IIn recent trading, shares of Open Lending Corp (ticker: LPRO) have passed the 12-month average analyst target price of $ 33.12, changing hands to $ 33.34 / share. When a stock achieves the objective that an analyst has set, there are logically two ways for the analyst to react: a drop in valuation or a readjustment of its target price to a higher level. Analyst reaction may also depend on fundamental business developments that may be responsible for the rise in the share price – if things are improving for the company, it may be time for this target price to be raised.
There are 8 different analyst targets contributing to this average for Open Lending Corp, but the average is just that – a mathematical average. There are analysts with below average goals, including one looking for a price of $ 30.00. And then on the other side of the spectrum, an analyst has a target as high as $ 35. The standard deviation is $ 2.167.
But the whole reason to look at the LPRO’s average price target in the first place is to tap into an effort of “wisdom of the crowds”, bringing together the contributions of all of the individual spirits who have contributed to the ultimate number, as opposed to what only one considers a particular expert. And so, with LPRO surpassing that average target price of $ 33.12 / share, investors in LPRO received a good signal to spend time evaluating the business and deciding for themselves: is $ 33.12 just a stop on the way to an even higher goal, or has the valuation stretched to the point that it’s time to think about taking a few chips off the table? Below is a table showing the current thinking of analysts covering Open Lending Corp:
|Breakdown of recent LPRO analyst ratings|
|“||Running||1 month ago||2 months ago||3 months ago|
|Strong buying notes:||seven||seven||6||3|
|Strong Selling Notes:||0||0||0||0|
The average rating shown in the last row of the above table ranges from 1 to 5, where 1 is a strong buy and 5 is a strong sell. This article used data provided by Zacks Investment Research via Quandl.com. Get Zacks Latest LPRO Research Report – FREE.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.