Financial Trading Blog
Stock of the day 18/04/2016 – Moneysupermarket.com Group PLC
After finishing 2015 at all-time highs, and continuing that trend in first fortnight of the New Year (hitting a fresh peak of £3.81), a mid-January update swiftly saw things go south for Moneysupermarket.com. Tougher competition saw the company’s insurance sales fall 10% for the final quarter of 2015, news that was incredibly poorly received by the market. Investors were so troubled by the news, in fact, that even Moneysupermarket.com’s reassurances that it was on track to see a 14% surge in full year sales to £282 million failed to prevent a sell-off, the stock plunging nearly 11% in one day to a 6 week low of £3.09.
(Source: IT-Finance.com 18/04/2016)
Add onto that self-inflicted misery the general market woes that opened 2016 and by start of February Moneysupermarket.com was testing the £3 mark for the first time since the previous December. Yet things did begin to pick up as February continued, and by the start of March Moneysupermarket.com had managed to briefly climb back above the £3.50 thanks to an impressive set of full year figures. Confirmation of a 14% rise in revenue to £282 million was joined by a 15% increase in operating profits for the year ending December 31st, hitting the £100 million mark fort the first time.
Yet as mentioned its rise above £3.50 was brief, and since then Moneysupermarket.com has struggled to halt its decline, ending up at a current trading price of £3.22 (IT-Finance.com, 18/04/2016) having hit £3.11 at the start of April.
In terms of the company’s first quarter figures, Credit Suisse issued a very positive note at the start of the month, giving the stock a £4.05 target price and an ‘outperform’ rating after stating that Moneysupermarket.com has a ‘impressive track record of EPS growth’ and was likely to grow its sales quicker than most analysts are expecting.
Moneysupermarket.com Group PLC has a consensus rating of ‘Hold’ with an average target price of £3.44.
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