LivePerson: Buy, Sell, or Hold? Analysts Weigh In

Is LivePerson a Buy, Sell, or Hold?

Analysts at seven rating firms have assigned an average recommendation of "Hold" for LivePerson, Inc. (NASDAQ: LPSN). One analyst has rated the stock as a "Sell," five have assigned a "Hold," and one has given it a "Buy" rating. The consensus 12-month price target among brokerages that have recently updated their coverage on the stock is $3.08.

Analyst Downgrades: Barclays, Mizuho, Roth Capital, and Roth Mkm

Several research firms have recently weighed in on LivePerson, with several downgrading their ratings.

• Barclays lowered its target price from $3.50 to $1.50 and assigned an "Underweight" rating to the company.
• Mizuho reduced its target price from $3.00 to $2.00 and set a "Neutral" rating.
• Roth Capital downgraded the stock from "Buy" to "Neutral."
• Roth Mkm also downgraded LivePerson from "Buy" to "Neutral" and lowered its price target from $6.00 to $2.00.

Insider Transactions: Directors Buy Shares

Insider buying and selling can provide insights into the company's future prospects.

• Director William Wesemann acquired 100,000 shares of LivePerson stock at an average cost of $1.00 per share.
• Major shareholder Vector Capital Management, L.P. purchased 26,630 shares at an average price of $3.59 per share.
• Director William Wesemann made another purchase of 100,000 shares at $1.00 per share.

Institutional Investors: Bullish on LivePerson

Institutional investors have recently increased their stakes in the company.

• Vector Capital Management L.P. acquired a new stake valued at approximately $37,089,000 in the fourth quarter.
• Starboard Value LP purchased a new stake worth $156,410,000 in the first quarter.
• AIGH Capital Management LLC acquired a new stake valued at $6,102,000 in the fourth quarter.
• Squarepoint Ops LLC bought a new stake worth $5,625,000 in the first quarter.
• Two Sigma Investments LP increased its stake by 1,629.1% during the first quarter, now owning 1,082,447 shares valued at $4,774,000.

Hedge funds and other institutional investors currently own 73.53% of LivePerson's stock.

Financial Performance: Earnings Miss, Revenue Beat

LivePerson reported a loss per share of $0.26 for the quarter, missing analysts' consensus estimate of $0.20. However, revenue of $95.47 million exceeded expectations of $95.54 million.

Technical Analysis: Trading Down, Moving Averages

LivePerson's stock price opened at $1.02 on Monday, with a 52-week low of $0.96 and a 52-week high of $6.41. The stock has a 50-day moving average of $2.19 and a 200-day moving average of $2.94.

Valuation Metrics: Low Market Cap, Negative P/E

LivePerson has a market capitalization of $89.43 million, a price-to-earnings (P/E) ratio of -0.80, and a beta of 1.52.

Analyst Consensus: Loss Expected for Fiscal Year

Research analysts collectively anticipate that LivePerson will post a loss per share of $0.68 for the current fiscal year.

About LivePerson

LivePerson, Inc. provides conversational artificial intelligence solutions. Its Conversational Cloud platform enables businesses to connect with consumers through voice, in-app, and mobile messaging channels.