Hargreaves Lansdown

Hargreaves Lansdown is a major UK investment management and financial services company. Broker consensus on Hargreaves Lansdown is Neutral (52.9% of brokers), with 41.2% of analysts advocating “sell” and only 5.9% in favour of “buy”. (Source: Bloomberg, Date: 31.05.2018)

Brokers’ average 12-month target price is 1673p. Latest broker recommendation from Exane BNP Paribas is rating Hargreaves Lansdown as an “Underperform”, with a target price of 1445p. (Source: Bloomberg, Date: 31.05.2018)

Source: CMC Markets, Date: 31.05.2018

Hargreaves Lansdown shares have been experiencing periods of both positive and negative momentum in 2018, with shares trending upwards during the April-May period. Because the trend line has shifted multiple times since the beginning of the year, a traditional buy-and-hold strategy would net investors a 4.91% return year-to-date (31.05.2018).

At the same time, investors who use a shorter-term momentum strategy would have been able to seize multiple buy and sell opportunities, with cumulative return in excess of longer-term buy-and-hold approach. Compared to traditional investment approaches, a momentum play is a more proactive strategy that gives informed investors multiple entrance and exit points into the market.

With discipline, foresight and thorough research, momentum investing can become a profitable alternative to traditional market strategies. The two approaches are complementary, with investors able to both follow a long-term trend and take advantage of short-term momentum plays when they spot an opportunity to profit from an emotional market reaction.