Saga Trading Update To Appeal To More Than The Over Fifties?
Spreadex | Jun 18, 2018 10:40
Will it be more than just those 50 and over interested in Saga’s latest trading update on Thursday?
The stock is yet to recover from the Monarch Airlines-related profit-warning inspired plunge suffered at the start of last December. Up until mid-April, Saga has spent most of the year trading between £1.10 and £1.20, its worst range since debuting on the stock market back in 2014.
It did manage to rise to £1.39 by the start of May, a 5 month peak, only to slide back towards at a current trading price of £1.27, in part thanks to going ex-dividend on May 17th.
The reason for Saga’s brief recovery was April’s better than forecast full year results. Though pre-tax profit from continuing operations dropped 7.6% to £178.7 million, underlying pre-tax profit managed to nudge 1.4% higher to £190.1 million, with a healthy 5.9% jump in full year dividend to 9.0p per share. CEO Lance Batchelor went on to say that the company has its ‘pricing in the right place’ and has ‘seen a significant uptick in new motor and home customers joining the brand’.
The firm has already warned that profits are expected to fall in 2018/19 due to insurance price reductions. Any update on this could be crucial to the reaction to Thursday’s statement, as will more general signs that the issues that plagued the company in 2017/18 have begun to ease in the new financial year.
Saga (LON:SAGAG) has a consensus rating of ‘Hold’ alongside an average target price of £1.99.
Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. 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.
Get The App
Original post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.