Hargreaves Lansdown Share Discussion Threads

[ochs] 23/1/2023 14:05

From a charting point of view HL posted a 'weak test' of the 942-945 resistance level last week, as it didn't get much above 936p in the end. In recent days it has fallen back badly and is now testing the 62% Fibonacci support of the 936p to 808p range at 857p. If the shares continue to close above 857p then this level will hold.

[noveckingood] 23/1/2023 09:35

Not if it's a spread bet..

[growthpotential] 21/1/2023 20:55

I disagree, but I'm happy that any short sellers will just be more rocket fuel when it rallies

[stoopid] 20/1/2023 14:02

Failed again at that 942 mark. I bailed at 911 last week and looking to buy back in. With jefferies new price target of 820, JP Morgan has a similar price target, HL. Could well go a lot lower, back to last years lows maybe??

[stoopid] 20/1/2023 13:59

Wow, collapsed today, down 7.5% since yesterday.

[stoopid] 20/1/2023 12:47

They cut their price to 820 as well....

[lomax99] 20/1/2023 08:19

Given HL's stated aim is to increase the dividend by 3%, then the prospective dividend payments in 2023 should be 40.89p, which based on the current share price is c. 4.73%.

[cwa1] 20/1/2023 08:04

Downgraded by Jefferies this morning:-

Jefferies cuts to underperform from hold

[growthpotential] 19/1/2023 18:51

Torn another new one

[noveckingood] 17/1/2023 14:41

Avoid the company, avoid the shares.

It certainly isn't what it used to be and will get worse before it gets better...

[ochs] 16/1/2023 12:45

@jubberjim with HL it's not really about dealing volume - they make the vast majority of their profits from percentage charges based on assets under management and interest on cash held. Both of those have been going up recently and will make a difference to the bottom line - so I think you'll be surprised to the upside on 15th February. Increased dealing volumes would be a bonus, but are not a big component of HL's profits.

[ochs] 16/1/2023 12:40

The HL share price is approaching a key resistance area where the price previously failed at in November (942p to 945p). If the price can close above 945p, then the next stop should be 988p (Aug 2022 high), and then 1,069p (Mar 2022 post CMD high).

[jubberjim] 16/1/2023 11:52

A month to go until updates appear

The state of the market and lack of any meaningful dealing going on does not bode well for any firms involved in such

I think they will all suffer reduce volumes so cannot see much upside for any shares at the moment

[ochs] 14/1/2023 17:34

Hi @GrowthPotential, you can't move cash from a SIPP or LISA to a cash ISA or Active Savings I'm afraid.

Cash from a Stocks & Shares ISA can be moved to a Cash ISA, but with a LISA you'd lose the tax advantage you gained when adding the money if you withdraw it early. A SIPP is a pension product, so again you can't take cash out before retirement age.

Here's the current rates on LISA and SIPP amongst others

I've got a feeling you may only earn interest on cash in the Capital account, but you might want to double check that with HL.

[growthpotential] 14/1/2023 14:15

And does it have to be the capital account or the income account?

[growthpotential] 14/1/2023 13:19

How can i earn interest in cash at HL. I have a SIPP and a lifetime ISA, or do I need a separate cash ISA(?)Active savings(?)

[growthpotential] 11/1/2023 14:29

Has a long way to go up from here...

[ochs] 10/1/2023 14:34

Although lots of people do seem to be investing @jubberjim, despite all the risks and headwinds. UK and Germany out performing US in 2023 so far, and FTSE is up at Feb 2020 highs - wonder if this out performance can continue? I suspect not, but interesting times for sure.

[jubberjim] 09/1/2023 22:02

Peter Hargeaves is talking rubbish

The only good thing about Hargreaves is the fact that you can communicate with an individual by telephone under normal circumstances

There are a lot of investors out there who are not dealing due to the continued uncertainty in the markets

These are exacerbated by interviews like that broadcast on Sunday that shows how completely out of touch the government is with the concerns of the general populace

at this moment in time i am not adding to any positions and this general malaise is going to continue for some time

Hargreaves is a redoubtable company but until they reset they are going nowhere dividends not withstanding.

