Market's view on Hargreaves Lansdown
Published on April 2024
- There is an anticipation for a trading update on Tuesday from Charles Schwab, indicating a possible shift in market dynamics.
- A stock watcher highlighted the profitable margins on interest rates Hargreaves Lansdown enjoys, along with its low operational costs compared to banks.
- Concerns are raised about Hargreaves Lansdown being previously overvalued and its dividends remaining low, suggesting limited potential for share price growth.
- A heavy market correction is predicted for the summer due to prolonged high interest rates impacting UK asset managers and fund performance negatively.
- Positive market reception to AJ Bell’s Q2 inflows is noted, suggesting potential optimism in that sector.
- FCA’s attention on Woodford Investment Management for inappropriate investment decisions is discussed, although no other firms are under investigation.
- Observations are made on holding support levels in share prices, hinting at potential rises, and discussions around buying shares at lower prices.
- The impact of high trading fees on client retention and acquisition for Hargreaves Lansdown is critiqued, with expectations of an announcement on fee adjustments.
- The new CEO at Hargreaves Lansdown is credited with significant positive changes, aligning with a long-term recovery outlook for the company.