Waddell Story

<div class='circular--portrait' style='background:#FF0F00;color: #FFFFF0;font-size:4em;'>WR</div>
WDR -- USA Stock  

USD 14.86  0.64  4.13%

As many of us are excited about financial services space, it is fair to sum up Waddell Reed Financial within current market trends. As expected, Waddell Reed is starting to reaffirm its true potential as retail investors are becoming more and more confident in the future outlook. The returns on investing in Waddell Reed and the market returns of the last few months appear uncorrelated to each other. Weak technical and fundamental indicators of the enterprise may also connote signs of long-running losses for Waddell retail investors. Waddell Reed Financial is scheduled to announce its earnings today. The next earnings report is expected on the 3rd of November 2020.
Published over a month ago
View all stories for Waddell Reed | View All Stories
Our latest technical analysis of Waddell Reed Financial (NYSE:WDR)
This firm's average rating is Strong Sell from 4 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Waddell Reed market sentiment investors' perception of the future value of Waddell. Let us look at a few aspects of Waddell technical analysis. About 117.0% of the company outstanding shares are owned by institutional investors. Waddell Reed Financial has Price to Book (P/B) ratio of 1.3. Historically many companies with similar price-to-book (P/B) ratio do better than the market in the long run. The entity had 3:2 split on the 10th of April 2000.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Waddell Reed Financial. In general, we focus on analyzing Waddell Reed stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Waddell Reed's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Waddell Reed's intrinsic value. In addition to deriving basic predictive indicators for Waddell Reed, we also check how macroeconomic factors affect Waddell Reed price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.

How does Waddell Stands against Peers?

Analyzing Waddell Reed competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Waddell Reed across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.
Check out Waddell Reed Competition Details

How Waddell utilizes its cash?

To perform a cash flow analysis of Waddell Reed, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Waddell Reed is receiving and how much cash it distributes out in a given period. The Waddell Reed cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Waddell Reed Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. Waddell Reed reported last year Net Cash Flow from Operations of 165.98 Million

Closer look at Waddell Reed Semi Deviation

Waddell Reed Financial has current Semi Deviation of 2.71. Semi-deviation provides a good measure of downside risk for a equity or a portfolio. It is similar to standard deviation, but it only looks at periods where the returns are less than the target or average level.

Semi-deviation is the square root of semi-variance. Semi-variance is calculated by averaging the deviations of returns that have a result that is less than the mean.

Semi Deviation 
=  
SQRT(SV) 
 = 
2.71
SQRT = Square root notation
SV =   Waddell Reed semi variance of returns over selected period
Let's now compare Waddell Reed Semi Deviation to its closest peers:
WDR
TROW
BK
IVSXF
BAM
WDR2.709049683022883
TROW1.96
BK2.6
IVSXF5.2
BAM2.69

Our perspective of the latest Waddell Reed spike

Waddell Reed total risk alpha is up to -0.01. As of the 28th of July, Waddell Reed maintains the Downside Deviation of 3.16, market risk adjusted performance of (2.16), and Mean Deviation of 2.41. Relative to fundamental indicators, the technical analysis model lets you check existing technical drivers of Waddell Reed Financial, as well as the relationship between them. Specifically, you can use this information to find out if the company will indeed mirror its model of past data patterns, or the prices will eventually revert. We were able to analyze and collect data for nineteen technical drivers for Waddell Reed Financial, which can be compared to its rivals. Please check out Waddell Reed Financial information ratio, as well as the relationship between the potential upside and kurtosis to decide if Waddell Reed Financial is priced fairly, providing market reflects its latest price of 15.23 per share. Given that Waddell Reed Financial has jensen alpha of 0.3056, we strongly advise you to confirm Waddell Reed Financial's prevalent market performance to make sure the company can sustain itself at a future point.

Our Final Takeaway

While few other entities under the asset management industry are still a bit expensive, Waddell Reed may offer a potential longer-term growth to retail investors. The bottom line, as of the 28th of July 2020, we believe Waddell Reed is currently overvalued. It moves indifferently to market moves and projects low chance of bankruptcy in the next two years. Our primary 30 days 'Buy-Sell' recommendation on the enterprise is Strong Sell.

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 Achuva Shats do not own shares of Waddell Reed Financial. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com