I remain reolutely on the sidelines.

FOMO rules common sense unfortunately is missing

[lomax99] 09/1/2023 15:12

From last years CMD I very much got the impression that the tech upgrade encompassed the platform overall and productivity enhancements, automated advice was neither the main focus, nor cost.

[ochs] 09/1/2023 12:50

As a big shareholder he's worried about higher wage costs, reduced dividends (the special) and whether this new advice service will actually be worth the big investment.

Peter has a designated non-exec board member to represent his interests, so you'd assume these points have been made at board meetings over the past few years, but he's clearly frustrated now. This public display of dissatisfaction could encourage other activist investors to take an interest which should only be good for share price growth.

I think that concentrating on upgrading and modernising their platform offering should be highest tech priority as it's looked and functioned pretty much the same for 10 years plus now.

[lomax99] 09/1/2023 08:28

Thanks, so basically about cutting costs and automated advice, anything new? The tech investment is not solely about automated advice.

[ochs] 08/1/2023 18:06

@lomax99, Peter has spoken to the FT as per below :-

The billionaire co-founder of Hargreaves Lansdown has called on the UK investment group to make major cutbacks in a scorching attack on the strategy pursued by the board and outgoing chief executive Chris Hill.

Peter Hargreaves, the company’s largest shareholder, said it has “been one of the worst performing shares in the FTSE 100”. Hargreaves Lansdown stock has fallen from a high of £24 in May 2019 to between £8 and £9 today.

In an interview with the Financial Times, Hargreaves said: “The board indulged in completely unnecessary irrelevant programmes, which have distracted the firm from its prime objective. It’s hardly surprising the shares have collapsed.”

Hargreaves cited the company’s rising costs and its plan to offer “hybrid” advice, combining automated financial guidance with help from advisers.

The aim is to provide customers with a wider range of help with financial decisions. For example, Hargreaves Lansdown plans to nudge customers to take advice when stock markets fall, to prevent panic-selling.

The Bristol-based company has 1.7m customers and offers investment, pensions and savings products to retail investors. The plan to provide hybrid advice will be an additional service that would sit between the current option of “do it yourself” investing or the more expensive option of a consultation with a financial adviser.

The strategy was unveiled last year by Hill and is expected to continue after he steps down in November and is replaced by Dan Olley, who has sat on the board since 2019.

Hargreaves said automated advice did not take proper account of how much risk customers wanted to take and could lead them into the wrong investments. He said the company should instead focus on its original strategy.

He added that the company also needed “a huge round of cost-cutting” and had employed “at least 1,000 people that they don’t need”.

Hargreaves Lansdown’s costs increased 7 per cent to £285m in 2022. Last February, it said it would spend £175m over five years to upgrade technology and improve its efficiency, which sent shares down 23 per cent in just over a week.

Peter Hargreaves established the business in 1981 with Stephen Lansdown. He remains the largest shareholder with a stake of nearly 20 per cent but stepped down from the board in 2015.

He said the board at Hargreaves and other blue-chip companies were paid high fees, which was also inflating costs. According to the annual report, Hargreaves Lansdown’s chair Deanna Oppenheimer was paid £334,500 in 2021.

“There are too many boards who sit pretty on ridiculously high salaries of which they are not worthy,” said Hargreaves. “That is prevailing in the big companies in Britain. There are very few boards that seem to be worth the . . . big bucks paid out to them.”

Hargreaves Lansdown declined to comment.

[porsche1945] 18/12/2022 10:19

Was thinking HL basically a growth share, rising interest rate environment is bad for growth shares anywhere just a fact. Everyone getting caught up in who is CEO, Woodford fiasco, brexit basket case U.K. going down the toilet etc…..when really this is only about rates and making money on these is only about timing, same as buying Amzn or PayPal, none of this will do any good until you see a pivot on rates, once that happens that’s when to buy. The detail doesn’t matter it’s just timing. You just wait on these, when rates start to drop then buy same with Asos boohoo or anything else that is a growth play.