Leon Cooperman buys Finance of America (FOA) stock worth $1.1m

Leon Cooperman, a 10% owner of Finance of America Companies Inc. (NYSE:FOA), significantly increased his stake by purchasing over $1.1 million in Class A Common Stock between May and August 2025, and via Omega Capital Partners, acquired $15 million in convertible notes. These substantial insider investments, made at prices ranging from $20.90 to $22.53, accompany FOA's strong Q2 2025 financial results, a 230.8% annual return, and a low P/E of 2.9, reinforcing InvestingPro's assessment of undervaluation and the company's strategic dual listing on NYSE Texas.

Analysis

Finance of America Companies (FOA) is exhibiting multiple strong bullish signals, led by significant insider buying from 10% owner Leon Cooperman. Between May and August 2025, Cooperman and associated entities acquired over $1.1 million in common stock at prices ranging from $20.90 to $22.53, and separately purchased $15 million in convertible notes with a conversion price of $19.00 per share. These transactions occurred well below the stock's current trading price of $26.10, indicating strong internal conviction in the company's value. This confidence is supported by robust fundamentals, including strong Q2 2025 financial results that showed growth in net income and funded volume. Despite the stock's impressive 230.8% return over the past year, its valuation appears compelling with a P/E ratio of just 2.9 for the $649 million market-cap company. Strategic initiatives, such as a dual listing on NYSE Texas to broaden trading platforms and advancements in digital innovation, further underscore a proactive management approach aimed at strengthening market presence.

Key Decisions for Investors

• Investors should view the substantial insider share purchases and convertible note acquisition by a 10% owner at prices significantly below the current market level as a strong bullish signal.
• Despite a 230.8% one-year rally, the company's low P/E ratio of 2.9, coupled with strong Q2 earnings growth, suggests that FOA may still be fundamentally undervalued and warrants further due diligence.
• Monitor the company's execution on its strategic initiatives, such as the dual listing and digital innovation, as their successful implementation could serve as further catalysts for performance.
• Consider the potential for future share dilution from the 789,473 shares underlying the convertible notes, although the conversion price of $19.00 and ownership cap provide some structural definition.