8/14/2023 0 Comments Linkedin stock quote todayCantor Fitzgerald analysts raised their target from $125 to $145, Wedbush pushed its target from $106 to $140, and Northland Capital increased its target from $125 to $145. Some of those price targets are still lower than the stock’s skyrocketing price Friday, however. Bank of America, Citigroup, JPMorgan, Wedbush Securities, Cantor Fitzgerald, Evercore Partners and Piper Jaffray were among the firms that pushed higher their estimates for the best price at which to sell the stock. “2012 was a transformative year for LinkedIn,” CEO Jeff Weiner said in Thursday’s news release, later adding, “The products we delivered throughout the year drove member engagement and financial results to record levels in the fourth quarter.”Īnalysts responded Friday morning by increasing their price targets for LinkedIn. Excluding certain items, the company brought in 89 cents a share on the year, more than doubling its 2011 profit of 35 cents a share. Analysts on average expected the company to report profit of 19 cents a share on revenue of $280 million, according to Thomson Reuters.įor the calendar year, LinkedIn barely missed topping $1 billion in revenue at $972.3 million, 86 percent higher than the 2011 total of $522.2 million. LinkedIn reported revenue of $303.6 million, 81 percent higher than the same quarter in 2012, with profit of 35 cents a share. The final three months of 2012 was no different, as LinkedIn blew away forecasts for revenue and profit. ![]() ![]() Investors and analysts have been wowed by the company’s continuing growth, which has allowed it to beat analyst projections for quarterly revenues in every single quarter since the IPO. The Mountain View company has been the most successful social-media stock on the market since its initial public offering at $45 a share in May 2011. Shares moved as high as $151.89 Friday before closing at $150.48, a gain of $26.39, or 21.3 percent, with both prices representing new records for LinkedIn stock. PE ratios still provide comps to peer groups, but they do not represent free market fair value anymore.MOUNTAIN VIEW - LinkedIn stock roared to record prices Friday, rising more than 20 percent and breaking the $150 level for the first time after the professional networking company destroyed expectations by recording its first quarter with more than $300 million in revenue. Multiples can increase based on fabricated demand even if earnings growth does not warrant the higher valuation levels. The PE Ratio alone does not reveal fair value.įair value is what someone is willing to pay, they say, and that is true, but in a time of free money and stimulus the willingness to pay more may also be skewed. The PE ratio simply reveals how many times earnings an investor is willing to pay, or that a shareholder is willing to maintain. The higher the PE multiple the more expensive a company may be, but that is not always true. ![]() However, the fact remains that a PE ratio reveals how much an investor is willing to pay for the earnings of a company at any given time. Instead of comparing historical averages, investors today use peer groups to compare PE multiples for individual companies because those stocks often trade in the higher PE spectrum that exists in today’s environment. ![]() This is often referred to as the multiple of a stock, and when groups, markets, or sectors are defined the multiples of all the stocks in those groups can be averaged to define average PE multiples as well.Īverage PE multiples have been popularized in recent years because historical comparisons make current valuations look stretched. The PE Ratio chart for Linkedin (LNKD) is a valuation observation.Ī PE Ratio is a price to earnings ratio that has historically helped investors define fair value.
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