The Case for and Against Leucadia National Corporation (LUK)

Leucadia National Corporation (LUK) is an interesting player in the Financial space, with a focus on Investment Brokerage – National. The stock has been active on the tape, currently trading at $23.86, down from yesterday’s close by -4.60%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Leucadia National Corporation (LUK) currently trades with a market capitalization of $8.74 Billion. That value represents a market adjusting for revenues that have been growing by 16.66 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $1.83 Billion over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of $0.47 on a per share basis this quarter. Perhaps, that suggests something about why 12.90% of the outstanding share supply is held by institutional investors.

Technical Analysis

It’s important to check the technicals to get a sense of how LUK has been acting. Looking at the stock’s movement on the chart, Leucadia National Corporation recorded a 52-week high of $28.30. It is now trading 4.44% off that level. The stock is trading $26.60 its 50-day moving average by 2.74%. The stock carved out a 52-week low down at $22.23.

In recent action, Leucadia National Corporation (LUK) has made a move of -14.30% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 16.2, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 1.20% with $316.21 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of LUK.

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