The Legal and General (LON: LGEN) stock price hasn’t been a ‘bull favourite” for a year. The 52-week high for LGEN is close to £265, while the stock has given a negative 3.1% return in this period. Legal and General has a market capitalisation of £12.8B, and it is Trailing twelve months’ earnings per share is £0.24, While the net return on equity is 17.07%. The price-to-earnings ratio is 9.2, while the dividend per share is £0.19 as of 2022.
Analysts are bullish
According to a report by Marketbeat Ratings, Legal & General Group Plc (LON: LGEN) has been given a “Moderate Buy” recommendation by seven rating firms that cover the stock. Out of the seven, two analysts have given a hold rating, while five analysts have given a buy rating to the LGEN stock price.
The brokers that have issued ratings on the stock in the last year have an average 12-month price objective of £314.67. Additionally, as per a separate report by Barclays, the price target for LGEN stock price has been raised from £330 to £333, with an “overweight” rating.
Technical Analysis and Prediction of LGEN Stock Price
The trend in the Legal & General Group (LGEN) share price graphs has been rather negative in recent months. After making a high of £263 in March, the stock opened a gap-down in late April and later filled the liquidity. However, despite these market movements, the bulls have not been showing the strength required to break past this trend line.
At this time, the LGEN stock price is trading at £217. The 50-day exponential moving average price is £222 while the 150-day average is £230. The moving averages are between the immediate resistance of £245 while the support is at £212.4
The judgement day
The stock is now on what’s known as the “judgment point,” as the gap between the trendline and the support level has gotten very steep. From here, two scenarios are in sight: either the bulls will push the price above till the immediate resistance to break this bearish trend, or the bears will claim the support level, and the trend will continue. A good trade can be executed if the price sustains above the level of £232
Conclusion
The Legal and General (LON: LGEN) stock has been rated buy by most analysts. However, the bearish trendline is closing down on the support level and the bulls will have to make a major comeback to sustain. The prediction will be bullish if the stock sustains above a certain level
Technical Levels
Support: £217 and £188
Resistance: £245 and £265
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets or stocks comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/10/08/lon-lgen-investors-near-the-judgement-point-whats-next/