Financial Trading Blog
Stock of the day 19/05/2016 – Cranswick PLC
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.
(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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