Financial trading blog
Friday, July 08, 2016
Stock of the day 08/07/2016 – Moneysupermarket.com Group PLC
Things almost immediately got off to an awful start, Moneysupermarket.com plunging 11% on the 15th January as tougher competition caused a 10% sales slide in its insurance division, news that far outshone the fact the company was set to post a 14% rise in full year group revenue to £282 million. This left the stock at around £3.20, a price it struggled to truly break away from in the following months.
(Source: IT-Finance.com 08/07/2016)
It briefly managed to climb to £3.54 at the start of March, a 15% jump in adjusted full year operating profit to £100.1 million joining the aforementioned rise in revenue, though it couldn’t stay there for long, trickling back to £3.20 by mid-April. The company then received another knock lower in the form of its first quarter trading update, a 9% surge in group revenues to £83.7 million countered by 2% decline in year-on-year insurance sales to £36.1 million. This left the stock bouncing around the £3.10 mark for most of May, before rising back to £3.30 by the 1st June.
Yet more bad news quickly put an end to that climb. Reports that Compare the Market had consistently received more monthly visitors than Moneysupermarket.com for the past year sparked a serious decline for the stock, leaving it at a 12 month low of £2.74 by the middle of June. The Brexit result then made matters worse, with Barclays downgrading the company due to ‘a forthcoming expected recession in the UK’ and its likely impact on household spending. That sent the stock to an effective 18 month nadir of £2.26, and leaves it with a hell of a job to reassure investors when it reveals its post-close trading statement next Tuesday.
Moneysupermarket.com Group PLC has a current trading price of £2.39 (IT-Finance.com, 08/07/2016) with a consensus rating of ‘Hold’ with an average target price of £3.17.Recent Posts:
Morning Market Comment 08/07/2016
Evening Market Comment 07/07/2016
Afternoon Market Comment 07/07/2016
Stock of the day 07/07/2016 - Burberry Group PLC
Morning Market Comment 07/07/2016
Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone so please ensure you fully understand the risks involved.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this blog should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This blog does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this blog does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this blog by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this blog.
The information contained within this blog is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com