LendingTree ascents 0.44 percent despite modest market dip

In this story I am going to address all LendingTree shareholders. I will look into why despite regular market tumult, the longer-term fundamental drivers of the firm are still sound. What is September 2019 outlook for LendingTree? LendingTree current daily volatility over market is very small. What is LendingTree Target Price Odds to finish over Current Price? Pertaining to normal probability distribution, the odds of LendingTree to move above current price in 30 days from now is close to 99%. The LendingTree probability density function shows the probability of LendingTree Stock to fall within a particular range of prices over 30 days . Given the investment horizon of 30 days, the stock has beta coefficient of 1.3134 . This entails as the benchmark fluctuates upward, the company is expected to outperform it on average . However, if the benchmark returns are expected to be negative, LendingTree will likely underperform. Additionally, the company has a negative alpha implying that the risk taken by holding this equity is not justified. LendingTree is significantly underperforming S&P 500.
Published over a year ago
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Reviewed by Rifka Kats

LendingTree currently holds 393.18M in liabilities with Debt to Equity (D/E) ratio of 105.1 indicating the stock may have difficulties to generate enough cash to satisfy its financial obligations. The firm dividends can provide a clue to current valuation of the stock. The entity is not expected to issue dividends this year as it trying to preserve or re-invest any of the funds available for distribution to stakeholders. Earning per share calculations of the firm is based on official Zacks consensus of 1 analysts regarding LendingTree future annual earnings. Given the historical accuracy of 84.73%, the future earnings per share of the company is estimated to be 3.8533 with lowest and highest values of 3.24 and 4.82 respectively. Please note that this consensus of annual earnings estimates for the entity is an estimate of EPS before non-recurring items and including employee stock options expenses.
Lendingtree financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Lendingtree, including all of Lendingtree's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Lendingtree assets, the company is considered highly leveraged. Understanding the composition and structure of overall Lendingtree debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Lendingtree Total Liabilities

Lendingtree liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Lendingtree has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Lendingtree balance sheet include debt obligations and money owed to different Lendingtree vendors, workers, and loan providers. Below is the chart of Lendingtree short long-term liabilities accounts currently reported on its balance sheet.
You can use Lendingtree financial leverage analysis tool to get a better grip on understanding its financial position

How important is Lendingtree's Liquidity

Lendingtree financial leverage refers to using borrowed capital as a funding source to finance Lendingtree ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Lendingtree financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Lendingtree's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Lendingtree's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Lendingtree's total debt and its cash.

What is driving Lendingtree Investor Appetite?

The recent LendingTree price drops has created some momentum for investors as it was traded today as low as 321.18 and as high as 329.9 per share. The company directors and management were unable to exploit market volatilities in July. However, diversifying your overall positions with LendingTree can protect your principal portfolio during market swings. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 3.1198. The above-average volatility is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from LendingTree partners. LendingTree reports 892 number of employees. LendingTree is selling at 323.97. That is 0.44 percent up. Today lowest is 321.18. LendingTree Operating Income is rather stable at the moment. Also, LendingTree Total Debt is rather stable at the moment.
 2013 2014 2015 2018 2019 (projected)
LendingTree Interest Expense 19,000  2,000  171,000  196,650  434,774 
LendingTree Gross Profit 132,698,000  159,447,000  244,846,000  281,572,900  728,470,000 
All in all, our analysis show that LendingTree Responds to market. The firm is undervalued and projects probability of distress low for the next 2 years. Our up-to-date buy or sell advice on the firm is Strong Hold.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Lendingtree. Please refer to our Terms of Use for any information regarding our disclosure principles.

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