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Financial trading blog

Friday, July 08, 2016
Connor Campbell - Market Analyst at Spreadex

Stock of the day 08/07/2016 – Group PLC

Things almost immediately got off to an awful start, 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.

Moneysupermarket .com Group PLC Chart July 2016 Spreadex Financial Spread Betting
(Source: 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 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. Group PLC has a current trading price of £2.39 (, 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


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