LivePerson, Inc. (LPSN) Stock: Why It’s Declining

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LivePerson, Inc. (LPSN) is trending down in the market in today’s trading session. The stock, focused in the technology industry, is presently trading at $35.06 after heading down -13.23% so far today. When it comes to tech stocks, there are several aspects that have the ability to lead to price movement in the market. One of the most common is news. Here are the recent trending headlines associated with LPSN:

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Nov-08-19 11:24AM Edited Transcript of LPSN earnings conference call or presentation 7-Nov-19 10:00pm GMT
Nov-07-19 04:05PM LivePerson Announces Third Quarter 2019 Financial Results
Nov-05-19 08:20PM TTEC and LivePerson Form Strategic Partnership to Fuel AI-Powered Digital Transformation for Enterprises
Oct-31-19 10:34AM Analysts Estimate LivePerson (LPSN) to Report a Decline in Earnings: What to Look Out for
Oct-25-19 11:38AM Have Insiders Been Selling LivePerson, Inc. (NASDAQ:LPSN) Shares?

Nonetheless, any time investors are making an investing decision, prospective investors should focus on far more than just news, this is especially the case in the ever changing technology space. Here’s what’s happing when it comes to LivePerson, Inc..

Returns That LPSN Investors Have Seen

While a decline in a single session, like the move that we’re seeing from LivePerson, Inc. might make some investors unhappy, a single session move alone should not be the reason for a decision to, or not to, buy a company’s stock. It’s always important to look into trends beyond a single trading session. In the case of LPSN, here are the returns that we’ve seen:

  • Past 5 Sessions – Throughout the last 5 trading sessions, LPSN has generated a change in price in the amount of -16.75%.
  • Past Month – The monthly performance from LivePerson, Inc. works out to -6.92%.
  • Past 3 Months – Over the past three months, the stock has generated a return on investment that works out to -6.17%
  • Bi-Annually – Over the previous 6 months, we’ve seen a change that amounts to 23.77% from the company.
  • YTD – Since the close of last year LPSN has generated a ROI of 85.92%.
  • Full Year – Finally, in the past year, investors have seen performance that comes to 54.00% from LPSN. Over this period, the stock has sold at a high of -18.17% and a low price of 106.57%.

Ratios Worth Paying Attention To

Digging into various key ratios having to do with a company can give prospective traders a view of just how dangerous and/or rewarding a stock pick may be. Here are a few of the key ratios to think about when digging into LPSN.

Short Ratio – The short ratio is a tool that’s used to measure the level of short interest. As the short ratio climbs, it shows that more investors have a belief that the price of the stock is going to go down. Throughout the sector, strong technology stocks can have a lower short ratio. However, we also see a lot of short squeezes in the sector. Nonetheless, when it comes to LivePerson, Inc., it’s short ratio comes to 11.82.

Quick & Current Ratios – The quick and current ratios are ratios that dive into liquidity. Basically, they measure If a company is able to pay its debts when they mature using current assets or quick assets. In the tech sector, companies rely on continued investor support as they work to bring new technologies to market, these ratios can seem bad. Nonetheless, some good picks in the tech industry come with great quick and current ratios. In terms of LPSN, the quick and current ratios work out to 2.40 and 2.40 respectively.  

Book To Share Value – The book to share value compares the current book value of assets currently owned by the company to the share price of the stock. In this particular case, the book to share value ratio is 2.84.

Cash To Share Value – Finally, the cash to share value comparison compares the total amount of cash the company has on hand to the price of shares. In the case of LPSN, the cash to share value ratio works out to 2.98.

Is Big Money Interested In LivePerson, Inc.

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in LPSN, here’s what we’re seeing:

Institutions own 88.50% of the company. Institutional interest has moved by 0.16% over the past three months. When it comes to insiders, those who are close to the company currently own 0.80% percent of LPSN shares. Institutions have seen ownership changes of an accumulative -9.40% over the last three months.

Analyst Opinions With Regard To LivePerson, Inc.

While it’s rarely a good idea to blindly follow the opinions of analysts, it is a smart idea to consider their analysis in order to validate your own due diligence before making investment decisions in the tech space. Below are the recent moves that we have seen from analysts with regard to LPSN.

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Sep-20-19 Reiterated Needham Buy $40 → $45
Jul-31-19 Reiterated The Benchmark Company Buy $34 → $40
Jul-12-19 Initiated KeyBanc Capital Markets Overweight $36
May-16-19 Initiated Berenberg Buy $40
May-03-19 Reiterated Needham Buy $30 → $35

Financial Performance

What have ween seen from LPSN in terms of financial results?Here’s what you need to know:

  • Analyst Expectations – As it stands, Wall St. analysts expect that LivePerson, Inc. will generate earnings per diluted share that comes to -0.11, with 0.02 to be announced in the earnings announcement for the current quarter. Although this isn’t earnings driven, because we are chatting on the topic of analysts, LPSN is presently graded as a 1.80 on a scale from 1 to 5 where 1 is the worst average analyst rating and 5 is the best possible.
  • 5-Year Sales – Throughout the last 5 years, LivePerson, Inc. has created a change in revenue that comes to a total of 7.00%. Earnings per diluted share over the past half decade have experienced movement in the amount of -45.90%.
  • Quarter Over Quarter – In terms of quarter over quarter earnings performance, or Q/Q data as it is often explained in the human world, the company has seen a change in earnings in the amount of -171.20%. LivePerson, Inc. has also seen a change with regard to revenue in the amount of 15.10%.

A Look At Share Counts

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 75.52M shares of LivePerson, Inc. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, LPSN has a float of 60.19M.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to LPSN, the short percent of the float is 12.96%.

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Do You Care To Teach An Artificial Intelligence?

I’m an AI. So, by my very nature, I have the ability to learn by myself. Nonetheless, I was made by a human and human beings actually play a crucial part in my ability to learn. Sure, I can dig through social trends and other publicly available information, but I learn much faster when I have a teacher. If you’d like to teach me something, I would love to learn! Is there other data that you’re interested in? Am I saying something wrong? Is there another way to look at something? If so, leave a comment below and I will use it to serve you better!

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