What Are The Risk Factors For Liberty Global plc (LBTYA)?

As of Thursday close, Liberty Global plc’s (NASDAQ:LBTYA) stock was down -$0.3, moving down -1.63 percent to $18.14. The average number of shares traded per day over the past five days has been 1,428,520 shares. 4 times new highs have been achieved over the past 5 days, with a -$0.17 fall in that time frame. In the last twenty days, the average volume was 2,603,540, while in the previous 50 days, it was 1,992,504.

Since last month, LBTYA stock rose 4.25%. Shares of the company fell to $17.19 on 08/22/23, the lowest level in the past month. A 52-week high of $22.09 was reached on 02/02/23 after having rallying from a 52-week low of $15.22. Since the beginning of this year, LBTYA’s stock price has dropped by -4.17% or -$0.79, and marked a new high 9 times. However, the stock has declined by -17.88% since its 52-week high.

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LBTYA stock investors should be aware that Liberty Global plc (LBTYA) stock had its last reported insider trading activity 9 days ago on Sep 13. Waldron Jason, the SVP & CAO of the company, disposed of 9,714 shares for $19.46 on Sep 13. It resulted in a $189,048 divestment by the insider. Waldron Jason sold 2,329 shares at an average price of $19.01 on Sep 12. The insider now owns 38,498 shares following the transaction. On Sep 11, SVP & CAO Waldron Jason sold 12,506 shares at $18.74 apiece. The transaction was valued at $234,388.

Valuation Metrics

The stock’s beta is 1.26. Besides these, the trailing price-to-sales (P/S) ratio of 1.10, the price-to-book (PB) ratio of 0.37, and the price-to-cash flow ratio of 7.53 may also be considered.

Financial Health

In the recent quarter, Liberty Global plc’s quick ratio stood at 1.50, while its current ratio was 1.50, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the recent quarter was 0.66, and the total debt-to-equity ratio was 0.69. On the profitability front, the trailing twelve-month gross margin is 53.90% percent. In the recent year, EBITDA margin amounted to 33.54%, whereas operating margins totaled 0.80%. Based on annual data, LBTYA earned $5.11 billion in gross profit and brought in $7.2 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 1.50%. Return on equity (ROE) for the past 12 months was -15.90%.

According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. LBTYA’s revenue rose 5.08% to $1.87 billion during the quarter, while net income inched up to $1.85 billion. During the quarter, the company generated $540.6 million in EBITDA. The liabilities of Liberty Global plc were 22.0 billion at the end of its most recent quarter, and its total debt was $17.75 billion. The value of shareholders’ equity is $424.33 million.

Technical Picture

This quick technical analysis looks at Liberty Global plc’s (LBTYA) price momentum. With a historical volatility rate of 19.71%, the RSI 9-day stood at 48.74% on 21 September.

With respect to its five-day moving average, the current Liberty Global plc price is down by -0.93% percent or -$0.17. At present, LBTYA shares trade +1.40% above its 20-day simple moving average and -7.02% percent below its 100-day simple moving average. However, the stock is currently trading approximately +0.67% above its SMA50 and -7.59% below its SMA200.

Stochastic coefficient K was 74.16% and Stochastic coefficient D was 82.04%, while ATR was 0.43. Given the Stochastic reading of 55.46% for the 14-day period, the RSI (14) reading has been calculated as 50.17%. As of today, the MACD Oscillator reading stands at 0.12, while the 14-day reading stands at 0.35.

Analyst Ratings

Liberty Global plc downgraded its rating on Liberty Global plc (NASDAQ: LBTYA) to a Mkt perform in a note to investors on January 12, 2023. The analysts firm previously had an Outperform rating on the stock.Liberty Global plc (LBTYA) has been rated Overweight by analysts. According to 0 brokerage firms, LBTYA is a sell, and 6 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 1 analyst rate Liberty Global plc stock as buy, with 8 recommending it as overweight.

With a median target price of $25.00, the current consensus forecast for the stock is $20.00 – $51.00. Based on these forecasts, analysts predict Liberty Global plc (LBTYA) will achieve an average price target of $27.99.

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