Legal & General Share Discussion Threads

[cwa1] 25/4/2024 16:52

Well, the jury is in...for today at least...with the share price closing down 15.8p. Just about in line with what I suggested and expected.

Tomorrow, however, is another day...

[richie1218] 25/4/2024 16:20

Legal & General share price upgraded as investment bank becomes more bullish on buyback
14 Mar 2024

JP Morgan has upgraded its price target for Legal & General Group PLC (LSE:LGEN) to 330p from 305p, reflecting its positive assessment of the insurer's future performance.

It has done so ahead of a capital markets event, set to unveil new CEO António Simões' strategy and to spotlight a simplified business approach, growth opportunities, and key financial metrics and targets, including L&G's new capital management policy.

JP Morgan forecasts the initiation of a £150 million per annum buyback programme by L&G, along with the presentation of metrics indicating potential for significant growth in assets, operating profit, and cash flow, surpassing consensus expectations.

In light of these projections, L&G has been placed on Positive Catalyst Watch, by the American investment bank, which reiterated its 'overweight' rating on the stock.

In afternoon trade, the stock was changing hands for 247.9p, up 2.5p.

[rongetsrich] 25/4/2024 16:00

GARYCOOK, if you look now those that sold last thing yesterday are all in profit!Snapshot thing is great isn't it!

[cassini] 25/4/2024 15:28

Stagflationary economic data in USA caused that dump after about 1:30pm.

The market is seeing those anticipated rate cuts recede into the distance.

The US 10 year Treasury yield moved up again today, up from 4.66% yesterday to 4.72% right now.

This is getting towards the yield level (~5%) where market jitters start to appear.

[123trev] 25/4/2024 15:21

In the last few years look at the eps and then the dividend that will be the same again in the next results interest rates and IFRS17 only make things worse not saying they haven’t got a store of wealth behind them but the new guy will have to take a look at it and the past promises have been fulfilled. He might well make similar promises but from a lower starting point.

[m12rtn] 25/4/2024 14:50

Is the dividend cut because he is new and wants to impress the market with his highly skilled get the shareholders behind me experience? Or are you being sarcastic?

[123trev] 25/4/2024 14:27

If markets turn sour for a while and they probably will considering then not much point in buying here now especially with the new guy laying out his plans in June and that’s got to include a dividend cut together with interest rates staying higher thinking £2 is definitely on the cards again this year.

[devonbeachbum] 25/4/2024 14:22

With NYSE about to open and S&P futures 1.29% down can't be a coincidence that the early gains on FTSE are evaporating fast.

[colonelgrim] 25/4/2024 13:51

Nice little gap down we need to fill here lads!

Oh yes, almost forgot, my apologies to all certificated holders here for still keeping my 8,998 shares in CREST 🤣

[devonbeachbum] 25/4/2024 13:15

Lol, some people are very quick to claim a 'victory' here!

Interesting point you make Yump. We'll see what happens over the next month.

[richie1218] 25/4/2024 13:14

A bit of old news but maybe relevant to the next share price movement up or down ...

Legal and General shares down as strategic review announced
The insurer aims to unveil its plans at the summer capital markets day
07 March 2024

Legal and General posted what management described as “resilientR21; full-year results as its new boss said he was undertaking a strategic review of the business. New chief executive António Simões said it was the right time to “take a fresh perspective,” build the insurer’s track record and “set out a vision for profitable and sustainable growth.” Simões, who was previously at Spanish banking giant Santander, says he will outline the company’s new plans and strategy at the upcoming capital markets event on 12 June.

‘Challenging markets’ for the insurer
Meanwhile, he said that the company, which owns the UK’s biggest asset management business as well as its pensions and insurance divisions, had performed well in a difficult year. “We are on course to achieve our five-year targets, and demonstrated resilience in challenging markets to achieve record new business volumes in pension risk transfer, UK annuities and US protection, increasing our store of future profit,” Simões told investors. “Our international assets under management and alternative assets portfolio continue to grow, as does our position in the UK defined contribution pensions market.”

