Shares of online mortgage provider Mortgage.com (Nasdaq: MDCM) soared more than 11.5 percent on Wednesday, gaining 1-13/16 to 17-1/2. Mortgage.com benefited from a strong buy rating and a $28 price target from U.S. Bancorp Piper Jaffray, which was a co-manager for the company’s recent initial public offering. One day earlier, Mortgage.com received a buy rating from Credit Suisse First Boston, which was the lead underwriter of the company’s IPO.
Mortgage.com stock has performed well after a lackluster debut last month. The company offered 7.06 million shares at $8 after originally intending to offer 7.5 million shares at a price range of $10 to $12. The stock closed its first day of trading on August 12 down 27/32 to 7-5/32. The stock has more than doubled since then, and things may be looking up. The recent decision to raise interest rates by the Federal Reserve could help mortgage companies like Mortgage.com.