Legg Mason gains -0.26 percent regardless of market hike

Today's write-up is for all stakeholders who are seriously contemplating on exiting a position in Legg Mason. I will summarize the rationale of why Legg Mason stakeholders should not be insulted by the new pull down. In this post I will also go over different drivers effecting the stock products and services and how it may effect Legg Mason investors. We found thirty-eight available fundamentals for Legg Mason which can be compared to its peers in the industry. To make sure the equity is not overpriced, please verify all Legg Mason fundamentals including its Total Debt, Market Capitalization and the relationship between Gross Profit and Short Ratio . Given that Legg Mason has Price to Earning of 9.01X, we recommend you check Legg Mason last-minute market performance to make sure the company can sustain itself down the road. Use Legg Mason to protect your portfolios against small markets fluctuations. The stock experiences normal downward trend and little activity. Check odds of Legg Mason to be traded at $37.98 in 30 days.
Published over a year ago
View all stories for Legg Mason | View All Stories
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.

Reviewed by Rifka Kats

I believe the organisation is undervalued at 41.03 per share with modest projections ahead. Legg Mason has performance score of 1 on a scale of 0 to 100. The company secures Beta (Market Risk) of 0.9531 which conveys that Legg Mason returns are very sensitive to returns on the market. as market goes up or down, Legg Mason is expected to follow. Although it is extremely important to respect Legg Mason price patterns, it is better to be realistic regarding the information on equity historical price patterns. The philosophy towards estimating future performance of any stock is to evaluate the business as a whole together with its past performance including all available fundamental and technical indicators. By analyzing Legg Mason technical indicators you can presently evaluate if the expected return of 0.0389% will be sustainable into the future. Legg Mason right now secures a risk of 1.5473%. Please verify Legg Mason Information Ratio as well as the relationship between Potential Upside and Kurtosis to decide if Legg Mason will be following its current price movements.

How important is Legg Mason's Liquidity

Legg Mason financial leverage refers to using borrowed capital as a funding source to finance Legg Mason ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Legg Mason 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 Legg Mason'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 Legg Mason'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 Legg Mason's total debt and its cash.

Breaking it down

Legg Mason holds a total of 86.75 Million outstanding shares. Majority of Legg Mason outstanding shares are owned by institutional investers. These third-party entities are referred to non-private investors that are looking to shop for positions in Legg Mason to benefit from reduced commissions. Consequently, other institutions are subject to different set of regulations than regular investors in Legg Mason. Please pay attention to any change in the institutional holdings of Legg Mason as this could imply that something significant has changed or about to change at the company. Remember, it does not matter if the company is currently losing money. If the true value of the company is more than the market pays for it currently, you can still have a good investment opportunity. The current investor indifference towards the small price fluctuations of Legg Mason may encourage investors to take a closer look at the firm as it closed today at a share price of 38.14 on 359205.000 in trading volume. The company executives did not add any value to Legg Mason investors in August. However, most investors can still diversify their portfolios with Legg Mason to hedge your portfolio against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.5473. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. Legg Mason is selling at 38.36. That is 0.26 percent decrease. Today lowest is 38.14. Legg Mason Earnings per Basic Share USD is increasing over the last 4 years. The new value of Legg Mason Earnings per Basic Share USD is 0.80. Legg Mason Market Capitalization is considerably stable at the moment. Furthermore, Legg Mason Share Based Compensation is considerably stable at the moment.
 2015 2016 2017 2018 2019 (projected)
Legg Mason Accounts Payable 201,572,000  181,793,000  175,583,000  182,921,000  232,311,789 
Legg Mason Receivables 409,616,000  503,719,000  552,618,000  482,577,000  531,163,000 
To conclude, I belive Legg Mason is currently undervalued. It Almost mirrors market and projects close to average odds of financial turmoil in the next two years. Our concluding buy or sell advice on the business is Strong Buy.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

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 Vlad Skutelnik do not own shares of Legg Mason. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com