commercial properties, lending nationwide through a long-established network of independent mortgage brokers.
Average Trading Volume: 91,744
Technical Sentiment Signal: Strong Buy
Current Market Cap: $783.8M
See more insights into VEL stock on TipRanks’ Stock Analysis page.