Legal General Group Stock Buy Hold or Sell Recommendation

LGGNY Stock  USD 16.29  0.08  0.49%   
Assuming the 90 days horizon and your way above-average risk tolerance, our recommendation regarding Legal General Group is 'Strong Hold'. Macroaxis provides Legal General buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding LGGNY positions. The advice algorithm takes into account all of Legal General's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Legal General's buy or sell advice are summarized below:
Real Value
15.97
Hype Value
16.29
Market Value
16.29
Naive Value
16.08
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Legal General Group given historical horizon and risk tolerance towards Legal General. When Macroaxis issues a 'buy' or 'sell' recommendation for Legal General Group, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Legal General Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
In addition, we conduct extensive research on individual companies such as Legal and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Legal General Group. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors.

Execute Legal General Buy or Sell Advice

The Legal recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Legal General Group. Macroaxis does not own or have any residual interests in Legal General Group or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Legal General's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Legal GeneralBuy Legal General
Strong Hold

Market Performance

Very WeakDetails

Volatility

Very steadyDetails

Hype Condition

StaleDetails

Current Valuation

Fairly ValuedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Almost mirrors the marketDetails

Analyst Consensus

Not AvailableDetails

Reporting Quality (M-Score)

InapplicableDetails
For the selected time horizon Legal General Group has a Risk Adjusted Performance of 0.0087, Jensen Alpha of (0.14), Total Risk Alpha of (0.29), Sortino Ratio of (0.08) and Treynor Ratio of (0)
Our investment recommendation tool can cross-verify current analyst consensus on Legal General Group and to analyze the entity potential to grow in the current economic cycle. To make sure Legal General Group is not overpriced, please verify all Legal General Group fundamentals, including its total debt, and the relationship between the revenue and target price . Given that Legal General Group has a price to book of 1.34 X, we recommend you to check Legal General market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your last-minute risk tolerance and investing horizon.

Legal General Trading Alerts and Improvement Suggestions

The company has accumulated 5.14 B in total debt with debt to equity ratio (D/E) of 4.52, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Legal General Group has a current ratio of 0.88, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Legal General until it has trouble settling it off, either with new capital or with free cash flow. So, Legal General's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Legal General Group sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Legal to invest in growth at high rates of return. When we think about Legal General's use of debt, we should always consider it together with cash and equity.
Legal General Group has accumulated about 24.77 B in cash with (169 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 20.92, which can makes it an attractive takeover target, given it will continue generating positive cash flow.
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Legal General Returns Distribution Density

The distribution of Legal General's historical returns is an attempt to chart the uncertainty of Legal General's future price movements. The chart of the probability distribution of Legal General daily returns describes the distribution of returns around its average expected value. We use Legal General Group price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Legal General returns is essential to provide solid investment advice for Legal General.
Mean Return
0.01
Value At Risk
-2.34
Potential Upside
1.93
Standard Deviation
1.27
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Legal General historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Legal General Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Legal General or Financial Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Legal General's price will be affected by overall pink sheet market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Legal pink sheet's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.14
β
Beta against NYSE Composite1.10
σ
Overall volatility
1.28
Ir
Information ratio -0.1

Legal General Volatility Alert

Legal General Group has relatively low volatility with skewness of -0.43 and kurtosis of 0.58. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Legal General's pink sheet risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Legal General's pink sheet price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Legal General Fundamentals Vs Peers

Comparing Legal General's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Legal General's direct or indirect competition across all of the common fundamentals between Legal General and the related equities. This way, we can detect undervalued stocks with similar characteristics as Legal General or determine the pink sheets which would be an excellent addition to an existing portfolio. Peer analysis of Legal General's fundamental indicators could also be used in its relative valuation, which is a method of valuing Legal General by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Legal General to competition
FundamentalsLegal GeneralPeer Average
Return On Equity0.19-0.31
Return On Asset0.0034-0.14
Operating Margin(120.08) %(5.51) %
Current Valuation(4.65 B)16.62 B
Shares Outstanding1.19 B571.82 M
Shares Owned By Institutions0.01 %39.21 %
Price To Earning8.88 X28.72 X
Price To Book1.34 X9.51 X
Price To Sales2.05 X11.42 X
Revenue45.45 B9.43 B
Gross Profit4.44 B27.38 B
EBITDA3.14 B3.9 B
Net Income2.05 B570.98 M
Cash And Equivalents24.77 B2.7 B
Cash Per Share20.92 X5.01 X
Total Debt5.14 B5.32 B
Debt To Equity4.52 %48.70 %
Current Ratio0.90 X2.16 X
Book Value Per Share9.86 X1.93 K
Cash Flow From Operations(169 M)971.22 M
Earnings Per Share2.06 X3.12 X
Target Price21.0
Number Of Employees10.74 K18.84 K
Beta1.38-0.15
Market Capitalization18.82 B19.03 B
Total Asset582.64 B29.47 B
Z Score1.88.72
Annual Yield0.07 %
Five Year Return6.60 %
Net Asset582.64 B
Last Dividend Paid0.19

Legal General Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Legal . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Legal General Buy or Sell Advice

When is the right time to buy or sell Legal General Group? Buying financial instruments such as Legal Pink Sheet isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Legal General in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Airlines
Airlines Theme
Domestic and international airlines and airline services. The Airlines theme has 38 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Airlines Theme or any other thematic opportunities.
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Check out Legal General Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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Please note, there is a significant difference between Legal General's value and its price as these two are different measures arrived at by different means. Investors typically determine if Legal General is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Legal General's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.