Open Lending Story

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LPRO -- USA Stock  

USD 35.56  0.20  0.56%

The upcoming quarterly report is expected on the 8th of June 2021. The stock is still going through an active upward rally. As many investors are getting excited about financial services space, it is fair to outline Open Lending Corp as an investment option. Here we also measure the ability of Open Lending to meet its long-term debt obligations, such as interest payments on debt, the final principal payment on the debt, and any other fixed obligations like lease payments.
Published over two weeks ago
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Will Open Lending (NASDAQ:LPRO) continue to grow in May?
Open Lending currently holds 160.89 M in liabilities.
Open Lending advice module can be used to check and cross-verify current recommendation provided by analysts analyzing the firm's potential to grow using all of fundamental, technical, data market data available at the time.
The company has Profit Margin (PM) of 63.67 %, which can signify that it executes well on its competitive strategies and has good control over its expenditures. This is very large. Similarly, it shows Operating Margin (OM) of 64.63 %, which suggests for every 100 dollars of sales, it generated a net operating income of 0.65.
Open Lending financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Open Lending, including all of Open Lending's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Open Lending assets, the company is considered highly leveraged. Understanding the composition and structure of overall Open Lending debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding Open Lending Total Debt

Open Lending Corp liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Open Lending Corp has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Open Lending balance sheet include debt obligations and money owed to different Open Lending vendors, workers, and loan providers. Below is the chart of Open Lending main long-term debt accounts currently reported on its balance sheet.
You can use Open Lending Corp financial leverage analysis tool to get a better grip on understanding its financial position

How important is Open Lending's Liquidity

Open Lending financial leverage refers to using borrowed capital as a funding source to finance Open Lending Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Open Lending financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Open Lending's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Open Lending, but it might be worth checking our own buy vs. sell analysis

Sale by Greenberg Blair J of 25481 shares of Open Lending

Legal trades by Open Lending insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Open Lending insider trading alert for sale of common stock by Greenberg Blair J, the corporate stakeholder, on 8th of April 2021. This event was filed by Open Lending Corp with SEC on 2021-04-08. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper Perspective

This firm reported the previous year's revenue of 90.79 M. Net Loss for the year was (32.52 M) with profit before overhead, payroll, taxes, and interest of 85.04 M.

Asset Breakdown

131.3 M
Assets Non Current
76.2 M
Tax Assets
175.6 M
Current Assets
Total Assets280.7 Million
Current Assets175.63 Million
Assets Non Current131.32 Million
Tax Assets76.25 Million

Over 3 percent rise for Open Lending. What does it mean for institutional investors?

Latest Treynor Ratio is up to 0.1. Price may slide again. Open Lending Corp shows above-average downside volatility for the selected time horizon. We advise investors to inspect Open Lending Corp further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Open Lending future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Open Lending's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Open Lending's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Takeaway on Open Lending Investment

Whereas some other firms under the shell companies industry are still a bit expensive, Open Lending may offer a potential longer-term growth to institutional investors. While some institutional investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Open Lending.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Open Lending Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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