This firm's average rating is Strong Sell from 4 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Waddell Reed market sentiment investors' perception of the future value of Waddell. Let us look at a few aspects of Waddell technical analysis. About 117.0% of the company outstanding shares are owned by institutional investors. Waddell Reed Financial has Price to Book (P/B) ratio of 1.3. Historically many companies with similar price-to-book (P/B) ratio do better than the market in the long run. The entity had 3:2 split on the 10th of April 2000.
Waddell Reed
financial leverage refers to using borrowed capital as a funding source to finance Waddell Reed Financial ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Waddell Reed 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 Waddell Reed'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 Waddell Reed'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 Waddell Reed's total debt and its cash.
Closer look at Waddell Reed Semi Deviation
Waddell Reed Financial has current Semi Deviation of 2.71. Semi-deviation provides a good measure of downside risk for a equity or a portfolio. It is similar to standard deviation, but it only looks at periods where the returns are less than the target or average level.
Semi-deviation is the square root of semi-variance. Semi-variance is calculated by averaging the deviations of returns that have a result that is less than the mean.
Semi Deviation | = | SQRT(SV) |
| = | 2.71 |
Let's now compare Waddell Reed Semi Deviation to its closest peers:
| WDR | 2.709049683022883 |
| TROW | 1.96 |
| BK | 2.6 |
| IVSXF | 5.2 |
| BAM | 2.69 |
Our perspective of the latest Waddell Reed spike
Waddell Reed total risk alpha is up to -0.01. As of the 28th of July, Waddell Reed maintains the Downside Deviation of 3.16,
market risk adjusted performance of
(2.16), and Mean Deviation of 2.41. Relative to
fundamental indicators, the
technical analysis model lets you check existing technical drivers of Waddell Reed Financial, as well as the relationship between them. Specifically, you can use this information to find out if the company will indeed mirror its model of past data patterns, or the prices will eventually revert. We were able to analyze and collect data for nineteen
technical drivers for Waddell Reed Financial, which can be compared to its rivals. Please check out
Waddell Reed Financial information ratio, as well as the
relationship between the potential upside and
kurtosis to decide if Waddell Reed Financial is priced fairly, providing market reflects its latest price of 15.23 per share. Given that Waddell Reed Financial has
jensen alpha of 0.3056, we strongly advise you to confirm Waddell Reed Financial's prevalent market performance to make sure the company can sustain itself at a future point.
Our Final Takeaway
While few other entities under the asset management industry are still a bit expensive, Waddell Reed may offer a potential longer-term growth to retail investors. The bottom line, as of the 28th of July 2020, we believe Waddell Reed is currently
overvalued. It moves indifferently to market moves and projects
low chance of bankruptcy in the next two years. Our primary 30 days 'Buy-Sell' recommendation on the enterprise is
Strong Sell.
Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile 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 Rifka Kats do not own shares of Waddell Reed Financial. Please refer to our
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