Operating profit remained flat at £1.67 billion for the full year 2023 (£1.66 billion in 2022). Pre-tax profits, excluding longevity and internal pension scheme accounting, fell to £561 million from £1 billion last year. This was due to the lower than expected valuation of property assets, the closure of Legal and General’s Modular Homes business and the write-down of its investment in Onto.

However, the insurer saw record volumes across its businesses, with £13.7 billion of institutional annuities (£10.5bn retained premium), £1.4 billion of individual annuities and $175m of US protection new business premium. Meanwhile, new business CSM (contractual service margin – the profit yet to be released from insurance contracts) contributed £1.2 billion (2022: £0.9 billion) and CSM grew 9% to £13 billion (£11.9 billion in 2022).
Strategic review: Nothing ruled out
Meanwhile, in terms of the strategic review, Simões would not be drawn on what he is planning but said he is “looking at everything” including the company’s house building division Cala Homes, although he described it as a “strong franchise”.

Legal & General’s Solvency II coverage ratio - essentially its financial stress test - dipped slightly but remained relatively strong at 224% (compared with 236% in 2022). The shares fell 2% on the day of the results.

Analysts at broker RBC Capital Markets described the figures as “mixed”. However, those at broker JP Morgan Chase think the shares could reach 295p and have an “overweight221; recommendation.

Down 8% this year, at 244p, the shares are trading some way off their three-year highs of 299.6p seen in April 2021. They may also be worth watching for the 8% yield.

Past performance is not a guide to future performance.

[yump] 25/4/2024 11:58

I get the impression that if the charts are showing a clearly bottomed out price and then a reasonably stable rise, then the share price is dropping by the div amount when ex div.

Phnx and Mng charts don’t show conclusive bottoms, lgen amd lloy have been off bottom for a while, AV has a pretty healthy chart already.

[rongetsrich] 25/4/2024 11:07

GARY, we can all choose a moment in time to call a loss, but I've made the dividend and I've spent it. Don't just snapshot because anyone can call a moment of their choosing. Those that sold yesterday at the right time were already 4p better off, then when it dropped immediately by over 15p... I could go on, but a closed mind is an empty wallet in good time. The maths is easy!Did I get in at a good price with LGEN, nope! I took my profit to MNG which is on its backside for a similar no reason.

[heialex1] 25/4/2024 10:52

Great yield on this stock. Ex-dividend dates often great days to accumulate for the long run

[williamcooper104] 25/4/2024 10:47

Problem is that over the long term you'll get about half of the calls right and half wrong But every time you'll get hit with stamp duty (CFDs avoid that but they have heavier dealing fees and have own complications) so it's an almost guaranteed long term loss

[garycook] 25/4/2024 10:04

Woody, Enjoy the HSBC dividend being paid today. If you own it.

[williamcooper104] 25/4/2024 09:58

And we are up on the ex div day My broker shows my position inclusive of the divi accrual which is helpful

[garycook] 25/4/2024 09:57

tuftymatt,You made the correct decision I believe. I have never Sold a share before XD. Like Woodhawk says. Just pure gambling !

[tornado12] 25/4/2024 09:56

Like you Tufty, I didn’t add here but added again in PHNX … will add here when it really reaches sub 230p in the next months GLA

[woodhawk] 25/4/2024 09:55

Garycook, they're all a bargain at these levels of prices anyway. How often do you get companies as robust as these with near double-digit yields?

[tuftymatt] 25/4/2024 09:53

Yes it's good to see it's played out that way Gary so far.

Must admit to having been tempted to chance it but glad I didn't. Now thinking about when to add ahead of the next divi!!

Good luck all 👍🏻

[garycook] 25/4/2024 09:49

Anyone who Sold before XD, are now out of pocket atm, if they wanted to buy back LGEN. Not been hit as hard as AV,MNG,and PHNX.

[markth] 25/4/2024 09:43

Is the return from compounding of the divvy not more than what you get from divvy dodging?

[rongetsrich] 25/4/2024 09:01

Not enough drop for me, bought more AV. and MNG.