Financial Trading Blog

Stock of the day 19/05/2016 – Cranswick PLC



So far 2016 has been a rather tasty year for food producer Cranswick. Can its rise and rise continue following its full year figures next Tuesday?


Having closed 2015 at record highs Cranswick immediately began building on that peak as the New Year began, leaping past the £20 mark at the end of January following its post-Christmas update. For the final quarter of 2015 Cranswick saw a 5% rise in revenue, with sales volumes jumping 11%; most importantly sale volumes in Asia grew by a staggering 28%, Cranswick continuing to rapidly expand its pork-presence in the region.

The market turmoil of February, however, meant that the company couldn’t remain at fresh highs for long, and until mid-March Cranswick could only sporadically dip its toe across that landmark £20 level. It wasn’t until the broader market gains in the back end of the month took hold that Cranswick could forge forward with renewed momentum, jumping above £21 by the beginning of April.

Cranswick PLC Chart May 2016 Spreadex Financial Spread Betting
(Source: IT-Finance.com 19/05/2016)

The company’s fourth quarter trading statement on the 4th April then gave the stock another nudge in the right direction, as Cranswick posted a 12% rise in total sales volumes for the 12 months ending 31st March. The pork producer’s April awesomeness didn’t end there, with Cranswick receiving a 16% boost as it revealed it had bought Crown Chicken for £40 million in a bold move into the poultry market.

Yet within a week of that surge, which saw Cranswick (briefly) cross £26 for the first time, the stock had lost most of its lustre, and since then has spent the past month or so bouncing between £23 and £24. Cranswick sits at a current trading price of £23.02 (IT-Finance.com, 19/05/2016).

In terms of its annual figures next week Cranswick will be looking to build on the £1 billion in revenue in managed last year, whilst any increase on the £52.8 million it saw in pre-tax profits will likely have investors as happy as pigs in, well, you get the picture.

Cranswick PLC has a consensus rating of ‘Buy’ with an average target price of £21.67.

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