Hargreaves Lansdown Share Price Review
Updated: May 18
Have you considered buying shares in Hargreaves Lansdown (HL) before? It’s always been on my list of companies to look into, but I’ve never taken the plunge – and now I wonder if it’s too late to jump in?
Let’s take a look at the Hargreaves Lansdown Share Price history and see how it compares to its competitors.
What Happened to Hargreaves Lansdown Share Price?
Over ten years ago, Hargreaves Lansdown (HL) entered into a partnership with Fidelity Investments (FIDU), which made it possible for HL to pool its funds together with those of FIDU.
By having access to FIDU’s platform, HL was able to create a fund-of-funds portfolio where it could buy shares in multiple investment trusts and OEICs and diversify its investment.
The arrangement also allowed both companies to operate under different legal entities, so FIDU became an RBS entity while HL continued as a mutual company owned by its customers.
However, things changed when RBS decided that it didn’t want to support HL as much anymore.
As a result, FIDU was moved from being part of RBS back to Fidelity where it had originally been born. It wasn’t clear why exactly RBS had taken away some of its support from HL but financial experts speculated that: The reason for [RBS] review appears to be their strategy to divest [sic] non core operations which includes retail investment businesses like Equities and Loans divisions
A Look at the HL Numbers
I’m going to take a look at Hargreaves Lansdown share price and see how they are doing. Hargreaves share price is currently £1,631. This is great because that means that it has increased in value since it started.
Since its launch in June 2011, shareholders have seen a total shareholder return of 142%. That is great considering that some of its competitors only offer 14% shareholder returns on average over 10 years.
The best thing about share prices is that you can sell your shares if you want to. An example of an investor who did just that was Simon Nixon when he sold his shares for £2,042 each.
Are There Any Changes to Expect from HL?
Shares in Hargreaves Lansdown have been gradually falling over the last few months, and there’s no sign of it slowing down. What does all of that mean for investors?
Well, it’s time to take a look at what we know about HL and whether or not its value will remain intact in 2022.
Here are five things you need to know about HL right now:
(1) New investment opportunities may be on their way;
(2) Employee shares could be worth something someday;
(3) Steady returns could become a thing of the past;
(4) Past performance doesn’t guarantee future success;
(5) It’s too early to write off an established firm.
Are there any more changes to expect from Hargreaves Lansdown in 2022?:
The short answer is no, but you should still keep reading because understanding how HL operates is key when trying to understand why. In particular, learning why other brokers don't want HL customers might come in handy if they start releasing new products again.
Unfortunately, it's unclear exactly what's going on behind closed doors at HL these days so don't expect answers anytime soon—but also don't give up hope entirely either.
What Next for HL Shareholders?
It’s not uncommon for companies with a strong share price to see that value eroded by short-term weakness in their business – whether driven by general economic conditions or specific industry factors.
It’s certainly true for Hargreaves Lansdown (LSE: HL), which has seen its share price fall from around 1550p at its peak in early 2018 to around 1170p today.
Hargreaves Lansdown Summary
Hargreaves Lansdown is an online investment broker that specialises in investment services for private investors. Founded in 1984, it has grown exponentially and now holds a market share of 80% in terms of private investors' assets under management.
The company is headquartered in Bristol and its shares are listed on London's AIM stock exchange, as well as being quoted on NASDAQ.
Its founder Peter Hargreaves remains actively involved with the company today, acting as chairman while his son Stephen manages daily operations.
For all its success, it hasn't always been plain sailing for Hargreaves Lansdown, just google "Woodford"