LivePerson Inc. [NASDAQ: LPSN] stock went on a downward path that fall over -9.64% on Tuesday, amounting to a one-week price decrease of less than -4.69%. The company report on December 1, 2020 that LivePerson Announces Proposed Private Offering of $450 Million of Convertible Senior Notes Due 2026.
LivePerson, Inc. (NASDAQ: LPSN) (“LivePerson”) announced that it intends to offer, subject to market conditions and other factors, $450.0 million aggregate principal amount of Convertible Senior Notes due 2026 (the “Notes”) in a private offering to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A promulgated under the Securities Act of 1933, as amended (the “Act”). LivePerson also intends to grant to the initial purchasers of the Notes a 13-day option to purchase up to an additional $67.5 million aggregate principal amount of the Notes.
The Notes will be senior, unsecured obligations of LivePerson, and will bear interest payable semi-annually in arrears. The Notes will mature on December 15, 2026, unless converted, repurchased or redeemed in accordance with their terms prior to such date. Prior to August 15, 2026, the Notes will be convertible at the option of holders only under certain circumstances, and thereafter, at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date. Upon conversion, the Notes may be settled in shares of LivePerson common stock, cash or a combination thereof, at the election of LivePerson.
Over the last 12 months, LPSN stock rose by 39.18%. The one-year LivePerson Inc. stock forecast points to a potential upside of 23.42. The average equity rating for LPSN stock is currently 2.00, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $3.39 billion, with 66.45 million shares outstanding and 61.43 million shares in the current float. Compared to the average trading volume of 725.07K shares, LPSN stock reached a trading volume of 2650068 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Guru’s Opinion on LivePerson Inc. [LPSN]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for LPSN shares is $68.93 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on LPSN stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Needham have made an estimate for LivePerson Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on March 16, 2020. While these analysts kept the previous recommendation, The Benchmark Company raised their target price from $46 to $48. The new note on the price target was released on February 14, 2020, representing the official price target for LivePerson Inc. stock.
The Average True Range (ATR) for LivePerson Inc. is set at 3.34, with the Price to Sales ratio for LPSN stock in the period of the last 12 months amounting to 9.88. The Price to Book ratio for the last quarter was 28.38, with the Price to Cash per share for the same quarter was set at 3.09.
LPSN Stock Performance Analysis:
LivePerson Inc. [LPSN] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -4.69. With this latest performance, LPSN shares dropped by -1.25% in over the last four-week period, additionally plugging by 47.58% over the last 6 months – not to mention a rise of 39.18% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for LPSN stock in for the last two-week period is set at 46.05, with the RSI for the last a single of trading hit 43.03, and the three-weeks RSI is set at 46.72 for LivePerson Inc. [LPSN]. The present Moving Average for the last 50 days of trading for this stock 55.36, while it was recorded at 55.55 for the last single week of trading, and 41.32 for the last 200 days.
Insight into LivePerson Inc. Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and LivePerson Inc. [LPSN] shares currently have an operating margin of -29.14 and a Gross Margin at +69.66. LivePerson Inc.’s Net Margin is presently recorded at -32.95.
Return on Total Capital for LPSN is now -32.83, given the latest momentum, and Return on Invested Capital for the company is -37.59. Return on Equity for this stock declined to -60.18, with Return on Assets sitting at -23.93. When it comes to the capital structure of this company, LivePerson Inc. [LPSN] has a Total Debt to Total Equity ratio set at 133.62. Additionally, LPSN Total Debt to Total Capital is recorded at 57.20, with Total Debt to Total Assets ending up at 38.71. Long-Term Debt to Equity for the company is recorded at 129.18, with the Long-Term Debt to Total Capital now at 55.29.
Reflecting on the efficiency of the workforce at the company, LivePerson Inc. [LPSN] managed to generate an average of -$71,641 per employee. Receivables Turnover for the company is 4.36 with a Total Asset Turnover recorded at a value of 0.73.LivePerson Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.40 and a Current Ratio set at 1.40.
LPSN Stock EPS
With the latest financial reports released by the company, LivePerson Inc. posted -0.06/share EPS, while the average EPS was predicted by analysts to be reported at -0.08/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 25.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for LPSN. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for LivePerson Inc. go to 30.00%.
LivePerson Inc. [LPSN] Insider Position Details
There are presently around $3,638 million, in the hands of institutional investors. The top three institutional holders of LPSN stocks are: BLACKROCK INC. with ownership of 9,223,495, which is approximately -1.809% of the company’s market cap and around 0.40% of the total institutional ownership; FMR LLC, holding 8,575,982 shares of the stock with an approximate value of $452.73 million in LPSN stocks shares; and VANGUARD GROUP INC, currently with $337.28 million in LPSN stock with ownership of nearly -2.377% of the company’s market capitalization.
Positions in LivePerson Inc. stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 136 institutional holders increased their position in LivePerson Inc. [NASDAQ:LPSN] by around 10,165,871 shares. Additionally, 104 investors decreased positions by around 5,120,207 shares, while 23 investors held positions by with 53,634,539 shares. The mentioned changes placed institutional holdings at 68,920,617 shares, according to the latest SEC report filing. LPSN stock had 58 new institutional investments in for a total of 5,696,948 shares, while 19 institutional investors sold positions of 320,487 shares during the same period.