Financial Trading Blog
Stock of the day 27/06/2016 – Dixons Carphone PLC
Up until last Friday Dixons Carphone had been having a fairly muted, if still negative, 2016. Kicking off the year at £5.02 the stock immediately began to fall, slumping to £4.27 after the first 3 weeks of trading. The payment of its interim dividend, and a 5% rise in like-for-like sales over Christmas, then helped lift Dixons Carphone back towards £4.75 by the end of the month, only for the stock to suffer in the turbulence that defined the first fortnight of February.
(Source: IT-Finance.com 27/06/2016)
From that point onwards the stock was in a state of gradual decline, Dixons Carphone just about keeping its head above the £4 mark for the next 3 months. Things picked up in the back half of May, the company’s brief rise capped off with a high of £4.61 following a fourth quarter update that saw CEO Seb James applaud a ‘stonking year’ of trading after posting a 5% jump in like-for-like sales for the 4 months to the end of April.
Yet Dixons Carphone couldn’t remain at that level for long, the pre-referendum run-up taking the stock below £4 for the first time since the end of 2014 before recovering as the polls started to point to a Remain win. Then the results came out, and Dixons Carphone plunged 13%, at one point hitting a 32 month low of £2.41. Dixons Carphone PLC sits at a current trading price of £3.40 (IT-Finance.com, 27/06/2016).
In terms of the company’s full year figures on Wednesday, analysts are expecting Dixons Carphone to post a 17% rise in pre-tax profit to £447 million despite a 3% drop in revenue to £9.6 billion. The company will also be under pressure to update on the impact of the Brexit referendum result, and whether any further store closures will be in the pipeline.
Dixons Carphone PLC has a consensus rating of ‘Buy’ with an average target price of £5.25.
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
DISCLAIMER
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.
The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.
