Livongo Health Inc. (NASDAQ: LVGO) – Suitable For Long Term Buy?


    The Vanguard Group, Inc. recently announced the acquisition of new stake in Livongo Health Inc. (NASDAQ:LVGO). The institutional investor has increased its shareholding in the Healthcare company by 107.40% to 4.16 million shares with purchase of 2.15 million shares. This fresh investment now brings its stake to 4.25% valued currently at $528.83 million. In addition, BlackRock Advisors LLC raised its holdings by 1.06 million to 1.94 million shares. And Wellington Management Co. LLP has lifted its position by 7,714.18% or 1.74 million shares – to 1.77 million shares.

    With over 3.7 million Livongo Health Inc. (LVGO) shares trading Monday and a closing price of $133.36 on the day, the dollar volume was approximately $493.23 million. The shares have shown a positive weekly performance of 3.00% and its price on 08/24/20 lost nearly -4.98%. Currently, there are 95.54M common shares owned by the public and among those 59.30M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 17 analysts who have offered their price forecasts for LVGO have a consensus price objective of $127.41. The analysts have set the share’s price value over the next 12 months at a high of $170.00 and a low of $55.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Livongo Health Inc. stock is 1.90 for the next 12 months. The average price target is -4.67% below its last price level and a downside to the estimated low will see the stock lose -142.47% over that period. But an upside of 21.55% will see the stock hit the forecast high price target while mean target price for the stock is $133.50.

    Insiders at the company have transacted a total of 125 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 39 of these insider trades were purchases, accounting for 2,081,362 shares. Insider sales of the common stock occurred on 86 occasions, with total insider shares sold totaling 19,950,261 shares.

    The top 3 mutual fund holders in Livongo Health Inc. are Kinnevik AB, Vanguard Total Stock Market Index, and Vanguard Small Cap Index Fund. Kinnevik AB owns 12.65 million shares of the company’s stock, all valued at over $1.61 billion. Vanguard Total Stock Market Index sold 7998.0 shares to see its total holdings shrink to 1.53 million shares valued at over $194.65 million and representing 1.56% of the shares outstanding. Vanguard Small Cap Index Fund sold 11280.0 shares to bring its total holdings to over 1.34 million shares at a value of $170.01 million. Vanguard Small Cap Index Fund now owns shares totaling to 1.37% of the shares outstanding.

    Shares of Livongo Health Inc. (NASDAQ: LVGO) opened at $141.49, up $1.14 from a prior closing price of $140.35. However, the script later closed the day at $133.36, down -4.98%. The company’s stock has a 5-day price change of 3.00% and 142.47% over the past three months. LVGO shares are trading 432.16% year to date (YTD), with the 12-month market performance up to 284.99% higher. It has a 12-month low price of $15.12 and touched a high of $150.00 over the same period. Currently, 3.7 million shares have been traded, compared to an average intraday trading volume of 5.12 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 5.61%, 29.71%, and 163.15% respectively.

    Institutional ownership of Livongo Health Inc. (NASDAQ: LVGO) shares accounts for 76.50% of the company’s 95.54M shares outstanding. Mutual fund holders own 40.00%, while other institutional holders and individual stakeholders account for 8.82% and 29.69% respectively.

    It has a market capitalization of $12.95B. The earnings-per-share (ttm) stands at -$0.36. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.58% over the week and 7.30% over the month.

    Analysts forecast that Livongo Health Inc. (LVGO) will achieve an EPS of $0.05 for the current quarter, $0.04 for the next quarter and $0.4 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.08 while analysts give the company a high EPS estimate of $0.15. Comparatively, EPS for the current quarter was -$0.05 a year ago. Earnings per share for the fiscal year are expected to decrease by -65.10%, and 84.09% over the next financial year.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 17 brokerage firm advisors rate Livongo Health Inc. (LVGO) as a “Strong Buy” at a consensus score of 1.90. Specifically, 12 Wall Street analysts polled rate the stock as a buy, while 5 of the 17 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the LVGO, a number of firms have released research notes about the stock. Stifel stated their Hold rating for the stock in a research note on August 24, 2020, with the firm’s price target at $137. The Benchmark Company coverage for the Livongo Health Inc. (LVGO) stock in a research note released on August 07, 2020 offered a Hold rating with a price target of. Needham was of a view on August 06, 2020 that the stock is Hold, while Credit Suisse gave the stock Outperform rating on July 15, 2020, issuing a price target of $132. Citigroup on their part issued Buy rating on July 14, 2020.


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